Can i buy stocks with little or no experience?

Question

im thinking of buying stocks but i dont have a lot of experience,where can i get information about stocks,do i need a broker and how much can an amatuer like me use to start?

Answer 1

Yes you can buy stock, but you should not.

You should never invest your money unless you know what you are doing, why you are doing it, and how to do it.

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by  William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners.

Other website that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/ http://www.investorshub.com/  http://www.1source4stocks.com/



Visit some of the more professional websites like Zacks - http://www.zacks.com/ Smart Money - http://www.smartmoney.com/  Schaeffer’s – http://www.schaeffersresearch.com/

Some of these web sites will have advertisers who are worth looking into also.  And remember, if they offer free information, get it

Educate yourself before you do any investing, if you don't your investing will prove to be very expensive.

Answer 2

stocks are not recommended for novice investors - too much risk most people lose money - start with savings, savings bonds, then mutual funds, then after you build a nice nest egg and you have some money you can afford to take risks with, then MAYBE consider individual stocks - check back in 15 yrs

Answer 3

can you buy stocks : Yes if you are 18

information on stocks: Anywhere, i use google finance in addition to scottrade.com

do you need a broker: Use an online broker, etrade, scottrade, etc

how much do you need to start:

    Well probably not very much, but if it is too little you will never make any money, most online brokers charge about 7 dollars per trade, so in order to buy a stock, then sell it you will pay 14 dollars.  The average return on a stock is 7 percent a year, so you will need a minimum of $200 just to break even theoretically.

    In order to open a margin account so you can short sell etc, you need a minimum $25,000 balance