i was thinking of entering the stock market world and start investing, i have to admit that i am young and only in high school, but i have such an attraction to the stock market. i plan to use the money to save up and help pay my tuition for college. Ive been reading about stocks and researching but i need help in going into it.
How could i start ? What could i do as of now to help me invest properly, and what tips could you give me once ive started ?
thanks in advance.
You can do a general course in Economics to get the background of the industry and basic knowledge etc then an Investments course at college. You should also enlist a professional stock-broker to explain to you the current market trends etc and get them to explain and teach you about what they do. Also you could volunteer for work experience at a Brokerage Firm, you will learn all the jargon and many other things…
Stocks are rather complicated as there are so many influences, predictable AND unpredictable. Sometimes you do your homework and lose, other times you take a punt and purely get lucky… its not only skill but luck comes into the draw as well.
Make sure you have researched the financial reports for the companies you wish to buy shares in and reading the financial review daily is a must.
You can try your hand without it costing you anything by investing an imaginary $1000 into shares then assess how the shares are doing each day (plot values on a graph for each share so you can see if there is a trend and also know what influences caused the share price to go up or down). Set yourself a period of say a month then calculate how much you have made or lost on the original $1000.
There is also expensive share/trading software you can use for share price and trend predictions but the results are all based on computer algorithms (ie calculation of probabilities and you never really know which way a share will go unless you came back from the future!)
Another good idea is to invest in currency - when USD is strong, buy other currencies, when the other currencies are weak, convert em back to USD etc.. but you have to get the timing right.
July 1st, 2009 at 12:55 pm
The three concepts that I am going to suggest are complicated but you should be able to find lots of info on them. I will include links also.
1. Use Stock Index funds.
“Indexing” is a passive form of fund management that has been successful in outperforming most actively managed mutual funds. While the most popular index funds track the S&P 500, a number of other indexes, including the Russell 2000 (small companies), the DJ Wilshire 5000 (total stock market), the MSCI EAFE (foreign stocks in Europe, Australasia, Far East) and the Lehman Aggregate Bond Index (total bond market) are widely used for index funds.
2. Use Dividend Reinvestment Plan.
A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.
3. Use Dollar Cost Averaging
Dollar cost averaging is an investing technique intended to reduce exposure to risk associated with making a single large purchase. The idea is simple: spend a fixed dollar amount at regular intervals (e.g., monthly) on a particular investment or portfolio/part of a portfolio, regardless of the share price.
Good luck and I hope this info helps you acheive your goals.
July 2nd, 2009 at 10:13 pm
visit this site so you’ll be enlightened…
July 5th, 2009 at 7:27 pm
for starters you need to open a de-mat ac, try out the likes of icici, sharekhan, and a lot mpre, however Reliance Money the brokerage is very low.once u open the ac u can start trading and u can also get all the infor online…..
July 7th, 2009 at 11:42 am