How do you go about buying stocks?

Question

A new company to the U.S. is forecasting big dividends within the next 3 years and has stocks selling for very low. I have no idea on how to take advantage of such opportunity. Where do I start in investing into this venture?

Answer 1

You can go to your local stock broker, or a better idea is to open a brokerage account with a company like Fidelity or Scott Trade or any number of large reputable firms. You will open a "shell" account and fund it, from there you can buy and sell stocks on line.

Use caution when reading about new companies who are just starting up and already projecting large dividends!

Answer 2

identify your investment style, including your long-term (or short-term) goals. know your risk profile, your time horizon, liquidity needs, and any other specific relevant info.

maybe try being an event-driven investor. you identify some macro type trend, like for example, all the rural people moving into the cities in china. so that points you towards investing in china. so you have a notebook w/a heading 'China'.....then you start to do your research and keep notes, and always refer to your basic tenets of your investment profile and needs.

Or keep notes based on sector. do you do fundamental analysis? yes, if you're in it for the LT. if you have a section in your notebook that keeps 'hotlisted' stocks ...have a column of important financial ratios that you always fill out to give you some perspective on how healthy these companies really are.

you'll get more ideas jsut from reading the WSJ and other good sources of info, but don't spend too much time worrying about HOW you're going to organize your investment thoughts, but rather WHAT your ivnestment thoughts are. spend more time learning than organizing. although organzing your thoughts is obv. important.

you can look up some small cap mutual funds, and then, on morningstar for example, you can look up their holdings. or also check on www.sec.gov for their filings which would provide some idea of what they're investing in.

there are more sophisticated tools out there also where you can screen by size, etc but they tend to be expensive. bloomberg is the best one out there but it costs like $30K a year.

Answer 3

Research and lots of it! It's your money you worked hard for, so spend it wisely! Good Luck!

Answer 4

Do your studies about the company and its promises. Learn more about the promoters and the history. learn more about the product and possibility of success. Trust your self and take the decision

Answer 5

Congratulations on wanting to get started with investing. Its the best way to building wealth. I would suggest that you open an on-line brokerage account. Since you are a beginner I suggest that you use Sharebuilder.com which was recently bought out my ING. It is the best for newbies. I would also pick up a book called " The Motley Fool Investment Guide" authored by David & Tom Gardner. You can get this book on amazon.com for about $10. Good luck let me know how it goes. I invest in the stock market and I have made a good sum of money and enjoy teaching others. U can do it !! Get started today u will never regret it. Be sure to educate yourself.