Are there any do-it-yourself investing tips for someone that has never even looked at the stock market?
I have been considering investing for quite some time now, but have refrained as I really know nothing about it. Ive tried using mutual funds through the banks and have made only a few dollars in the past couple of years. I want to learn how to invest my own money into stocks, or whatever, so that the money that I do have is working for me instead of just sitting around collecting pennies. Where do I go to start? Where do I find investing opportunities? How do I invest the money securely (avoiding fraud)? Is a broker a requirement or just a facilitator?
Spend a year investigating and create a dummy portfolio at yahoo finance. Your yahoo potfolio will rise and fall with market changes, just like a real one. You can watch the stocks you pick over time and see how they did. At that page, you can also investigate individual stocks that you want to buy. If you are comfortable with the performance of your dummy investments, go buy some real ones. If you don’t think it’s for you after all, put your money in market index funds with a fund that does not have too high of a management fee.
I also agree with the first answerer, buy stocks of companies that you know or in a field that you know something about. Your knowledge of a business will help you know which companies are long-term and stable, and which ones are just market noise.
You can open an investment account to buy stocks with at your bank or on-line with a company such as Fidelity. They will explain how the account works when they open it for you. You deposit a sum of money into your account and then use it to purchase shares when you are ready, either on-line or by calling your investment banker.
Fools.com is a good web site dedicated to helping people become knowledgeable investors.
But the biggest advice of all – don’t make the mistake of buying when the price has increased and selling when it has fallen. Buy a good investment for a reason and sell it for a reason, not because of fluctuations in the market price.
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