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I want to invest money in stock. How much do you need to start?


I want to invest money in stock. How much do you need to start?

You can start investing with as little as $50 for some stocks and funds. Consider investing in a mutual fund instead of just one stock... essentially what that does is buys you a share of the fund, which invests in many stocks (so if one fails, you don't loose all your money).

Read "The Automatic Millionaire" by David Bach - a good basic introduction into how to save and invest your money.

any amount to about 5000-10,000 thats should be a good start.

you need to buy good growth stock mutual funds, with a 10+ year track record. Individual stocks represent the highest possible risk. Without experience, they can wipe you out in a just a short time. Mutual funds create diversity of risk.

What kind of stocks are you wanting to invest in? What purpose are you investing for (your goal) and how far away is that goal?

It all depends on your level of knowledge.

If you want to have a very diversified portfolio only with stocks.... you should have like 20k... but buying mutual funds will increase you diversity level. If you want to invest a part in a mutual fund and the balance in a couple of stocks, you should start with about 4k. Maybe 2.5k in mutual fund and the rest in stocks.


The thing you must know is... the lower the transactions are... the bigger the fees will be proportionnally to your investment..

Bottom line... more you have money ... more bigger the profits will be for the exact same transaction.

Well there is normally a minimum of $500 to open a brokerage account.

I hope you invest a lot more than that because trading fees can quickly eat away your profits. It can be $20 to make the trade, and that is 4% of your money gone if you only use $500.

I believe you shouldn't bother to invest anything less than $1,500 in a stock due to brokerage fees.

I see you are interested in investing in the stock markets. Start trading stocks is as simple as opening a trading account with no minimum investment amount and then picking a stock for as low as $100 and then buy. However, that simplicity is truly the wolf beneath the sheep's skin.

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/


In conclusion, what I am saying here is that trading stocks and investing for profit is a professional game that takes years and a lot of money to learn, so it is not something that someone in need of college fees should do ... now.... but you should certainly start to learn about it right now.

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

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The minimum is usually 1000 dollars. With that amount you should restrict yourself to buying and selling maybe once a year. You pay 9.99-25$ every time you trade, and that is 1-2.5% right off the top.

I would start with a constant investment into a mutual fund, and when you think you are ready to invest in stocks, you will have a nice lump in the mutual fund to invest.

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.tutorialforyou.net/investing/

wish it will help you.

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