How so i invest in stocks as a student with low budget?? ?

Question

Everyone i have seen lately have been talking about stocks and they always tell me that "they had wished they started earlier". I dont want to be one of them. I am 21 years old and i have know clue where and how to start!

Can someone please help me? Where do i start? what do i look for? how much should i invest?

Any help is appreciated..

Thankyou

-Jay

Answer 1

This is a great time to learn.  If you just "jump in" it's no different than gambling.  If you take a year or two to learn the basics..... you'll save yourself tons of money (from bad decisions).

Start off with the most basic books;

Mutual Funds For Dummies

Investing For Dummies

This best bet would eventually be a dollar cost averaging into a "no load" mutual fund.  It's easy, automatic & you can do it with small amounts.

Before you do anything... make sure you understand "asset allocation".

If you're buying stocks.... make sure you also know "position sizing" and other important parts of money management in trading.

Money Management is just as important as picking the "right" stocks.

Good luck!

Answer 2

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

Trading For a Living by Alexander Elder

Mastering the Trade” by John Caster

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

The Disciplined Trader by Mark Douglas

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.

Make sure that before you make you first investment you know what you are doing, why you are doing it and how to do it,

Yes YOU have to work at it, there are no easy ways or shortcut, just study hard and you'll invest well.

Answer 3

I started when I was 18 with $500. Looking back I wish I did things different. Here is what I should have done, maybe it will help you out. If you want to buy stocks, unless you can buy quantities of 100 shares, don't do it. You should buy open ended mutual funds instead. These have no fees when you purchase them or maintenance fees. With mutual funds you can contribute $20 per month if that is all you have. You can find these on mutual fund company websites (Fidelity or Janus) and you do not need to purchase through a stockbroker. Joining a low-cost stock company such as Charles Schwab will save a lot of money when you do purchase stocks. They only charge $7 per trade vs. $100 from a stockbroker.

Answer 4

Go to Halifax and ask!!!!!!!!!!!!!