Is investing in stocks a good idea for a beginner with 5K ?
I am new to stocks, never invested or brought any stocks before.
I have around 5K cash.
Is it good to get some stocks with this 5K ?
1) How to buy stocks ?
2) Which stocks are good ? where there is a better yield for sure ?
3) Can I buy stocks myself online ?
4) Can I buy and sell my stocks anytime online ?
If you’re a rookie in investing or stocks, go to
www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
Comments
1. sharebuilder.com, scottrade.com, etrade.com are a few places
2. Individual stock picking is very risky. My opinion is that it’s better to buy mutual funds instead. They all have some degree of diversification and are professionally managed at a low cost.
3. Yes
4. Yes. When you buy or sell a mutual fund during trading hours, the price you’ll get is what it settles at at the end of the trading day. Stocks are bought and sold at their price the instant you place the order.
Before buying any stocks or mutual funds, you should look into setting up a retirement account to take advantage of tax benefits. Does your employer offer a 401k or 403b? If not, you should open up an IRA. It would be a good idea to seek a financial planner to learn more.
References :
Experience in the financial planning field
1. Open investment account (ie Etrade, Scottrade). I personally like Foliofn (folioinvesting.com) because you can trade fractions of shares at lost cost.
2. Depends on your time horizon. Consider long term (a few years). I think PAYX is a really good conservative starter stock; it has a nice dividend paid (quarterly). But don’t expect quick jump in stock price. Be sure to activate dividend reinvestment.
3. Yes. See #1
4. As long as the market is open. See #1
Stocks are good especially if you are young. However, don’t invest if you think you will need the money anytime soon.
References :
Start with google finance to learn and confine yourself to paper trading in the beginning so you don’t lose your 5k. Just when you think you’re ready to invest for real, spend a few more months learning.
References :
It’s a good idea to use the $5k to start your stock portfolio.
The sooner you start, the better you’ll do.
If you invest an additional regular amount each month, you can take advantage of dollar cost averaging which means you can definitely get a higher return than the market average.
You can do everything on-line, but do some careful research on the internet before choosing a broker.
Oh yes, you need to buy the right stocks too, but that’s another story.
References :
Hey, why don’t you try stock robots?
I’m assuming you know what I’m talking about. If not, let me take a second to fill you in.
There’s a site on the internet that claims to have invented a robot that can pick winning stocks. I was skeptical at first but I tried it. And I SWEAR it’s the BEST investment I ever made! I’ve made $47350 so far since I started a few months ago.
The best part was I threw my resignation letter at my boss’s face and showed him the middle finger.
Check it out here: http://whit.me/PennyStockProphet
It really works and guarantee to work. Read this report to learn more:
http://www.pennystockprophetreviews.com/
References :
If you’re a rookie in investing or stocks, go to
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
References :
March 31st, 2010 at 1:35 am
Stocks are definitely a good investment.
If you only have 5k to invest, consider a high yield dividend stock and then enroll it in a Dividend Reinvestment Plan (DRIP). the dividends will be used to buy more shares. Over a long period of time, this technique can be very powerful in helping you create wealth without a lot of continued investing.
You need a broker to trade, but you can do it online with sites like ETrade or Scottrade. And, Yes, you can do it anytime.
References :
step-by-step to trading online:
http://www.ehow.com/how_5289063_buy-sell-stocks-online.html
dividend stocks:
http://www.ehow.com/how_5335423_create-wealth-dividend-stocks.html