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Question: How do i began investing in the stock market?

(Posted by: illfindmelater on 2010-09-03 00:08:09)

I'm 22 and want to try my hand at investing a little in the stock market. I'm thinking like $200 or $300 just to do it and see how it all works. All the online sites want thousands of $ to open an account. Any suggestions on how I should go about it? I don't want to wait until I can put a couple thousand into an account, I'm a college student and right now that is where most of my money goes so I would really like to just invest a couple hundred, because I think the best way to learn it is to just do it. I have been reading about investing and the stock market and educating myself about it. Pretty much what I'm looking for now is a way to invest just a small amount of money so that I can go through the process and actually see how it works. I need somewhere that will allow me to open an account with just a few hundred $'s.

Posted by: Trevor on 2010-09-03, 00:29:44

First of all, LEARN the basics and don't try to compete against the professionals... I was in your shoes a few months and lost a lot of money when I tried to trade on my own. I started trading things like crude oil, and then stocks like GOOG and AAPL... These are the stocks that the big boys play, and you will never win playing against them. It is a well known fact that over 90% of traders fail and many go bankrupt, and look at the poor returns you would have made if you invested in the stock market over the past 10 years. As for brokerages, there are many out there. I don't know if $300 is worth it, but brokers like Sogotrade, ThinkorSwim, or E-Trade are reputable and are good starting points. Check out superstarsoftrading.com. This guy has put out a great FREE 150 page e-book that puts stock trading/ investing into perspective for us little guys. FYI, I am not affiliated with him, just think his book is a great read for newbies.

Posted by: Caveat Emptor on 2010-09-03, 06:01:16

You begin by educating yourself first. The best way to learn, in this case, is NOT to "just do it. " Read "Investing For Dummies " as a start.

Posted by: Kenny on 2010-09-03, 13:22:38

You can get a wide range of tutorials and educational materials at EWI through their free club..... This week they have a free week where you can get a full FreeWeek of access to EWI's Asian-Pacific and European Short Term Updates -- a combined $98/ month value! Now through noon Friday, Sept. 10, you can get end-of-day forecasts and analysis of the Nikkei, ASX, Hang Seng, Shanghai Composite, DAX, FTSE, CAC 40, Euro Stoxx 50 and including the Subscribers-Only Message Board, a weekly video update, The Basics of the Wave Principle 90-minute video, and subscribers-only reports. You see exactly what subscribers see for one full week with your complimentary access! blog.tradersdaytrading.com/ elliott-wave-free-week-asian-pacific-and-european-short-term-updates/ 09/ 2010/ .html

Posted by: Blazenskyy.com on 2010-09-03, 16:23:33

Go with opening an account at a discount broker such as Charles Schwab, TD ameritrade, Scottrade or Etrade. You might want to keep an emergency checking account their as well since the money market funds tend to pay higher than banks and offer ATM cards with free withdrawals at most banks. To begin pick a brokerage account that your comfortable with maybe close to your school or has a good adviser or customer service rep. The most important part about investing is cost. Always know how much does it cost. Make sure for example they have no opening or deposit requirements such as $5000 minimum balance or they might charge you. Second is choosing an investment for $200 or $300. I would probably just pick a mutual fund or Exchange trade fund such as Vanguard Total stock market fund or pick an S &P 500 index fund since your get an average of either the World stock market consisting of America, Asia, Canada, Europe and the Emerging markets or just an average of the largest 500 companies traded in the USA for the Standard & poor's index fund. Ask for advice on how to trade or do the tutorial training online reading the new user manual. Good luck and try opening a Roth IRA. It's great since you can withdraw your account when making your first home purchase without paying taxes or save for retirement.

Posted by: David on 2010-09-05, 04:05:26

How to buy stocks online? * You need to have a bank account with online banking facility. * You need to open a demat account. * You need to open an online trading account. It will cost you something like $100 dollars to open the above three accounts as a package.

Posted by: Party on 2010-09-06, 03:23:41

Hey there just check out the online trading platforms which help you to trade the markets with play money first and then check out real money. you can try gnutrade trding platform which allows play money and real money trading. You can gain knowledge about stock markets by reading few books like Day Trade Online Trading by Christopher A. A Beginner's Guide to Short-Term Trading... by Toni Turner High Probability trading by Marcel Link Study Guide for Come Into My Trading... by Alexander Elder The Complete Guide to Currency Trading.. by Jamaine Burrell The Five Rules for Successful StockMarket ... by Pat Dorsey

Posted by: fivethirty79 on 2010-09-06, 15:47:32

The problem here is that most brokerages have minimum deposits. i use tradeking.com. im pretty sure that there wasnt a minimum, or if there was, then it was maybe $500, which is only a little more than what you already have. you'll want to go with an online brokerage, to keep fees low. you have a good idea in the sense that you want to learn by doing it. just keep in mind that "learning " may also be the result of "losing ", so dont be afraid to lose a few bucks at the expense of gaining knowledge. i wouldn't recommend really reading any books or buying in to any systems. usually, they try to teach a system that really isnt that great. or they teach you how to read stats and charts, which would just be overwhelming at this point. also, no one really ever points it out, but keep in mind that you have to pay tax on your gains. this can be the biggest area you make a mistake in. also, you will have to itemize every trade on your next tax return, so keep good records or you'll be downloading page after page come next tax season. i would imagine that you are looking to day trade, since you are trying to get the ins and outs. i would suggest that you find a stock that is valued less than $5 so that your 200-500 dollars will still allow you to hold a quantity. if you go with apple or google, you'll only get 2 shares and 1 share, versus 100 shares of a $5 stock. the more shares you have to work with, the better your chance for a gain.