Whats the smartest way to invest in stocks?

Question

Whats the smartest way to invest in stocks?

Answer 1

Know what you are doing,

know why you are doing, and

know how to do it.

The are four major concerns that are needed to be addressed to be an investor/trader

1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place.

4 – A full and complete understanding of the rules & regulations of the industry.

Without the above in place before you start your investing/trading program, you will never be a successful investor/trader.

Answer 2

by asking random people on yahoo answers who cannot prove their credibility. besides that, I'd say close your eyes and point at the stock section in the newspaper... put all your money into whatever you point at. That's what I did and I made millions on Enron and pulled out before they collapsed

Answer 3

Buy mutual funds, which are collections of stocks and not as volatile because your risk is spread out across several categories of companies/industries.

Answer 4

The smartest way to invest in stocks is to be smart and know what you are doing.  First, you need to read some investing books or check out some online tutorials.  My favorite web resource is Investopedia ( http://www.investopedia.com/ ).  It's a great website to learn about stocks and investing in general.

Next, you will need to find the best broker for you.  A full service broker will give you advice and guidance.  However, they tend to cost a lot more than discount brokers, where you are required to make all of your decisions.  I personally prefer discount brokers because they are cheaper and I like to make my own decisions.

I currently use Firstrade ( http://www.firstrade.com/ ) and I have been very happy with them.  They are cheaper than big name brokers such as Etrade, Scottrade, Ameritrade, and Schwab.  They have excellent customer service and their website is very easy to use.  I've used them for quite awhile now and I would definitely recommend you to check them out.

Answer 5

still mutual funds

Answer 6

ING direct has a real neat program in which you can invest small amounts (min $50) everymonth and it builds up your own portfolio. its a smart way to start your long term investment porfolio. there is a very small fee and its all automated. if your a little more experienced you can pick you stocks, bonds, or cds. if youre just beggining then it really helps you based on what your trying to do with your money. it creates diversified profile so your risks of loosing money are lowered.The website is Sharebuilder.com

Answer 7

Listen to the first answer, also...I recommend an online brokerage firm that has good beginner qualitys {like tutorials or an easy to understand set up}, i use zecco, better then schwab, etrade, etc. they are the only ones with free stock trades, no minumums..all the others will charge you fees for trading, but compare and see for yourself. Good luck and happy investing!

http://friends.zecco.com/r/a7a2877caab81...