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Question: What is the beginning process to start investing (stocks/mutual funds...etc)?

(Posted by: Priceless on 2009-10-10 12:41:53)

I am a recent college graduate and I want to begin saving to pay back student loans, and to buy a home. I am really clueless about how to start the investment process! What do I need know? Please HELP! Thanks

Posted by: Answer Me on 2009-10-11, 02:06:23

Pick up a few books and read up on stocks. Go for low risk, low yield stocks first since you are new at this. Read as much as you can and watch youtube videos and documentaries. If you find the topic interesting then open a brokerage account somewhere and start buying stocks. Don't open a forex account, I know lots of ads are out there promoting forex but trust me stocks are much better and safer to start out with. I recommend a low fee brokerage like sogo who charge $3 a trade and also give you 100 free trades to start so make your first few trades really small ones. Trust me when you are playing small for the purpose of learning then you don't need people charging you $10 a trade like most brokers do so sogo is good in that respect. Later if you become more seasoned you might want a fancier broker. And one last word of warning, never never buy and sell the same stock in the same day more than three times a week. It's the PDT rule. While you are learning about stocks also read up on options. That is a must if you want to be an investor. Hit amazon and look for 5 star reviews on books. It all depends on how seasoned your uncle is on the stock market so I cannot answer but here is a hint, if he is not a total noob get him this book on options: Option Volatility & Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg

Posted by: jlf on 2009-10-10, 12:48:13

Educating yourself is the vital first step. Two great books: "Personal Finance For Dummies " and "Investing For Dummies. " They are inexpensive, easy to read and great starters.

Posted by: NextMove on 2009-10-10, 15:41:14

Talk to a financial advisor I say. Unless you're actually saying you want to learn how to invest. I don't think that's really an option without decent economic knowledge though.

Posted by: Mathclues.com on 2009-10-10, 16:42:33

Great question. I'd recommend reading 'The Warren Buffett Way'

Posted by: Douglas L on 2009-10-10, 18:59:07

Pay off the loan first, then invest. Start with ETF's or index funds. Later buy stocks. Do lots of Research. Only buy stocks that pay significant dividends.