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How do I invest in the stock market?

How do I invest in the stock market?

Postby fay11 » Tue May 07, 2013 1:40 pm

Like who do I send the money to? Do i go up to a bank and say I want to invest in the stock market and send my money to the stock market or something. How does it all work? Where do I send my money? How do I send it to them?
fay11
 
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Joined: Wed Oct 03, 2012 7:42 pm

How do I invest in the stock market?

Postby manolo » Tue May 07, 2013 2:22 pm

VERY CAREFULLY and stay away from investing
through a bank. You best study up on the world of
investing before committing any money. This site will
get you started on how to invest.
http://www.ehow.com/topic_558_investing-for-beginners.html
manolo
 
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How do I invest in the stock market?

Postby ailbe » Tue May 07, 2013 2:57 pm

To get the best bang for your buck buy stocks directly from the company/s that your are interested in - forget the mutual funds and banks that buy and sell and then charge you every time that they do.

Here is a web site that gives you a lot of information - it will direct you on where to go.

http://www.market-barometer.com/buy_stocks_direct.htm

I started to invest directly years ago and I am still thrilled that every dollar I send them or have directly withdrawn from my account goes to buying shares of stock - even incremental shares - example:

If a share costs say - $100 and I send in $25 - it buys me a 1/4 share immediately! I have all of my dividends reinvested which buys more shares in the company - you can choose to have your dividends reinvested to buy more shares or you can opt to receive a check for those dividends.

You can opt for monthly funds deducted from your checking or savings account (you choose amount) or after the initial buy you can send what ever you choose whenever you choose - you will receive monthly statements and many have a tear off to send in your money if you opt for that.

Important thing here - EVERY dollar of your money goes to buying shares of stock and if you choose down the road to sell some or all the stock - the fee is so low.

Hope I helped.
ailbe
 
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How do I invest in the stock market?

Postby wyatt54 » Tue May 07, 2013 3:11 pm

If you want to buy stocks, you will need to use a stockbroker. I'm not sure what country you are in, but if you search online (say through Google) searching for 'stockbroker' or 'online stockbroker' or 'discount stockbroker', you should be able to find the contact details for some stockbrokers in your country.

If you get in contact with them by calling their phone number, they will then be able to help you from that point onwards. You could use a full service stockbroker, and get advice from them, but theie commission rates are a lot more expensive than the online/discount brokers. Some people also say the results from advice given from these expensive brokers is no better than if the person buying the stocks had done the research and made the decisions themselves. The full service stockbrokers might want you to buy & sell often, just so they make more commissions from every trade/investment you do.

You could find an online stockbroker through the internet (just search for 'online stockbroker'). They probably won't be able to give you much advice, but their websites often have a section for education, where you can read about how things work, how to buy & sell, how to place an order, how to use their charts & software, and how to do your own research etc.

In terms of "where do you send your money?"... the stockbroker (whether they are a full service stockbroker, or an online/discount stockbroking company) will tell you how to deposit the money. Basically, you will need to deposit/send money to your stockbroker/stockbroking company, who will then use your money to buy the stocks for you.

Many people investing in the stock market do not really know what they are doing when they first start. Learning as much as possible before you start is very important!

One thing that most people don't learn enough about is risk management. ie. how to keep your risks small. The best way to do this is to set a level where you will get out of your trade/investment if any loss starts getting bigger and bigger (because the price can move in the opposite direction to where you expected) - you will have to either be VERY disciplined if you're monitoring your investment and it doesn't go as expected (it can be very hard psychologically to take a loss), or you could simply place what is called a 'stop-loss' order when you first get into the trade, so that your trade/investment is closed automatically if the loss gets to a certain pre-defined point. This way you won't have to rely on your own discipline as much.

Another way to keep your risk small is to simply only put at risk what you can afford to lose. ie. keep the amount of stocks bought at a small level. This is sometimes referred to as having a small 'position size'.

Either way, learn as much as you can first, don't be greedy, and BE CAREFUL.
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How do I invest in the stock market?

Postby engelbert » Tue May 07, 2013 3:46 pm

You're going to need to set up an account with an online broker like Trade Monster, OptionsXpress, Etrade, etc. You'll buy stocks through their service and pay a service fee.

It sounds like you're new to this, so you may want to take some time to learn the ins and outs of investing before you drop money on this.

I recommend visiting www.investopedia.com to learn some basics. You're also going to want to do at least some basic research into what you're investing in. I recommend apps like Chaikin Power Tools and web sites like StockCharts.com.

You should also do a google search for "Free stock market simulator" - these will let you play around with fake money to see how well you do in the market before you get into it for real.
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How do I invest in the stock market?

Postby ager » Tue May 07, 2013 4:07 pm

Id recommend you do your research and studies on stocks and investing in general first. It should be noted that first you'd need a minimum of $5000 to open up a brokerage account before you can invest in any stocks.
ager
 
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How do I invest in the stock market?

Postby ben54 » Tue May 07, 2013 5:16 pm

Read some books and check out one of the TDAmeritrade, ScottTrade or Etrade websites
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