<p>OK now that I have your attention.</p>
<p>I would like to know how to start investing in the stock market. I mean...I don't know what I'm supposed to do. I don't even know the basics. Like what age do i have to be and do I need an account of some sort. Any information would be grateful. The only reason why I want to invest is to eventually use it to pay for my college debt.</p>
<p>I suggest reading up on a few books/sites (there are tons of self-help sites on the internet) before you start burning your or your parents' money. While the stock market can be lucrative to those who are in the know, it would be very juvenile to think that one could make an overnight fortune from the start. From what I see, you have no knowledge of even the banking side of investing (which can be very complicated), much less the actual investing itself. </p>
<p>However, one piece of advice that I will give you in addition to conducting a huge armount of research before you begin is that you will need to fundraise a good amount of capital - ideally, you would need $20-50k; I wouldn't waste time with anything below $10k, but that's my personal opinion. Understand that a seasoned investor usually hopes for a capital gain of ~100% within two YEAR in all of his or her stocks (NOT the portfolio). So if you would like to double your investments, it may very well take a long time.</p>
<p>You may want to practice here before you start with the real thing:
<a href="http://www.virtualstockexchange.com/Game/Homepage.aspx%5B/url%5D">http://www.virtualstockexchange.com/Game/Homepage.aspx</a></p>
<p>One thing I want to emphasize.....DIVERSIFY DIVERSIFY DIVERSIFY. Usually for someone who's like 20-25 years old you do want to be pretty aggressive with your investments, unless you're in college. And MAKE SURE YOU INVEST WITH MONEY THAT ISN'T EARMARKED FOR FOOD OR OTHER NECESSITIES.</p>
<p>For a highly aggressive approach your portfolio should be something like"</p>
<p>50-60% high growth stocks or emerging market stocks (China/India/South America/whatever)
15-20% blue chip stocks (i.e. Citi, Exxon, whatever) these are usually highly established companies that pay dividends.
10% treasury/municipal/high grade bonds, CDs, money market accounts and other virtually risk free investments
10-25% cash in interest-bearing accounts (savings or interest-bearing checking)</p>
<p>But since you know absolutely nothing about the stock market and finance and investing, I suggest a slightly more conservative approach.</p>
<p>25-30% high growth stocks or emerging markets investments
25-35% blue chip stocks
20% treasury/municipal/AAA grade bonds, CDs, and other low risk investments
15-30% cash in interest-bearing accounts</p>
<p>Again, DIVERSIFY DIVERSIFY DIVERSIFY DIVERSIFY. You don't want to put all your eggs in one basket. People lose big time because they don't diversify.</p>
<p>I am not rich, but I would also like to get into the stock market. When I say I am not rich I mean I don't have 1k for me to invest let alone 10k. Say I invested 100 bucks in the stock market, would it be a "waste"</p>
<p>I am not extremely knowledgeable in the stock market, but I am pretty good with money or at least saving money.</p>
<p>well.....u never have comprehensive liability in stock markets (i.e. u can lose ONLY that much that u've invested--I don't think that happens a lot! Again, I'm not an Eco student.....) So, if u invest $100, u can possibly make a 'minor' profit (if any) but don't worry a lot of having 'waste' Just take ur chances and start investing!</p>
<p>Well Dank08, considering that the cheapest companies offer trades for $10 a pop (buying and selling counts as two trades), you'll be in debt about a week. Your summer savings won't be enough to make a profit, trust me! </p>
<p>
[quote]
don't worry a lot of having 'waste' Just take ur chances and start investing!
[/quote]
Precisely the philosophy that I want people to avoid. Do not "just take your chances." The stock market is lucrative because it is predictable, unlike other forms of gambling.</p>
<p>"don't worry a lot of having 'waste' Just take ur chances and start investing!"
Oh sorry for saying such an equivocal comment.......actually I just tried to clarify like it's not really THAT risky!</p>
<p>Never knew it was this complicated...</p>
<p>ha ha! (u r not wrong! I myself don't try to understand evrything abt eco! that gets complicated!)</p>
<p>Damn, I wouldn't be investing in the stock market solely on making money, but more on the learning experience and the excitement of following the stocks much like March Madness. If you pick right, you can win big(at least big to me).</p>
<p>How much do you need to start?</p>
<p>You can start with as little as $2k. If you're afraid of taking on the risk yourself, consider buying into a mutual fund. You buy the fund and the fund diversifies for you. But remember to diversify AGAIN even with mutual funds because they DO lose value sometimes.</p>
<p>lets say I work for 2-3 months and put in more than half of what i make into stocks... would that be enough?</p>