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How much stock should I buy?


I am new to investing and want to purchase a stock. I have an investment account that I'm comfortable with. As for the stock, I have reserached the company, read much analysis on it, and feel comfortable at its current price (around $17).

have a few thousand to work with, but I am unsure of how much of the stock I should buy. What kind of factors go in to determining how much you should buy?

Although, I have a few thousand to work with, I definitely don't want to use all of that on this one stock.

If you are just starting out, you want broader exposure than just a single stock. An S&P 500 index fund is a common recommendation for a beginning investor. If you have a brokerage account you can buy an ETF(exchange traded fund) in that account.

For the other stock, I would buy 100 shares. This will be enough, that you get some return if the stock does well, but you still have enough diversified, if it does not do well.

Why risk it on one single stock? You need to invest for the long-haul and buy good growth stock mutual funds with a 5-10 year record.

Buying a single stock is the absolute riskiest investment you can buy.

being new you will want to dabble in two or three stocks. invest some in short term gains and some in long term gains. i have two in long term, making up about 70% of my total investments and the remainder i play with in short term gains.

The amount you buy should depend on how much it costs for you to buy the stock. I used to get hit with 35 dollars for every 1-50 shares I bought. Therefore I would buy in increments of 50 to maximize my dollar my cost to buy and sell the stock. The amount you should buy really depends on how confident you are that the stock will go up in the next year and retain that value. Since you are in your 20s, have a 401 and its only a couple of thousand you could potentially invest all of it in the stock but you better be sure you feel it is a winner. I have never been a fan of mutual funds unless there in my 401k or roth.

Up to 20% of your money.

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