Question:

Where should a beginning investor invest? CDs? Stocks? Foriegn currencies?

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Let's say I have about 3000 dollars to start, and I don't know anything about anything. Should I go to Janus and buy some mutual funds? Should I go to the bank and put it in a sure thing CD?

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  1. Mutual funds through your savings bank. They're relatively safe as long as you leave the dollars in the funds. You start shifting the dollars and you get struck with fees at every angle and the funds adviser is no longer your buddy.


  2. It depends on what kind of risk level you want to take, and what you know.

    If you don't want to learn about investing and want something 100% safe, put your money in a savings account or government savings bonds and you will get a guaranteed 2-4% each year.

    If you want to take a bit more risk but not think about it, invest in bonds or mutual funds.

    If you want to take control of your own investments, you will need to do a bit of reading and learning, but not a ton. If you enjoy it, it will be easy. Then you can invest in stocks and forex (foreign currency exchange) ONCE YOU KNOW WHAT YOU ARE DOING. That's the important part, you must understand first before you throw all your money in.

    With stocks you can make 10%+ per year with very minimal risk, with forex you can make over 100% per year but it's a bit more risky

    So for low risk - on $1,000 you will make $20 per year

    Medium risk - a few hundred dollars maybe

    Advanced, self-managed finances - Potentially double your money each year consistently.

    http://yarcofin.wordpress.com

  3. It really isn't about 'beginner' or 'intermediate' etc. It's more about the level of risk you are willing to take. If your young, your better off investing in stable stocks. If your old and near retirement, it's advisable you invest in bonds and CD's.

  4. Trading in foreign currencies is not investing, it's speculating so I wouldn't start there. Individual stocks are too volatile and you can't diversify enough with the money you're talking about so I wouldn't do that. CD's are savings, not really investing. I'd start with mutual funds. I am invested in Janus and T. Rowe Price. Good luck.

  5. Well the amount is small.But diversification is always the best rule to investments.So avoid for time being forex as is very risky.Also a CD is not an investment.Just gives you interest.

    The problem is that you cannot diversify with many stocks say buy 15-20 stocks of about 150 USD per stock,as you will pay a lot of commissions.

    So try to invest in a few not just one mutual fund,lets say 3 of about 1000 USd per mutual fund to get a mixed diversification.

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