basic stock help..
i would love to get into stocks, but i don't know where to start, and how/what to properly research so i know
Answers
511 points
songcon answered one month ago …
The best way for you is to join the local investment club. Go to the meetings and try to get to know a few members, people love to talk about their experience with the market, why they select their portfolios, give advices on what books to read, are charts helpful in stock selection etc . . .
You pick up a few ideas, keep in mind their positions, and suggest to exchange e-mail if you have some questions you want to learn.
There is a short book that I've recommended to a few friends of mine, the title of the book is: How I made 2 millions in the stock market by Nicolas Darvas. It's very easy to understnd and vry entertaining but you have to keep reminding yourself that the author is teaching you a method you would never practice if you're learning how to do it all by yourself
3963 points
MNSL answered one month ago …
I think it is better if you learn thoroughly before put your money.
If you have good experience and knowledge, current market is one of the best period for invest in stocks. Even now, you can find massively undervalued hidden gems globally.
Invest in simple business. Business that you know very well. Be sector oriented , global oriented and next rotating sector oriented.
Knowledge is power.
Best of Luck
904 points
jillybeansisme answered one month ago …
First things first. Make sure you have an emergency fund equivalent to 3-6 months basic expenses. Then, while you're getting that together, you can learn about investing. Start off with the free stuff -- there are great investment newsletters to be read. Cabot Wealth Advisory, Investment U, Forbes, and many others. Read all of the free Tickerhound articles. Read Stockgumshoe.com and they will give you the names of the invesments that other newsletters tease in order to get you to subscribe. Stockgumshoe will also often tell you what it thinks of the investment. Another great feature is the readers review the "pay outrageous sums for a subscription" newsletters that try to get you.
OK, so you've done all this and want to invest. Now you need to open an account somewhere. There a multitudes of brokerage houses that want you to open an account with them. You want to go where you are comfortable. Make sure they have an easy online trading program, because you will enter all of your trades yourself. If you give them to a broker/sales rep to enter for you, your commissions will go through the roof ($85 for a trade instead of $9). Commission fees are important because they eat into profits and you get those fees when you buy a stock and when you sell the stock.
So now that your account is open, it must be funded (money put into it). Then you have to figure out your risk tolerance (will you be puking into the porcelin if your investment loses $10?) and this will help you decide what types of investments you'll make.
Most mutual funds are geared to emulate an index (i.e., not the greatest return). ETFs are exchange traded funds and these funds are stocks in a specific sector (such as water or oil). ETFs trade like stocks and are quite liquid (movable--can buy and sell easily) but give you diversification in an area.
Stocks are ownership in a company. Options are the ability to own pieces of a company that aren't as expensive as owning the stock itself, but you need to know exactly what you are doing with them. Anyway, the ways you can invest vary and number greatly. Each has its own inherent risks.
Remember, EVERYBODY has a hot tip, but nobody will guarantee it. Make sure you set up a "stop order" when you order and don't get married to a specific investment. Let your head rule, not your emotions. Better to take a 25% loss and regroup than to stick to it until it has you in the ground! Also, make a decision at what point you will take some profits.
Happy Investing!
