Investing in stock market - getting started
As mentioned in a previous post, I recently read a book called “Stop Working, Here’s How You Can“. This book inspired me to start investing in the stock market for the first time. The problem was that I had no idea how to do it. Where do I go to buy stocks? How do I choose a good company? How does it all work?
I solved that problem by reading a couple of books on the stock market, these books talked about how to get started, how to evaluate the companies that you are investing in and what kinds of things to avoid.
The first thing I found out is that I needed a brokerage account. I also found out that there were different types of brokerage accounts. The more traditional option is the full service brokerage account where you get one-on-one guidance and advice from a qualified broker. These brokers will give you stock tips and even make purchases on your behalf. The downside is that you will pay hundrends of dollars in comissions for each trade that you make and there is always the risk that you are getting biased advice from someone who will benefit from your decisions.
Another option is to get a discount brokerage account which is more of a self serve type of service where you can buy your shares online. This only costs $29/transaction (sometimes less) but you have to do all of the research yourself. There will usually still be a lot of company financial infomation available to you with these types of services.
Since I am starting with a small amount of money, I decided that it would be best for me to set up a discount brokerage account. I did that through my bank and then found a stock that is currently paying an annual dividend of almost 14%, has a high growth rate, and has a long history of high dividend payouts. I am going to start with that one.
So now I am all set up. I have my discount brokerage account, I have $1000 ready to go and I have my company all picked out. Tomorrow I am going to invest in the stock market for the first time. I am so excited! I will let you know how it goes.
Are you Foxy? Subscribe to our Newsfeed!
[...] Read the rest of this great post here [...]
Pingback by make money online » Blog Archive » Investing in stock market - getting started — March 28, 2008 @ 1:32 am
I have also found the advice on Motley Fool to be very good. Being in the UK, I use fool.co.uk, but then there’s Fool.com for the US and Canadian part of the world too. They have some solid (and free) advice on investing that’s well worth reading.
Dan
Comment by PowerDosh — March 28, 2008 @ 6:50 am
I think we should do lots of research about the companies on which you are trying to invest because these days markets are fluctuating a lot.
Comment by Jon Muranko — March 30, 2008 @ 12:43 am
cant wait to see how’s the result. keep on posting!
Comment by erp — March 30, 2008 @ 7:12 am
does investing in the stock market really can make good money??? just concern because the stock market is always fluctuate rite???
Comment by erp — March 30, 2008 @ 9:05 am
Hey good luck with the stock market.
With the way things are going in the worlds markets at the present time i would not consider “investing”$1000
at this time .
Keep us updated.
Rich
Comment by rich — March 30, 2008 @ 4:24 pm
I won’t be able to invest in the stock market for a while - too much stress. I wouldn’t be able to sleep!
Comment by Dropship Supplier — April 2, 2008 @ 11:35 am
All the best with the Stock Market. $1000 to start…let’s hope it 10 bags!
Comment by Coffee Maker Guru — April 16, 2008 @ 2:31 pm
How are the investools? I heard they work pretty well with understanding the stock market and predicting it.
Comment by Colorado Trucking Schools — April 25, 2008 @ 12:19 pm
Don’tyou think it needs so much patience to make money frm stock market? To me it is so tough.
Comment by Dotster review — May 5, 2008 @ 7:13 am
I would second the comment above about the Motley Fool. There is a huge amount of good education about stocks and investing at that site. Good Luck!
Comment by Terry — May 17, 2008 @ 4:10 pm
Thanks for the pointers for us newbies, it sure must require a lot of learning and trading ethics.
Comment by Corporate Code of Ethics — July 17, 2008 @ 1:48 pm