Feb
25

I am a college student and im interested in investing money in stocks. What should i do to start?

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What must I do to invest money in shares?

Categories : Investing

7 Comments

1

Read books on investing conservatively and prudently such as Warren Buffet, Benjamin Graham and Phil Fishers books.

Then once you gain a fundamental of how to invest paper trade to ensure that you don’t make mistakes when trading real money.

Many people will advise you its as easy as opening an online account that’s the easy part the hard part is increasing the value of your investment without losing you shirt.

2

stock investing for dummies

3

U should absolutely follow my stock picks as i am extremely accurate with the stocks I pick. Right now if you need a good stock to make money on buy some put options on ISRG or go short ISRG.

4

Just a heads up, “Damien” is a scam artist. I’ve seen several software packages that claim to “analyze” the markets and pick the best stocks, and in the end it ends up just “picking” stocks fed to it by the scam artists.

Usually the scammers will buy a lot of the stock and then a couple days later show it on their software. Thousands of people buy it, pumping it’s price up. Then the scammer sells, and makes money.

His own overinflated purchase days earlier means the graph will appear to have gone up when he said it would and back down, but the only winner is the scam artist.

5

You can try to invest on Prosper, which is a P2P lending site. You basically invest your money on people. Rate is pretty good too.

http://www.prosper.com/join/ustfu

6

First do some basic research.

Good websites for beginners:

http://education.wallstreetsurvivor.com/beginner

http://www.investopedia.com/university/buildingblocks.asp

http://stockcharts.com/school/doku.php?id=chart_school

Select a brokerage firm.

Broker Comparison:
http://www.scottrade.com/online_broker_comparison/discount_brokerage_comparison.asp

Open a brokerage account and deposit funds into your account.

7

First of all, before starting to invest, you should have about $5000 of cash on hand. This will ensure that you have enough money on hand in case your investments do not perform well.

After that, you should read a few books on investing in stocks. A book by Burton Malkiel, called “A Random Walk Down Wall Street” is a highly recommended book for individual investors starting out in the stock market. The book will explain some useful concepts in investing. Also, if possible, you should read another book called “Security Analysis,” by Benjamin Graham. These books will provide some helpful tips. I have not read “Stock Investing for Dummies” or books of that kind but I am sure they will have useful information. However, the two books I have recommended are written by academics who have spent their lives conducting research into the stock market. Before selecting a company’s stock, you should throughly research the company beforehand. You should apply the concepts explained in the two books I have recommended.

After that, you should select a broker. Since you are a college student, I would recommend Scottrade. They require a $500 minimum as the INITIAL investment to create the account. Once the account is created, you can have any amount of cash in the account. They charge $7 per trade, which is the lowest of any broker for their requirements. While other brokers may have lower fees, they have high minimum balance requirements.

Finally, I would like to warn you that you may see times where your investment is losing money. I know from personal experience. I started investing in stocks in February 2009 and I got hammered in March 2009 before stabilizing. I strongly advise against selling on impulse. Think very carefully before buying or selling. Also, as you will learn if you read the books I have recommended, the stock market is best used as a vehicle for long-term investments. Best of luck!

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