Question: Investing in stocks for beginners?
im 17 and i want to get into stocks. i have 1000 dollars to spend, want to double or triple that. any ideas on how to start? where to start? what stock would you suggest? i heard bio-genetics is a good thing to invest in at this point.
Answer:
You want to double or triple your cash????? Sounds like a great set up for losing it all. You want to put it in one stock? All your eggs in one basket????? You want it to be in "bio-genetics"??? One of the most riskiest parts of the stock market (risky = Making a lot..... or losing it all).
Now here's the best part. You expect some stranger, whose qualifications and motives can never be known... to give you the keys to your financial future.
Here's the right answer you don't want to hear;
Take $100 of your stash & buy some books on Investing. Investing in yourself is how you make money in the market. Knowledge is the key... not some stranger telling you what hot stock to get into.
$1,000 is not alot to trade stocks. What I would do is use that to learn a few things about trading first. I'm just getting my feet wet as well. Lost $2,000, but I'm starting to turn it around. It's all about finding the right time to buy low and sell high. Unfortunately, it's not so easy. Thankfully, I came across a report that was very helpful to me.
Bio-Genetics sounds great. But that's because it's still "new". In reality, it's high risk. Honestly, I bio tech companies are a gamble because you never know if their products will even be successful. A Bio Tech with a seemingly great product will cost you huge if their product get turned down by the FDA. And people will know before you do if that's the case, and will crash the stock.
First thing you should do is take the quiz on this site. Some self-exploration of knowledge and more importantly, emotion, is absolutely critical, and the quiz will help with that.
http://bit.ly/stockmarkethack
Where did you hear about bio-genetics? It sounds like a load of crap to me.
If I had to suggest one stock I would say Waterfurnace energy, which is traded on the Toronto exchange so it is a pink sheet here. It is a solid company, about $250 million in sales and is a leader in geothermal energy heating and A/C for homes. Many states and utilities are giving huge tax credits to homeowners who buy these geothermal units and Waterfurnace management is looking at 10X sales growth in the next 6 years.
Symbol WFIFF
The stock market is basally made up of stocks and bonds. To start investing in the market you need to decide what risk level you want to take. For one of the safest place for your money would be something like CDs that's backed up by the government. It has about 3-4% annual return for the long term. Also on the long term, Bonds has about 5-7% annual return with a medium risk and Stocks has about 8-10% annual return with high risk. Usually the more risk you take, the more return you will have, but not always. To see the Return vs Risk go to: http://i1223.photobucket.com/albums/dd52…
When I started in the stock market, I just jumped in. I was loss at times but I learned as I went. It would have been better if I would have read a book or something. I've been in the stock market since 1986, 24 years and I started in mutual funds. It's a good way to start. Usually a mutual fund has a group of stocks, around 100+, invested in different sectors, manage by a professional, which makes it's shares a little safer than if you own a few stocks of different companies and don't know how to keep up with their business. There are lots of different kinds of mutual funds that does not charge any fees to buy it's shares and they are called Noload Funds. There are also some funds called Load Funds that charge up to 5% of your investment. Most funds have trading restricting, you may not be able to trade more than 4 times a year. With stocks, you can legally make a (Buy-Sell-Buy) trades within every 3-4 days, in a regular account. But it will take about 4-5 days to make a (Sell-Buy-Sell). There is noting wrong with buying stocks but it does take more work to keep up with them and you should buy several different kinds to help protect your investment. For someone that doesn't have the time or the know how to pick good stocks, should buy mutual funds or bonds funds. Most broker websites sell mutual funds, bond funds, and stocks. You can find several good brokers that charge $8.00 and under, per stock trade and no fee on Noload Funds. Most broker websites have good research tools. Some popular broker websites are Fidelity, TD Ameritrade, E-trade, Scottrade and others. I think you need a min. of $500 (some sites $2,000) to open a broker account.
If you want to follow and learn from a retired individual that has 24 years of stock market experience, click my pic and read "About Me".
Shares of stock is what you would buy and sell to make money. You do that through a stock broker. $1,000 may not be enough to open an account with a stock broker. Or you can invest in mutual funds through a mutual fund family. You buy it at a price and sell it at a higher price or you sell short at price and buy it back at a lower price to be profitable. You need to position size through money management and not load the boat on one issue. And use stop losses for risk management. There is no guarantee you will make money.
You will have to develop your trade plan or system that tells you when to buy and when to sell. You can use company fundamentals or stock price technicals or a combination of both. Your broker should have some educational resources and stock scanning tools. Check those first and then sign up for free at moneyshow.com and place topics in the search box to get the links to those free videos and podcasts for you to watch and listen.
Invest it in Disney stocks. That's a safe stock to invest in.
