Stock Markets Exposed

21, Fist time stock buyer, Advice from a Help from already succesful traders?

im a 21 year old male wanting to invest in the stock market for a long term purpose, no rush should i buy into companys like ebay, cosco, gold, while the price is low then sit back for the next 2 years collect and then do more long term and day trading with the money? *First time investor *looking for the best route *maybe putting about 2,000 into it ANY ADVICE WOULD HELP

Public Comments

1. Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan. These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street. They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor. I strongly recommend looking into it. They are great plans.
2. Read books written by unbiased, objective experts. You will find a list of such books at www.geocities.com/swayze_sloane/booklist.pdf
3. It's awesome that you're getting into investing so early, I did so two years ago, I'm now 20 and have done rather well over the past two years. You should check out Investopedia, if you have not already, especially if you are not completely certain as to what you are getting yourself into. The site has a lot of great tutorials and articles that should definitely help get you started. I am definitely an advocate of long-term investment, as trading, especially day trading is little more than gambling. It is much easier to know where a stocks price should be in two years versus two days. If you are looking to invest $2,000, you might want to consider ETF's, which are basically portfolios of stocks in a single market or industry. These allow someone with a small sum of money the ability to select industries that they think are superior, and then diversify themselves within the industry, while only paying one commission fee, versus dozens of them. If you are unfamiliar with these, Investopedia should help clarify what they are for you. Basically, given that this is your first attempt, I would suggest you focus on finding sectors or industries that are poised to outperform, and purchase ETF's, while you learn how to analyze individual stocks successfully. This way, your risk will be lower, while your ability to earn a solid return is not unnecessarily compromised. You should consider opening up a virtual practice account on Investopedia's website while you learn how to analyze individual stocks, as it will allow you to see how a strategy you pick would play out, without risking your money. It will allow you to not take on any risk, while being able to develop a successful strategy that you can implement in your real brokerage account, once you are confident. However, your idea about now being a good time to get in is fairly correct, which depends totally on your timeframe. If you are looking to make money in the next two or three months, there may be better opportunities, however, if you are looking two or three years out, there are definitely bargains out there today. However, you should consider adopting an averaging-down strategy, especially given today's uncertainty, which will reduce your risk further, and boost your future return. Just some thoughts, I hope they help! Best of luck! Brendan Prewitt
4. If you are a novice, and/or cannot afford to gamble with the money, then place it in a high star rated mutual fund.