Best way to get into the stockmarket?

[QBert]

Hey,
I'm looking at putting some money into the stockmarket. i was woundering if anyone could tell me the best way to do this. Other members in my family have put there money into funds however i want to choose what stock and when to buy and sell.

Thanks heaps!

QBert

 

[jmweb]

How old are you? How much do you know about the stock market? Where are you from?

My first thoughts are why not contact your family and see where they invest at?

 

[Andromeda]

Interesting thing to do... I once watched a TV show giving tips on how to be stable..
People should always have their passive and active income...

 

[yandig]

From my article "Dumb Money":

"Many people have, at one time or another, taken some of their hard-earned funds, and decided to put them in the stock market. These well-meaning individuals either acted on a tip they saw on CNBC, or actually believed one of those crazy faxes/emails that said XBXB @ $0.17/share was the next Microsoft. These people thought they were being smart, but they probably just ended up lining the pockets of brokers and mutual funds when they lost money on their 'investment'. I know, because I've done it, too.

Part of the problem we face is that we are big underdogs in the investment channel. We, as individuals, have access to hordes of information. Yet, we don't even scratch the surface of our knowledge potential. We invest without carefully reading financial statements and company reports, looking instead to message boards and TV stock 'experts' for guidance. If you own mutual funds, do you know what companies those funds are holding? Most people have no clue.

Investors can be lumped into two categories: smart money and dumb money. Most individuals are 'dumb money'. Smart money regularly beats the market, and includes many mutual funds. Dumb money generally loses. Dumb money often over-reacts to market pressure.

There are a few ways to avoid becoming 'dumb money'...

First, forget about short-term investing. If you plan to rapidly buy & sell stocks, statistics show that, on average, you will lose, and maybe lose big. Long-term investors don't easily get scared off by market fluctations, 10% price swings, or a bad earnings report. Plus, they don't have to pay the transaction fees over and over like the day traders do. The best way to ensure that you will make money investing is to find your initial investment vehicle, and leave your money alone.

Second, don't go along with the crowd. Example: Walmart's stock has been a great investment over the last 5 years, right? Wrong! It's actually lost about 5% during that time. Yet, if you watched CNBC, you'd swear that Walmart was the best thing since sliced bread. Find a strategy that makes fundamental good-sense, and don't throw your money into a stock or fund because it's a big name. Finally, diversify! If you're in it for the long-haul, you need to make sure that some really bad news doesn't keep the kids from going to college."

If you want more info on money management, check out my finance blog www.stockmarketplus.com or pm me if you have specific questions.

Good luck in your endeavors,
Scott

 

[lextalionis]

In a Nutshell:
Research SPY etf's--Index funds that trade like stock. Later, when you understand a bit more, look for an international equity index etf for diversification. If you have a long time until retirement, add a small cap, growth, or reit fund for high risk/return, but only after the two listed above.

Try to dollar cost average over a long period of time to achieve a median in your buy price.

Sharebuilder.com is a good way to do this but the $4 per transaction may be steep for small purchases, and a per trade fee might be better depending on frequency and investment amount. Only invest what you can afford to lose.

MAKE SURE YOUR TRADER DOESN"T HAVE INACTIVITY FEES!

Let cook for 10-30 years.

This shouldn't be considered as financial advice, so do some more research.

 

[zaros64]

how old do you have to be to trade on the stock market?

 

[Ben42]

how old do you have to be to trade on the stock market?

Pretty sure you need to be 18 to open a trading account by yourself. Otherwise your parents can get you one and then you could probably trade on it. Although I'm sure there are rules you should be 18 since you are entering into a sort of contract with every trade.

If you want to see how you'd do I always recommend using a Stock Market Simulator (Like the one in my link) .

This way you can try is out and get a feel for the market before you spend/risk any real money.

Good luck!