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Your Questions About How To Invest In The Stock Market For Beginners

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  • 1. Your Questions About How To Invest In The Stock MarketFor BeginnersGeorge asks…Stock Market Beginner?What would be a good book or internet school for a person that wants to learn to invest buthas no possible idea were to start.i would like a book that teaches you evrything about the market including. Market Terms,currency trading, internet trading, explains what hedge funds and bonds are, and tells you howto invest when starting with nothing.I am 14 and plan to start investing within the next monthalso i will be taking a general business class this year in school and i would like to excel in thatclass.Steve Winston answers:Start at http://finance.yahoo.com and on the investing tab, choose education. That will be agood set of primers. Then you will better be able to know if/what you want to learn more about.But in the mean time that will cost you nothing and get you started. 1 / 13
  • 2. Chris asks…Stock market for a beginner.?Im 21 yrs old and I am starting to think about the future. How do I begin and learn how toinvest in stock?Steve Winston answers:You must begin with assessing yourself. Understand your personal monetary strength, financialgoals and risk tolerance. Then look for investment options that fit your investment appetite. Thiscan be either mutual funds, stock market or real estate.Then zoom to individual asset classes looking for profitable venture. This might be difficult if youare first timer, but soon enough it will become handy as you moves along. Dont be afraid tomuch. Get yourself started, start small and be prepared to lose some. Youll gain moreexperience along the way.Step by Step Stock Investing for Beginnershttp://www.stock-investment-made-easy.com/ 2 / 13
  • 3. Helen asks…I need an expert on the stock market, I am a beginner.?I know the basic information about stocks like what they are, but I do not understand what allthe numbers mean when looking at stocks. Like what do all these numbers mean?:http://www.google.com/finance?q=NASDAQ%3AGOOGPlease help, i have about a month until i invest in my first stock.Any tips I need to be successful?Also, how much money can the average person make in stocks in about two or three months?Thank you for anything you have to say.Steve Winston answers:Please read this answer I wrote to another yahoo answers user about what the numbers mean.In that question I explained what the yahoo finance numbers mean, but these numbers wouldapply if you looked up the same stock in google.Here is the answer to read about what the numbers mean:http://answers.yahoo.com/question/index;_ylt=Appe7nG6ZsoPKc4VRdyGFfvsy6IX;_ylv=3?qid= 3 / 13
  • 4. 20111019143223AAO5ErvBTW, i did not explain beta but beta basically says if you multiply the beta number times the s&p500s return for a period of time (beta is actually a measure of the stocks movement comparedto the whole market) that should be the return for the particular stock for the period of time.Making sense of beta:googles stock price is $583.67. Lets say the s&p 500 goes up 1% tomorrow. The google stockwould be expected to go up to the price given by this formula: $583.67(price) * 1.14(beta)*1.01(s&p500 percent change).S&p500 and dow jones industrial index are two indexs which measure market movement as awhole.The best tip I can offer is invest in stocks that will increase their earnings... (increased earningsin the present or future raises a stocks price, there is an advanced formula for calculating astocks price... You probably would need to take a finance class to understand it)... I recommendif you do not know the increase in earnings of companies that well that you invest in dividendstocks. Dividend stocks pay you to hold the stock from the companys money.I would recommend an etf to invest in instead of just one stock. You should diversify yourinvestments to reduce risk. You could invest in the SPY which is a fund that invests in thecomponents of the s&p 500.Or you can find dividend stocks here.Http://www.dividendstocksonline.com/dividend-yield/How much money you make in stocks depends on a stocks performance and marketperformance.This is why i recommend dividend stocks. If you invest $10,000 in a stock and the dividend rateis 5% you will surely make $500 profit for holding that stock for 1 year. As far as 2-3 months, themoney you make will depend on the change in price for the stock. If the stock goes up 10% andyou invested $10,000 you made $1000. This is how the stock market works, what makes stocksgo up is increases in earnings, increase in demand for the stock, and buyout speculation.Stocks are treated like pieces of a company, when you own a share you own a part of acompany. So when you sell a stock its like selling a part of the company to another person. Theprice you get will depend on the value of the stock you sell, which can increase from theprevious reasons I mentioned.I wish you well in stock market investing future. Be careful with your money, stock market canget addicting because you earn money when investing. Dont go invest in companies withoutdoing research... Which I informed how for you earlier in this post with a reference to the otherquestion I answered. 4 / 13
  • 5. Maria asks…How much money should you expect to make starting out in thestock market?Im thinking about trying to trade stocks. I have no experience at all besides from what i pick upin the wall street journal. Im gonna invest 500 bucks at first and see how it goes. I just wantedto know if you guys had any tips for beginners and what i can realistically can expect to makewith a 500 dollar investment. I appreciate the help.Steve Winston answers:$500 is too little to invest in stocks.At the outset, you should expect to lose money. For this reason, trade small. Heres the advice Itypically offer:An introductory book like _Stock Markets for Dummies_ is a good place to start. This will giveyou a basic explanation of most things there are to know about the mechanics of stock investingincluding useful websites to surf. 5 / 13
  • 6. Investors Business Daily (IBD) is a solid daily resource (and its complement,www.investors.com ). Its a better newspaper than the Wall Street Journal and it is built arounda particular approach to trading. You could read _How to Make Money in Stocks_ by WilliamONeil too--hes the founder of IBD.Search your local library for other books on stock investing. Try to absorb as much knowledgeand understanding as you can.After you have extensively researched and gained a solid foundation/education then look toopen a brokerage account and paper trade--this is trading with play money before you put realcapital at risk. You should do extensively before you eventually place your first trade live. Yourearly live trades should be with a very small position size. Only increase position size when youhave done well to limit losses when the market has turned against you.Ruth asks…Beginners guide to the stock market?I want to use some of my first few checks to invest in the stock market, but Im not sureexactly what goes on. I know stocks and stock prices are driven by supply and demand, butother than that, Im clueless. I have a few questions, and Id really appreciate it if someone couldhelp me out.1. What are some of the basics of the stock market?2. How do stocks effect taxes?3. How do you "research" a company?4. Anything else I should know?I think thats it. Does anyone know of any reliable books or websites where I can get moreinformation on the background of the market? Ive heard e*Trade is one of the best options to 6 / 13
  • 7. trade stocks and that they have tutorials. But I dont know if that information is free or if I need topay, and I dont start my job until next week.Thanks for any help!Steve Winston answers:Investopedia is where I started.1. Im not sure what you mean by basics but you should look up the following terms becausethey are predictors of if you should buy or sell the stock although its never definite and in thisstock market where everyone sells once something a little bad happens its harder to makemoneysearch these terms up on investopedia.com the encyclopedia on investingdividendsEPSP/Emarket capitalization (or market cap)blue chip stocksyieldSECbalance sheetearningsand then you should look up words that you dont know that you come across on investopediaas well2 Stocks dont really effect taxes but if you make money in the stock market you get taxed onthose gains at different percentages, Im not sure what they are yet but I believe Obama or Bushraised them to 40%3 use the terms I selected above so that you can "research" companies. But to start out I wouldstart by opening an account at fidelity or any brokerage that offers Dividend ReinvestmentProgram or DRIP for short. Then reinvest your high yield dividends in that program which is howI get my high gains.4 If I were you I would go for the stocks paying high yield dividends which you can look up ongoogle because the company is basically paying their owners(you as a share holder) somemoney that they made each quarter. 7 / 13
  • 8. Charles asks…i am a beginner in the stock market, i have a question,come in pls,lotz of thanks?when you see the price of the company in yahoo finance page. For example, Yahoo stock isaround $26, how much is the least amount that i have to put into invest, please tell me howcan i calculate it out? please give me an example.Steve Winston answers:$26 is the least to invest, if you want only one share. $52 for two shares, etc. 8 / 13
  • 9. Ken asks…Im 14 and Want to Get Involved In the Stock Market?Im 14, and want to get involved in investing early. Ive been researching the stock market,because no one has ever told me what it actually is, and I think I have some understanding of it(its basically buying and selling parts of a company) , but if you could give me an explanation itwould help.For a beginner, what would be the best stocks to invest in. I think that oil and gold would bethe best, because gold never seems to lose value, and gas prices being so high right now. But,what are other good stocks? Should I invest in things I know are popular, like corporations likeMcDonalds and Walmart?I have $104 to invest. I dont think I can get a broker, but I hear you can invest through yourbank. So, how can I get involved in the stock market, could you explain the stock market,and what should I invest in?Steve Winston answers:Yes, you are right that it involves buying and selling parts of a company, i dont know what elseto tell you i could go on for paragraphs. The best thing to do would be to go on wikipedia andread it over and over again. One vital thing you should remember and understand is that, acompany can be doing phenomenally well, but the stock can still go down; when it comes downto it, the only thing that drives a stock price up is the conglomerate of investors trying to buy thestock. Oil and gold! Bingo! You are smart! IF i were you, I would go on market watch and sign 9 / 13
  • 10. up for virtual stock market games, its just like the real thing but you arent playing with realmoney, you still get to learn it and practice with it.Usually the best things to invest in that are safe, are large corporations as you said, such ascoke, Pepsi, Mcdonalds, because they usually arent very volatile; companies like these usuallypay dividends as well, but youre not going to see their stock price rampantly jump up becausethey are already an established company.Because you only have $104, you are right you should avoid the brokerages, i know e-tradecharges me $10 per trade and charges you per year if you dont have a minimum. Silver andGold are excellent investments because there quantity on Earth remains the same! You couldtake your $104 and buy some REAL silver, but this is a great way to invest your money withoutany brokerage commission fees.David asks…Where could $150 go in the Stock Market?Im 16 years old and very willing to invest in the Stock Market. I contacted my local EdwardJones and Im trying to set up an appointment sometime in the near feature.I dont know a lot about it except that Id could by a few shares in one company or buy severalshares in different companies. Theres also things called "Mutual Funds" and stuff like that.Theres a lot that I dont know but Im very willing to learn it because I really enjoy this stuff.So, what could I do with $150? What stocks would be good to buy as a beginner? How do thefees work for the broker? What will it be like when I talk to my broker?Well, there are several more questions, but thats all Im going to ask right now. I will be going toEdward Jones in the near feature, but Id like to know some things ahead of time so I knowwhat to expect. 10 / 13
  • 11. Thanks for your help!Just to let you know, I understand that my parents would have to buy the stocks for me andthey dont have a problem with that.I also know that I wont personally own the stocks since it would be under my parents nameuntil Im 18.Steve Winston answers:I was in your place too, im now 18, i opened a scottrade account they say you need $500 tostart, i opened it with 100 and put more in as i went along, but i suggest $500, do your researchalot, and expect to lose some, i would look at a online broker such as scottrade or another, lookfor cheap commision but also look for what tools they have and what hidden fees, in scottradethere is no hidden fees, and its 7 dollars to trade so 14 to buy and to sell all together, heres acode if you decide on scottrade like i did:VNQP7030 when in sign up processI am a moderator for a community site kinda like face book for stock holders and researchers,its a 100% free site, non push site (we wont tell you to buy a stock to get us a gain), has a facebook style design and a stock chat, its StockGoodies.com hope to see you there,Goodies4monkeys sent youSource(s):stockgoodies.com moderator Goodies4monkeysscottrade.com trader 3 free trades code:VNQP7030 11 / 13
  • 12. Mark asks…Regarding stock market?Ive got new questions about investing:1) How much money should a beginner save to get into a stock market? I mean, is there anyrange of a minimum stock price?2) What industries are included in stock markets?3) What sources did you use to learn more about stock markets and how to predict acompanys performance? How long did it take you to get a clear understanding of how thewhole stuff works?4) What books/movies/journals/web sites would be beneficial in my research of stockmarketing?5) Some say a person should invest in what he knows the best, whereas others base theirdecision on recent reports and additional details. Is it really necessary to research the wholeindustry and get used to it in order to make sure what will make money and what wont?6) Which option is the most beneficial, buy several small stocks of different companies or investeverything in one that seems right?7) Did something inspire you to become an aspiring investor? If yes, what was it?8) Have you succeeded in making investments?9) Do you use brokers or some consultants when buying/selling a stock?By the way, some of these questions are needed for a questionnaire, so please be serious.Steve Winston answers: 12 / 13
  • 13. 1. Stocks can range anywhere from 1 penny to tens of thousands of dollars or more. You should realistically have at least $500 to start investing in stocks, ideally more. 2. All industries are covered. 3. Ive used books, google finance, yahoo finance, thestreet.com, seekingalpha.com, etc. You can get a reasonable understanding of the market by reading up as much as you can, either books, websites, etc. 4. Www.investopedia.com, www.thestreet.com, google finance, yahoo finance, etc. 5. You might never truly know 100% whether a stock will go up or down, but you can make educated guesses as to where the market will go. Its easier when you have an understanding of the company and the industry that its in, but its not totally necessary. But it does help. 6. In the long term, its always best to have a diversified portfolio. You may have one or two big winners where youll be thinking "man, I should have put it all into that one", but by being diversified, if you happen to pick the next Enron, it wont wipe you out completely. 7. I was tired of making insignificant interest on my savings accounts, gaining 1 - 2% interest just wasnt cutting it. So, I decided that stocks were the way to go. 8. Yes, Ive been quite sucessful so far. 9. You need to use a broker in order to make the trades, but I dont have outside brokers giving me advice on where to invest my money. The best thing is to do your own research and understand why youre investing your money, where youre investing your money, and know when to get out so you dont wipe yourself out with a bad pick (because weve all picked a real loser sometimes). Powered by Yahoo! Answers Read More… Your Questions About How To Invest In The Stock Market For Beginners 13 / 13Powered by TCPDF (www.tcpdf.org)