Investing ? Q&A: How do you start smart investing in stocks ...

September 15, 2011

By admin in Finance FAQ | 26 comments

Investing Question by Solution: How do you start smart investing in stocks?
I was told to do stock options over investing in stocks? Yet,I find the risk factor is too high in options. So I rather invest more in stocks and see what type of outcome manifests itself. What would be the first step? Besides going on these sights like Etrade etc. Is wall street still open for the little guy? Please help!!!

Best answer:

Answer by Susie T
The first step is to educate yourself. There are many books on investing (Investing for Dummies?), and many, many online sites that can help. Every major investment company has a web site with educational info (Schwb, Vanguard, Fidelity, T Rowe Price). Also every mutual fund company. Most novice investors start with money markets and mutual funds. See Morningstar.com for info and fund evaluations.

You need to understand a) the risk of whatever you invest in. There are different kinds of risk, and EVERY investment has SOME kind of risk, even Treasuries.
b) how the investment works: will it produce interest income, dividend income, capital gains, tax writeoffs? How valuable each of these is to you depends in part on your tax bracket and what your goals are (how far along in life you are?are you investing shortterm and need money in x years or months, or are you investing for your children?s education or for your own retirement?) Don?t invest in anything you don?t understand!
c) if someone is selling this product to you, what is their commission? Some products cost 7% upfront. This reduces the amount that is actually invested. If you are buying online, what is the per-trade commission? Are cheap commissions important to you, or is it more important to have a person you can talk to and ask questions of? This will determine WHO you invest with.

Here?s a web site with lots of info:

http://www.investopedia.com/terms/i/investmentpyramid.asp

And here?s a picture of the ?investment risk pyramid?, showing least risky investments, going up to the most risky investments.

http://i.investopedia.com/inv/articles/site/investment_pyramid.gif

Good luck to you!

Know better? Leave your own answer in the comments!

Investing

According to the FBI, people scrawling with sidewalk chalk and even those attending documentary screenings of controversial films can pose a threat to Homeland Security. Chicano activist Carlos Montes says this new widespread attack targeted against peace advocates and immigration rights activists is only the newest wave in the federal government?s attempt at silencing the outspoken. Follow Lauren on Twitter at twitter.com
Video Rating: 4 / 5

Related posts:

1. Investing ? How can a student start investing in bonds and stocks?
2. Investing ? Where can a person start investing into an IRA that doesn?t require a lot of money for the initial deposit?
3. Online investing ? How much money should a beginner start out with before investing online?
4. Online investing ? Q&A: What are some good sites to learn about online investing/online buying and selling of stocks?
5. Investing ? Q&A: What should an 18 year old know about investing in stocks?

email this?|?tag this?|?digg this?|?trackback?|?comment RSS feed

Source: http://yareo.net/investing-qa-how-do-you-start-smart-investing-in-stocks.html

robert downey jr bolivia aspirin aspirin mentalist mentalist alcatraz