How to get started on investing stocks? - Yahoo! Answers
  1. Home >
  2. All Categories >
  3. Business & Finance >
  4. Investing >
  5. Resolved Question
Abc Abc
Member since:
November 23, 2009
Total points:
335 (Level 2)

Resolved Question

Show me another »

How to get started on investing stocks?

I would like to invest a little bit of my money in stock and I need some help on how to start. I dont really know anything about it so help me out and be detailed. Thanks in advance.
  • 8 months ago

Additional Details

I would like to invest about 3,000$

8 months ago

I would like to invest about $3,000

8 months ago

A nobody by A nobody
A Top Contributor is someone who is knowledgeable in a particular category.
Member since:
March 07, 2008
Total points:
23825 (Level 6)
Badge Image:
A Top Contributor is someone who is knowledgeable in a particular category.

Best Answer - Chosen by Voters

Before you enter into any transaction, you should know what you are doing, why you are doing it and how to do it. 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,
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
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success 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. If any site offers free information, take it.

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/, http://www.tradingstocksguide.com/tradin…

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.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.

Good luck on your journey

Source(s):

from the street
  • 8 months ago
60% 3 Votes

There are currently no comments for this question.

Other Answers (4)

  • Hoa N by Hoa N
    Member since:
    July 28, 2006
    Total points:
    8851 (Level 5)
    I agree with the first person answer you question, What he said was so true. I just want to add the couple points to that.

    To avoid being scam, you have to learn how investment work through educated yourself.

    Every Investment , you have to analyze in 4 step processes, because if you missing ones, your investment would be a great jeopardy:
    1/ Fundamental analysis (learn how macro economic, economic calendar, PPI, CPI, leading economic indicator, employment number, how cash flow of a company, balance sheet, income statement, OPEC, presidential election cycle, The FED interest rate cycle). TELL YOU WHAT TO BUY

    2/ Technical analysis ( how the charts work, chart pattern, market indicators, momentum indicators, japanese candle stick charts) technical analysis tell you WHEN to take profit/ Buy in opportunity

    3/Sentiment Analysis/ Contrarian Analysis( teaching you avoid the CROWD mentality, meaning when everyone buy, YOU sell, when everyone Sell, you BUY): Check out the VIX indicator, BULL/BEAR ratio, PUT/CALL ratio. These ratio will give you the best information when the market top or bottom.

    4/ Seasonal Cycles: how to use : SELL in May, Go way", everything in this life involves cycle. Stock Market is no exception. Learn how presidential election affect stock. Secular Bear or Secular Bull market. If you can do that, you will win over time with patient because you know you will make the right choices with the best infromation you have

    couple book you should check out:
    Stock Trader's Almanac by Jeff Hirsch
    Technical Analysis for Financial Market by John Murphy
    All About Market Timing

    couple websites:
    http://www.stockcharts.com
    http://www.incrediblecharts.com
    http://www.pring.com
    http://www.market-harmonics.com/free-cha…
    http://www.bullandbearwise.com/
    http://robertjmiller.us/sentiment.htm
    http://www.sentimentrader.com/

    I am in mid-30, but my 401k is about 100,000.00. My Roth IRA is 21,500.00. My cold cash is 30,000.00. Even in this recession , I feel less stressfull . No debt except my mortgage.
    I am not showing off but just pump you up. If I could do it, so can you. You have to learn the right way. Educated yourself. Do not let nobody making decision for you but yourself.
    Good luck. Last Point, AVOID AS MUCH DEBT AS POSSIBLE.
    • 8 months ago
    20% 1 Vote
  • Christian by Christia...
    Member since:
    January 08, 2010
    Total points:
    109 (Level 1)
    i think this is the best place to start with

    Source(s):

    http://www.secrettradingmethod.com
    • 8 months ago
    0% 0 Votes
  • Joey Case by Joey Case
    Member since:
    December 04, 2009
    Total points:
    368 (Level 2)
    If you are a beginner in stock trading, you must be consistent and gain experience and knowledge and confidence that will enable you to cross over from stock trading.

    For more information about this topic, check out this article:

    Source(s):

    • 8 months ago
    0% 0 Votes
  • Max M by Max M
    Member since:
    October 08, 2008
    Total points:
    37087 (Level 7)
    If you're a rookie in investing or stocks, go to

    www.finance.yahoo.com.

    Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

    That's the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won't lose money. It's just that these stocks are the best. They pay good dividends too.

    Then once you're comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They're excellent for beginners.
    • 8 months ago
    20% 1 Vote

Answers International

Yahoo! does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Click here for the Full Disclaimer.

Help us improve Yahoo! Answers. Send Feedback