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Whats a good way to start investing in the stock market?


I just graduated from college, and starting a new job- What are some investment ideas for someone who has absolutely no experience in the area? any good books, internet sites, and personal advice is greatly appreciated -
Thanks!

Great Moves!

I think these articles will help:
How to Find Good Stocks That Will Survive 2008 Market Crash
http://ezinearticles.com/?How-to-Find-Go...
How to Pick Good Stocks That Can Make You Rich in The Long Run
http://ezinearticles.com/?How-to-Pick-Go...

In case you want to know what it takes to get started, read this:
How to Get Started Investing in Stock Market - 3 Must Do Checklists
http://ezinearticles.com/?How-to-Get-Sta...

I hope the articles help! ;)

read jim cramer's two books: sane investing in an insane world and watch tv and get rich. their good for the basics but shouldn't be relied on. even cramer says you have to do your own homework before you invest and he is just a guide.

you can also pick a good mutual firm from a place like prudential and commit to putting a percentage of your income into it every month

the best thing is to get rid of your debt NOW BEFORE you do anything with stock.

Motley Fool(.com) and the Wall Street Journal are great ways to become more knowledgeable in what is going on in the market. I think the first thing you should invest in if you are just starting out is a very low risk mutual fund or maybe even a treasury bond. That way you can get a feel for how the market works and what to watch for. After that you can start researching different companies and follow what the Motley fool or the journal says about the latest news and then move on into higher risk and hopefully higher return as well.

Good luck!

Standard investment advice is that you should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do "Asset Allocation," determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea. If you have children, you may want to consider a 529 plan or other college savings plan that grows tax free.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planni...
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetalloca...
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin...
http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)
https://personal.vanguard.com/VGApp/hnw/...
https://ais2.tiaa-cref.org/cgi-bin/WebOb...
http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)


529 plans: http://www.savingforcollege.com

The stock market is not the place to start. Read "Investing For Dummies" for a great basic book. I recommend you begin with mutual funds before trying stock picking.

Simple. Invest like W. Buffet and invest in dividend paying stocks.
You can use dividend paying stock data and research tools from experts like DividendInvestor.com.

http://www.dividendinvestor.com/

Mutual funds are your stepping stone... when you are more familiar there, you start looking to do better than your fund managers...Good luck!!

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