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How does a regular person invest in the stock market? |
Mark Cuban did it. I want to make big money off investments. How do I do it. I dont have a lot of money. I am just a single mother trying to make it . As a single mother with limited income and no prior experience, you do not want to go out and buy individual shares. You will almost certainly lose your money. Open an account at some discount broker like Scottrade and place your bets. You can make trades online and everything. a regular person invests in the stock market by putting money in a mutual fund, this lets a professional manage the money for them, either that or risk it all like in a casino like the last person said Actually Mark Cuban is an entrepreneur not an investor, he founded the company Broadcast.com and very slyly sold it to Yahoo for about 6 billion just before the dot.com bubble burst. Luckily he was able to diversify much of his money and still has a net worth of around two and a half billion but that doesn't say much for his investment savvy. If your question could be that easily answered then everyone would be a millionaire. I can give you this advice. Make sure you are debt free before you invest and your first investment vehicle should be via your 401k. If you are not maxing that out you should not consider investing anywhere else. If you are maxing out the 401 the next step is funding your IRA. Both of these are tax deferred so you save a bundle in taxes plus most companies will provide a percentage match which will beat any investment. If you have money left after that you can use any of the low cost on-line brokers to invest (e-trade,Ameritrade, Schwab) etc, etc. As a novice you should diversify as much as possible in all these investment vehicles. Once you have a significant portfolio you should get a financial planner. Unfortunately there is no get rich quick scheme and if someone tells you there is you are probably the schema and they are the ones getting rich. Time and consistency is the key to building wealth. It's called dollar cost averaging and this is the perfect time to start as the market is down. Sweetie, as a "single mother just trying to make it", stay away from the stock market until you've taken college finance courses and read at least 8 books on the subject of investing. Cuban diod it with his sales and purchases of the Mavericks team and turned those wimps into winners. My best advice for you is for you to put what you can into an online savings bank account I use ING but wamu, emigrantdirect etc are just as good. This will accumlate interest for you and teach you to put money in reserve with automatic depositis. John P's advice is absolutely correct; reading 8 books on investing, listening to Bob Brinker and Clark Howard might change your view on investing. And starting a business comes through hard-work, determination, and an excellent idea that can be marketed profitably to customers. If you don't like reading and especially stuff like earnings and sales, then individual stocks are not for you. Zecco is FREE. |
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