Anyone invests in stockmarket?
Nov 1, 2003 at 10:43 PM Post #3 of 19
How much do you want to invest? That will influence what the right choice is.

Also, do you know what you want to invest in, or do you just want to invest the best possible choice?

Finally, is this short-term, medium-term, or long-term (for retirement or to bequeath your heirs) investment?
 
Nov 1, 2003 at 11:02 PM Post #4 of 19
I don't have much money so I would like to start with something not too risky. I would prefer low but steady margin to the win or lose gaining. It should be a long term investment. I am looking for the kind of investment that is better than keeping my money in the bank. BTW,is there any other kind of bank investment that give you steady income which is better than the normal interest rate?
Thanks,
NEO
 
Nov 1, 2003 at 11:40 PM Post #7 of 19
My money is in saving and chacking account. But I use campus bank for coonvenient so the interest rate is very very low. Basically,my money is just sitting there.
 
Nov 2, 2003 at 12:22 AM Post #8 of 19
Perhaps a mutual fund investing in growth stocks would be a good place to start. Should be no-load (no charges to invest or withdraw) and have low expense ratio (the fund should not charge you a lot each year). Put in whatever you won't need for a couple of years and then pick an amount you can put in each month, rain or shine (dollar cost averaging). Then start reading the Wall Street Journal (at least the 1st page of each of the three or four sections) every day. Slowly what's going on economically and what investing is all about will begin to sink in. Take it from there; it's a life-long pursuit.

P.S. If you have any credit card debt or debt at that rate of interest, pay it all off first.
 
Nov 2, 2003 at 2:48 AM Post #9 of 19
A mutual fund is always a good choice.

If you take more risks you can make more money. I recently bought apogee tech for about 7$ a share and pulled out at 11.

I'm somewhat bitter since it is almost at 30 now though. But i still came out ahead. Mutual funds are the way to go though, since it is an inexpensive way to get a diversified portfolio. If you only want to invest 1k or so, go for a few penny stocks and then maybe some choice index funds. Best advice (during these times) is to be risk adverse and to not invest more than you can afford to lose.

Of course, you could always buy Grado HP-1000's for 900 now and sell them for 1500 a few years from now
evil_smiley.gif
 
Nov 2, 2003 at 3:59 AM Post #10 of 19
NEO, maybe you want to check out a ROTH IRA? My financial advisor told me two things when I get a job. 1: make a budget (yeah right) and 2: fund an IRA to the maximum. I already had some mutual funds, individual stocks, etc so I'm not sure if the IRA is more important than those.
 
Nov 2, 2003 at 8:57 AM Post #11 of 19
Guys, thank for your suggestions. But as I said I hardly know anything about the mutual fund or IRA stuff. Could you guide me a little bid more? I am looking for a job and probably won't get it easily so I need to save my money (still buy some audio stuff which is not good). I am just trying to gain some steady income which is better than almost zero interest rate on my bank account.
NEO
 
Nov 3, 2003 at 4:32 AM Post #13 of 19
it sounds ridiculous. But I bought "The Complete Idiots Guide to Investing Like a Pro" and it really helped out a lot and explained things very easily. I too kow very little about money other than it's easy to spend. It's good that you're wanting to invest early--you can never make up for lost time because everything grows exponentially.
 
Nov 3, 2003 at 5:18 AM Post #14 of 19
One of my favorite investing websites -- which is fun, free, and educational -- is The Motley Fool. See www.fool.com I think you will get a kick out of it. I've been teaching accounting, law and finance courses at the graduate levels for 20 years now (oh how the time passes) and have never run across a better source for newbie investors.
 
Nov 3, 2003 at 6:04 PM Post #15 of 19
I actually used the Motley Fool as well. From the sound of it you are going to be one of those pattern players. You want to play the larger picture which is more easily quantified. Me personally I like to play individual companies. I try to base my investments off of a variety of factors even taking into account the psychology of consumers and other investors.

You are probably thinking, why psychology?? Well while some people try to quantify the stockmarket from top down, by analyzing results, I like to take a peek at the foundation of the matter. I like to look at it from the bottom up.

Everyonce in awhile psychology creeps into the top down perspective as well, Ive heard the phrase "Investors are scared," many times. Well, my method is a bit more complex, I try to take into account actual psychological phenomena. Since I've taken some courses in psychology this is natural for me.

It's just an idea and so far it seems to be working for me as an addition to the more common practices, though, certainly it needs to be field tested a bit more.
 
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