Where in the market should a college student with around 5K invest (high risk included)?
I would like to begin investing in the stock market. My main motivation is to gain experience and learn all the subtleties of the market. I recognize that this is a perfect time in my life to take risks as in the future (after school) I will need to support myself and as I get older my investments will need to be more secure. This being said, where would you guys reccomend I invest. I would like a diversified portfolio that will allow me exposure into many different facets of the market. At the same time I would not mind exposing some of my money to larger risks and the possiblity of larger rewards/greater learning experiences (for better or for worse). Which markets and in which industries would you guys reccomend? Thanks so much.
Answers
364 points
ISIStudios answered one year ago …
It depends which school of investing you want to follow...for traders, the greater the risk, the greater the reward. For value investors, the less risk, the greater the reward. I know that may seem silly right now to you, but in time you'll see what I mean.
First I'd recommend reading up on the topic and coming to sites like this one when you have specific questions on stocks you're looking at. I'd read Joel Greenblatt's "The Little Book That Beats the Market". I'd also read any entry-level technical analysis books Murphy has put out along with O'neil.
Then I'd make sure I read the financial blogs/newspapers each and every day. You really need to immerse yourself in the market if you expect to do well in it (just like any profession or business).
If you're looking for industries to do further research in, I recommend technology and China. That's just my 2 cents. Good luck!
699 points
7million7years answered one year ago …
I agree and well done! Normally, I would tell you exactly what Warren Buffet would say, which is to find a low cost Index Fund (eg Vanguard) and stick your money in there and ...
.... wait!
But, since you want to (a) learn and (b) are prepared to take some risks, then pick up a copy of Rule # 1 Investing by Phil Town.
It will show you how to be a mini-Warren, Good Luck!
120 points
mario answered one year ago …
I would recommend that you open account w/ a brokerage firm that will allow you to place paper trades and engulf as much knowlege as you can about investing in the market.And play around w/ it and begin to understand the basics on how to enter buy orders and sell orders ect. Im sure there a some peole out there that would disagree w/ the whole paper trading thing. But why I recommend this is because of psychology as a trader if you begin investing real money and blow up your account and you see the risk in investing in the Market and the fear takes over and creates a mental block between you and the market. Creating you to avoid investing because of what happened in the past, this would be terrible. You would be passing up a load of passive income over the years of your life time when you begin to understand investing in detail and have a set of trading rules. Congrads on taking that 1st step to begining your investing career. Best of Luck
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