Money Forum World

Coy S. · Joined: 08 Nov 2007 Posts: 2116

I am wanting to get into purchasing stocks but I don’t have clue how it works. How much money is needed? and if I start losing money does it mean I could end up paying or what. know any good sites with good info for beginners?

Jeanne Humphrey · Joined: 08 Nov 2007 Posts: 2164

Congratulations on to get started. Itâ€™ll assist you more than you know. You ask a broad question, so be prepared for a pretty long answer. Just take it in chunks.

How to invest depends on what you already know. Well assume that youre beginning since you say youve got no clue.

A good primer is How to Make Money in Stocks by William ONeil. you may be able to get it cheap just about anywhere. Itâ€™s widely available new or used.

Another good one is one of Jim Cramers books.

But books will only get you so far. At some point, youll also want to get at least a little training. There are some great education businesses if you want to make the investment. Investools.com or optionetics.com are both good businesses as is tmitchell.com

For free, you may be able to start by visiting thestreet.com and investopedia.com. Thatll get you a pretty good primer so at least youll understand what the markets are and what a stock is, etc.

If you get a chance, watch Mad Money on CNBC. Dont trade any of his picks till you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like investorsbusiness daily or something like that that may help you recognize good stocks.

Once you are aware of stocks, go to 888options.com. Its a web site thatll assist you understand alternatives what they do, how they work, etc, and you dont have to trade them, but the more you know, the more youll see how alternatives can really be the safest way to invest once youre educated .

For discipline which is crucial to successful trading, most likely Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter

I know thatâ€™s lots to take in. Just take it one step at a time for now. Start with a book or two to get you an idea of where to start. Take your time, and let it seep in.

As you get up to speed, you may want to papertrade to practice greatly suggested . This will help decrease your losses in the beginning as you get used to buying/selling.

You can practice free of charge on nearly any reputable broker site optionsxpress, scottrade, thinkorswim, etc .

Start slow, then as you figure things out, you may be able to purchase more shares.

Congrats again on to get started. If you have any questions, let me know.

Hope this helps.

Angelica Chan · Joined: 08 Nov 2007 Posts: 2120

investopedia.com &lt,&lt,learn
sharebulider.com &lt,&lt,best for noobs

start with as much as $10
seach for sharebuilder promo codes and you may be able to get a free $50
the most you could lose is what you put in, you wouldnt have to pay more.
if you purchase stocks at $50 and they go down to 0, you owe nothing and are owed nothing though this is not likely to happen.
look into ETFs they trade like stocks but are less high risk because its like a mutual fund but without the fees, but you still have to pay commission, sharebuilder has the cheapest commission. $4, they're for lasting investors, set up an auto investment plan.
look into QQQQ and SPY and DIA, they're the most liked index money.

good luck

Noel · Joined: 08 Nov 2007 Posts: 2117

Its really easier than it looks. .. how much money is obliged. . depends on the broker, and what they charge in fees... with the conventional brokers, who charge around $10 commission fee per buy, you have to purchase at least $1,000 worth of stocks to hopefully quickly break on your buy and hopefully start making a profit on it. With some of the newer discount brokerages, like Sharebuilder.com you only have to stick about $100 or less on a stock buy to break quickly.
Remember the more times you purchase &amp, sell stock, the more commission fees youll have to pay. The more commission fees you pay, the more itll eat into and / or clean out any profit you make.
Also... if somebody gives you a hot stock tip, dont take their word for it.. think about it more of a lead to research into that company yourself before making up your mind.

Before you decide a broker, 1st learn as much as you may be able to about working the stockmarket from these sites:
fool.com/school/basics/basics.
investopedia.com
beginnersinvest.about.com/library.

You can also want to get some practise in with a fantasy portfolio there are lots of them games online if you know where to look, so you just lose pretend money rather than your when to get the hang of things.

Then you may be able to start picking a broker, like Sharebuilder.com I use a UK variant of it, operated by the HALIFAX .

While they procedure your application, start researching some businesses for your 1st buy. . and use the portfolio service @ Finance to set up a watch list.
a good place to research also to Finance is quote.fool.com
A not many ideas to get you started researching are:
Anheuser Busch BUD
Walmart WMT
Union Pacific UNP
Coca Cola KO
Toyota TM
Vonage VG

And no.. if you start loosing money, you dont end up paying.. just get a Portfolio valuation with a sign beside the total for that stock.

Jonathan · Joined: 08 Nov 2007 Posts: 2155

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Good Luck and Best Wishes.

Alberta · Joined: 08 Nov 2007 Posts: 2109

You can start an account at sharebuilder.com with no money there's no minimum balance. you may be able to generally lose money if you invest in the stock market. But over the lasting, the stock market outperforms most other investments as well as real estate .

A great site to look at if you need advice on investing is top10traders.com The site lists out which investors are doing the best and what stocks they bought. Just click on the portfolio of the best investors and you may be able to see the stocks they like.This is a totally free site. you may be able to create your portfolio of stocks with $100,000 in play money,, then watch how your stocks compare against other traders. When you feel comfy with a stock you have in your play portfolio at http:top10traders.com then you may be able to go out and purchase the real thing at sharebuilder. Good Luck.

Clifford Benton · Joined: 08 Nov 2007 Posts: 2111

try the motly fool. it a stock newsletter that teaches about investing.
Sharebuilders allows you to by stock for as little as $10. or attempt a site that letts you build a portfolio and trade with pretend monies