Things You'll Need:
- Financial Calculator
- Internet Access
- Brokerage Accounts
- Paper And Pencils
- Computers
-
Step 1
Get educated: Read about stocks and the market, take a seminar or class on investing and review online financial sites.
-
Step 2
Develop financial goals and an investing and stock-picking strategy.
-
Step 3
Research individual stocks by reading annual reports, quarterly reports and other documents on file with the Securities and Exchange Commission. Look them up online at www.freedgar.com
-
Step 4
Invest in what you know. Consider the stocks of local companies with which you are familiar and in which you have confidence.
-
Step 5
Check out the holdings of some successful mutual-fund companies. If they are winning with particular stocks, perhaps you will too.
-
Step 6
Diversify. Avoid putting your money in just one or two stocks or, for that matter, in one or two industries.
-
Step 7
Use a discount brokerage to buy stocks if you are confident in your investment skills and have the time to do your own investing. You'll save on commissions.
-
Step 8
Buy stocks that you will feel comfortable holding for three to five years. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance.
Comments
billyme said
on 1/26/2010 I think this is a helpful article for people starting out in stocks. I think it's also important to keep depositing money into your portofolio constantly so that you keep having more money to work with. Also, it's important for people starting out to gain some direction and go on sites to get into the mood and get some ideas for companies. Then they can get some possible ones and do google research on them. Even I, after investing for quite a while follow http://www.smartdollar.info/ (smartdollar.info) for the highest-rated investing news on big companies so I get some ideas on where to take money out and where to put it in.
robinceo said
on 1/8/2010 Invest in Stock market and the secret is here reaveled.
http://www.investresource.info
2percent said
on 9/22/2009 Try breaking the rules. Invest all of your money in 1 stock, don't think of diversification, don't be greedy, make 2% once a week, and double your money in less than a year...every year, like me. It's definitely unconventional, but the way I do it is virtually risk free. I don't want to lose a dime of my money, since that is what I will retire with in 3 years when I am 35. Then I'll live off of the 2% interest every week.
Robert
www.2percentcashcow.com
jamoon33 said
on 3/2/2009 Of all the stock market games I have tried, Forevex is the best. You will learn how the stock market works playing and having fun. Invest without any risk, totally free. At this stock exchange game, everything is ruled by the fame of the stocks. At forevex quotes athletes, politicians, actors, musicians, brands, etc... Buy and sell stocks and become an expert investor. Gain neteuros in this stock market game and exchange them for amazing gifts, real money or prizes.Check the game: http://www.forevex.com/en/
Yazmyn said
on 9/5/2008 Well the easiest & cheapest way to get started is through direct investment plans or DRIPs. There's no need to open up a brokerage account, which usually means that you need to have at least $1000. You can do it yourself just as easily. Go to www.directinvesting.com and the stocks that you want. They'll open the accounts for you...its working for me!