How do i start investing in stocks?

Question by Helloman: How do i start investing in stocks?
I want to start investing in stocks, but i have no idea how to. I heard its good money, but i don’t understand where i need to go to start trading stocks, and how old does one have to be to make an account for investing in stocks. Also could you explain to me what a mutual fund is and the basics of investing in stocks? Thank You.

Best answer:

Answer by Jadzia Dax
If your employer offers stocks that is a good start.

Many companies are offering low cost stocks also.

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10 thoughts on “How do i start investing in stocks?

  • November 17, 2013 at 2:34 pm

    Understand to stock market is very difficult for beginner you should start with large cap stock never predict market just invest and when you get more than 20% profit take it.

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  • November 17, 2013 at 3:33 pm

    Go to your local library and borrow a few books on the basics of investing. This will give you a good and free education.

    Be well educated before you try to enter the market. Novices usually lose money to the old professionals who have been doing trading for many years and have all the tricks of the trade at their control.

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  • November 17, 2013 at 4:17 pm

    You’re right, investing in stock can make you a lot of money if you’re careful. I’ll walk you through how to do it.

    1. First, choose your stock. I suggest you go online and look up some stocks. Find a few that sound promising, then make sure you research them thoroughly. (I’ve got a hunch that all kinds of green technology is going to blow up in the next few years, so I’d start there.)

    2. Find a stockbroker. Your bank might operate as your stockbroker, or you could look up a stockbroking company.

    3. Tell your stockbroker what stock you want to buy. He/she may give you some advice; you should take that advice into consideration. Once you’re absolutely sure you want to buy that stock, tell him/her. Then you’ve bought stock.

    You can be any age to buy stock. Also, a mutual fund is where a lot of people pool in their money to invest.

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  • November 17, 2013 at 4:55 pm

    When you start earn money right now start your investment because it also work for you after retirement you stop work but your investment work for you by earn money.

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  • November 17, 2013 at 5:10 pm

    To invest in stocks all you need to do is:
    a) Be 18 (if under 18 then you need your parents to cosign)
    b) Talk to a stock broker to invest your money
    c) Have money to invest

    And that’s it, but that doesn’t mean you will make money in the stock market. In this case I will assume you want to make money so there are extra steps that need to be taken.

    To make money from stocks you need to:
    a) Find a company that is either starting out or is in an economic slump
    -the stock prices should be low at that time
    -a good example is Ford way back during the economic crisis and stocks were under $ 2
    b) Research the company
    -who is the ceo?
    -does the ceo have experience with running a business?
    -how good is the companies business plan?
    -will the company thrive or go under?
    -these are some good questions to ask. When I bought my Ford stock, I knew the government wasn’t going to let Ford go out of business and I researched and saw that the new ceo that was put in charge was put in situations like this before and saved companies from going out of business.
    c) Decide how much you will invest
    -how much can you afford to lose?
    -how strongly do you believe in the company?
    d) Talk to a stock broker
    -fees will be charged with investing in stocks
    -the lower the fees, the more you can invest
    e) Watch the stock market and check your stock price every day
    -when you buy at a low price, you can sell at a high price for bigger profits
    -don’t gamble for the jackpot! earlier this year, I could have sold my Ford stock for $ 18 share making a big profit considering i bought the stock at $ 2 a share and invested $ 1,000 for 500 shares. I was going to wait for it to hit $ 20 a share but it dropped quickly to $ 14 a share and now it is less than $ 10 because of the crisis in Europe and the amount of Ford cars sold there dropped.
    f) If everything was done correctly, talk to your stock broker to withdraw your money into your savings account.
    -this is where you make your money
    g) If things look like they are headed in a bad direction and your company might go out of business, talk to your stock broker quick and with draw your money before you lose all of it!
    -when things settle out at a lower price you can re-invest if you think the company might recover.

    Here is a good link on mutual funds

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  • November 17, 2013 at 5:32 pm

    Most beginners overlook the best help available to them, because this question is one of the most-oft asked questions in this section.

    Just type “how to invest in stock market” in the Search Y! Answers box at the top of your screen and you’ll get lots of Answers, or type “how does stock market work.”……

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  • November 17, 2013 at 5:53 pm

    Direct share market you need demat account you another option is mutual fund you start SIP for invest little amount every month.

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  • November 17, 2013 at 6:30 pm

    Stock market always well come a beginner i like your spirit to enter in stock market prepare yourself before start investing check some basics. as per my experience

    Never invest more what you have.
    No over trading
    Never follow any tips research your self or follow any one person.

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  • November 17, 2013 at 6:41 pm

    Mutual fund is better way to invest in stock market for new comers.

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  • November 17, 2013 at 7:15 pm

    Before you do anything get a book on Investing For Dummies and that will be a good start. Don’t just jump in without any background. You will make mistakes if you do.

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