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Just open a account and need advice on the next step trying to make money and invest how much i need to invest |
need advice on how much i can invest i know i can invest anything but i am trying to make money with as little as possible You don't say what kind of account you opened, nor with how much money. If you do not have much, make sure it is in as high an interest-bearing account you can find, just keep putting money in every week. At some point, you will have enough to put into a CD (Certificate of Deposit), for as long a term and as high an interest rate as you can find. Once you have enough to pay all your bills for 3 months, look for a good mutual fund and start buying shares. Depending on your risk-tolerance and need for liquidity (ability to turn your investments into cash), you may be ready for real investing. This question is really hard to answer without more information, like: what is your risk tolerance? It sounds like you don't really want to risk that much, so I would suggest that you maintain a "buy and hold" strategy in that you buy only those companies or group of companies that you expect to do well. Follow your instincts, you know more than you think you know. Also, you may want to diversify accross different sectors. For example, if you were to buy a mutual fund it may help you with the diversification issue so that there is not much volatility in the value of your portfolio. I invest in exchange traded funds (ETF's). ETF's give you built in diversity. QQQQ is a good one because it invests in all of the stocks that make of the NASDAQ. It also pays dividends. There are also ETF's that invest in foreign stocks as well as the Dow. Your broker can give you information about them. As to how much to invest, that goes to your risk tolerance, but if you invest little you will gain little. Some brokers offer margin accounts which is essentially money loan to you to invest. But understand the risks involved and read the prospectus before investing. As a beginner, just take your time. You will make money. You can make money with at little as $100.00 What is your goal with your investment? |
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