How do I get started in the stock market?

Question

I am 18 years old and I just graduated so I have almost $2000 to play with from my graduation gifts. College is being paid for but I would like to keep half or so to put away because I'm going away. I want to invest in Apple Computers (AAPL) now before the summer goes underway and people start buyin computers and the next-gen iPhone comes out.

Answer 1

18 is a great time to get started, however, it is very confusing if you don't learn the basics. By the basics, I mean you need to figure out a bunch of stuff about why you are investing (for retirement, to buy a car, or whatever it may be). If you are investing for retirement, you need to set a plan: When do you want to retire (what age), how long will you live after retirement, how much money will you need to sustain your lifestyle, etc. Take the time to set an objective and goals, it will help guide you towards a strategy that is right for you.

As far as Apple goes, that may be a great stock, or it may be terrible for your diversified portfolio. Don't get hooked on emotional attachment to stocks - by thinking a company is cool or such. Their stock already has the next new things built into their price. My point is this, what if sales don't meet expectations? The price will go down.

Good luck!

Answer 2

dont buy stocks cause you think the mext iphone will have good sales. Sales dont indicate profit margins and debt ratios of companies. You have to look at things like fundamentals of the company.

Other option widely used when no ideas left is to throw darts like a monkey at a stock report and buy the one it lands on

Answer 3

Read some investment books to get a feel for how the market works and start investing in small amounts.  I think Apple is a great company to start with for not only now but for the future.  You are young enough that you don't have to diversify your portfolio right away and buying just Apple is ok with the amount you are investing.  Good luck.