How do you start in the stock market?

[HLP]

I am a completly new to the stock market game and I was wondering how to begin. Where do I invest, what do I invest in. Where do I do research.

WHAT should I research!

Pretty much any beginners tips woud be MUCH appreciated. I think its silly though, high school teaches you how the economies of foreign countries opperate but dont lift a finger to teach you how to manage your own money.

[beerman]

Try some trading games first. Just use your favorite search engine, it shouldn't be hard to find one. Practice is important.

For actual trading, I would choose Ameritrade to start. Low fees so you can start small and change your mind often. Start small and give yourself easy targets. Also, if you are just starting out, put the majority of your money into a mutual fund. Use what you already know to choose which one, and let their experts deal with the tricky parts.

As for research, check the forums at Yahoo and Raging Bull for discussions, they usually lead you to good research. Clearstation at etrade is a good site to learn about technical analysis basics. Finally, don't forget the guys over at MotleyFool. They can help you develop your own research strategy.

That should get you started, but there is soooo much to learn. Most investors are still learning even after years of schooling and years of investing experience.

[Astrocloud]

You know, you have to pick a stock market strategy. You have to determine how disposable the money you put into it is. I have friends who treat the stock market like a giant slot machine. What this means is that they risk a lot of money in day trades.

The basic idea behind day trading is buy low and sell high. This upsets the stodgy old wise money rules of stock market trading because generally a buy and hold policy guarantees receiving dividends. But people love to speculate on the price of things.

Never buy shares over the phone from someone pitching a particular stock. Although the rules have changed and the powers have come down hard on some charlitans -you are better off reasearching a stock and picking it yourself. After all you are doing this (I believe) for the fun of it.

If you would rather play the safe money bet... then I would go with one of the commercial Mutual Funds offered by some of the Brokerage powerhouses. DeutschBank is a good one imho. You usually need more capital to start but it's always safe and you can put your money away and forget about it for a while.

I'm pretty opinionated on the subject so if you want to know anything else just ask.

[Blackthorn]

1) You can start with small sums of money
2) Try to always minimize your costs (comissions, taxes, etc).
3) Routine investing (dollar cost averaging) pays off. No question about it.

http://www.dripinvestor.com/

You can buy stocks direct from the the company's transfer agent. It works pretty much like a savings account only the small amount you put into your "savings" account goes into a share purchase (typically monthly). Costs are low so more of your money goes to work for you. Some of these plans are even free!

I've been a dividen reinvestmen plan investor for 14 years now. It is one of the BEST financial decisions I've ever made. Smalls sums really do add up to large sums over time. There is no better time than today to start.

do you reccomend starting off in some penny stocks in ameritrade? any stocks symobls you know worth checking out

[Aletheia]

So http://www.ameritrade.com/ is the best for online stock buying and management?

[Warf Rat]

Please do yourself a favor and try to remember wether you buy mutual funds or stocks, never marry them.
When picking a stategy, you must have an exit plan. If you have gains that make you happy, who cares if the stock goes up further, sell it and find another. On the other side I know to many people that won't sell losers because they think that they will come back someday.
Decide what you expect in return for the risk your taking, and when you achive that, get out. You also need to take emotion out of it, love your gains, don't get greedy, and sell your losers, don't think that it will come back, sometimes they don't.


Good luck !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[BigBlueWrecking]

Get real advice from a pro. Everyone is always worried about fee's or commisions, but I would rather pay 50 bucks to make 100 than do it on my own and make 20 (or lose). Everyone thinks they can invest on their own, but would you perform surgery on yourself? Would you act as your family's dentist? It is not a game, and if people are smart they can accumulate wealth for their family. If they go into it thinking they are going to "play around with some cash" they are idiots and should lose everything. They do nothing but hurt the overall market.

[dawiz73]

Here is the scoop:

1. Dollar cost averaging only works if the stock goes back up. If it keeps the downward trend, you are screwed.

2. Make sure that you diversify. There were many people who bought all tech stocks in 2000 who retired to day trade and are back in the work force starting their lives over.

3. RESEARCH RESEARCH RESEARCH!!! Know about the companies that you are buying, what they have their fingers in, and who and what their executives are doing.

I could give you a million of these, but three should do for now.

[Stompy]

What I don't understand is how you make money.

Let's say all the stock you pick are good stocks, and you invest 1000. 50 years later, that becomes this ENORMOUS amount. How?

If I buy 100 shares of something that's $10, isn't my investment forever based upon the value of the stock?

In order for me to make $1,000,000, the value of the stock would have to be $10,000, right? Not exactly.. and that's what I don't get.

Where does the exponential growth come into play?

[BigBlueWrecking]

Reinvesting dividends is one way. So are stock splits and other things like that. Good companies grow and that makes the stock price grow.

[sailor]

Originally posted by Stompy
What I don't understand is how you make money.

Let's say all the stock you pick are good stocks, and you invest 1000. 50 years later, that becomes this ENORMOUS amount. How?

If I buy 100 shares of something that's $10, isn't my investment forever based upon the value of the stock?

In order for me to make $1,000,000, the value of the stock would have to be $10,000, right? Not exactly.. and that's what I don't get.

Where does the exponential growth come into play?

Well, hopefully the value of the stock increases--sort of like how, I dont know, some cars' values increase. Only its not tied to age necessarily

Also, like BigBlue said, re-investing dividends. Stocks pay dividends, which are a portion of the company's earnings. If you reinvest this, your ownings can go up.

Stock will also sometimes split, basically meaning the company is making more shares of stock--so your ten shares may now be twenty shares. If the price continues to go up, you make more money.

Look into index funds. You may also want to read some of Burton G. Malkiel's books--he has some great insight into the stock markets.