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STOCK MARKET-minimum inventment?


What do you think is a good amount to begin investing with? Would you say 200 is too small of an investment? Do you have to invest 10's of thousands of dollars?

A good amount is what you can afford to do without. You can invest small amounts such a the 200 you mention. But your investment won't be diversified which is one general recommendation. And, most often, the commission on stock is a flat rate so the portion of your investment that buys you nothing will be significant. You might think about mutual funds to get your feet wet.

Stocks are a good investment. Over the course of history, they average, roughly, an 11% return.

The trick about stocks is, you have to pay a fee when you buy or sell. So if you buy $200 of stock, and pay $10 for your stock broker to buy it for you, then it goes up 10%, and you sell it for $220, with a $10 fee... The stock gained you $20, but you spent it on buying and selling it.

I opened an account with $5,000. This is my "play money" or risk capital. Again, if you are a novice and want to play the stock market, assume that you could loose all your money. This concept will give you an idea on what you're willing to risk.

On a side note, I would suggest taking an investment class at say the local community college. They will give you an the basics - enough to get you started.

My son started with blue chip stocks at $25 per month. Its diversified. Now he's gainned enough to be in the bigger investments

Depends if you just want to buy and sell or if you will be trading options. Great E-Book (free) i found can be downloaded at http://www.masteryinwealth.com. Check it out.!

$500.00 USD (Scottrade)

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