Wanted to invest small amount of money in stocks any suggestions?

I want to invest in stocks for my kids, if I could get some good advice from someone who can seriously guide me, small amount of money, maybe a few companies that you have good insight about.Thanks.

You have to watch stocks Q over Q. Unless you are willing to do that, you are better off with a low cost equity income mutual fund from Vanguard, Fidelity, or T. Row Price. Just pick one with a good long term record and LEAVE IT ALONE for a long time. Your kids will thank you.

Dave Cote from Honeywell (HON) has been quoted as the next great manager. Cote pulled the company back from the brink of falling off, and now the company has increased its sales and cash flow significantly. Aerospace is a timely sector for the next couple of years.

HPQ is about to take off, It's had a great quarter and has really terrific management, but it hasn't made a move yet. Moreover, HPQ is one of the few tech stocks that can be held through the summer.

DE is a good growth & income stock and has exceeded earnings estimates for 7Q, with five of them posting double-digit positive surprises. Six analysts have raised their forecasts for this year. Over the past 60 days, this year's estimates have increased 35 cents to $6.95 per share. Farmers' first reaction was to buy more farm equipment, seeds and fertilizer because the farmers' bill was an earnings-per-share raiser for the agriculture complex.

MS- There are "50 reasons" to back the big brokerage, which has turned its business around in the two years since John Mack rejoined as CEO. The stock is continuing higher from its recent run to within a dollar of a 52-week high.

Recommend RS off comments by Lakshmi Mittal, CEO of Mittal (MT), that he wants to buy more metals companies.
RS announced it would acquire Clayton Metals for an undisclosed sum. Shares of Reliance have recently pulled back to 56, a good buying opportunity.
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I see you are interested in investing in the stock markets and think that you can start successfully by asking questions like this online. Just think, if winning in the stock market is as simple as posting questions like this, why are so many people still poor?

Most people who will even tell you a "good stock" to buy here are people who are waiting for you to to buy in so that they can sell it at a slightly better price!

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.h...

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/).........

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.


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Although I do like the stocks suggested by SWH, your 1st responder, I like much better in this case the recommendation of Slavaret2. With mutual funds, especially good fund from those recommended companies, your children's investments will be in good hands. There is just one little catch to that recommendation that may be of concern to you. The initial investment is at least $2500 with each of those companies. I am not certain what your definition of a small amount of money is. There is another mutual fund company that has excellent mutual funds where the initial investment is only $250. There is a catch. The company charges a front end load of 5.75%. But it has good funds and low expenses. American Funds is the company.

Here is the link

http://www.americanfunds.com/default-hom...

But if you have enough to meet the minimum the others are a better choice because they are no load.