Stock Markets Exposed
Stock investing tips?
I am 18 and I want to invest just about 300 dollars into some stocks to get the feel of it. I know the basics of stock investing and I have people helping me. Where should I start? Pennny stocks? Mid-cap? Please reccommend some companies to invest
Public Comments
- go to www.google.com and search game stop as an example , and then go to it's wikipedia
- If you just want to get the hang of it, buy a American staple company like a PG, GE, T, KO, MCD. They are large cap stocks that you won't hit a home run on, but should be as solid as anything out there right now. If you are wanting to turn profits, then you may want to look at a small-mid, cap. I wouldn't reccommend ever buying penny stocks.
- I suggest that you invest in an index exchange traded fund. Investing all of your money into one company is risky. And the best way to diversify with $300.00 is to buy shares of a fund that's already diversified among many companies. Here is a list of exchange traded funds available in US markets: http://moneycentral.msn.com/investor/partsub/funds/etfperformancetracker.aspx
- $300 is a fairly small amount to invest in the stock market. With this amount, you should avoid investing in individual stocks and start with index funds instead. This will allow you to diversify. The broad the index the safer the investment, so I would also stay away from sector-based index funds until you have more money to invest. With the stock market in the shape that it is, if you really want to grow your money in a safer investment vehicle, then you might want to read this article, http://www.thefinancialfitnessclub.com/article.aspx?ID=1253. Good Luck, it is scary out there right now.
- The best advice someone can give you is invest in a company you can understand. Investing in a penny stock because of its price makes no sense, you might as well through your money away. Pick a company you already understand: Procter and Gamble (PG) they make a lot of household items you use. 3M (MMM) they make post-it note and other office items. maybe Sony (SNY) your game stop. Pick a company you can understand then go google it to find if it is publicly traded on an exchange and buy some shares
- With $300, transaction costs will eat into your portfolio quite a bit. If you want to hold just 3 positions, at $10 a trade, that'll cost you 10% of your portfolio just to get in. If you want to see your money grow, you'll need something that gives you some diversification like an ETF or Berkshire Hathaway. If you want to get a feel for investing, try xearn.com. You can place orders there and see how your portfolio performs, just like you would at a brokerage, except that that the portfolio is imaginary and you don't risk any money. Here are some great resources to help you get started: BOOKS: > Security Analysis by Benjamin Graham and David Dodd > Contrarian Investing: the Next Generation by David Dreman > The Aggressive Conservative Investor by Marty Whitman > Buffettology by Mary Buffett RESEARCH WEBSITES - Yahoo Finance - Google Finance - Morningstar
