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I need to make investment in stock market but I don't have any experience and don't know how to start?


I need to make investment in stock market but I don't have any experience and don't know how to start?

what do you mean by you "need to make investment in stock market"? Why do you "need" to do this? How much are you talking about? what is it for? A bit more info would be prudent before advice should be given. Speak with an advisor who can help. You may find that you "need" to do something else

The important part about stock is not choosing the big names, but diversifying--not putting all your eggs in one basket. You can have a couple shares of a tech stock, some in gold, some in an oil company, some in a large name, a couple ETFs (exchange traded funds; mutual funds that have a lot of stocks in them, don't change much in value [usually going up], and trade like stocks), and perhaps a couple other stocks that you think are good buys and have a chance to go up. Don't discount those brands, however, as they may be good choices for the future.

On the matter of how much to spend, look at 10% of your income as a minimum. The max is however much you feel comfortable with investing, whether you want to put 50% up for investing and leave the other half of your check for spending and gas money.

The best place to invest is http://www.sharebuilder.com. They don't make you buy whole stocks. Instead of paying, say, $50 per share, you can set a limit (say $50 per month) that you will pay, and spread that evenly among 5 different stocks. Each month it would buy $10 of each stock, so you end up with uneven numbers of shares--1.259, .56, 3.82, for example. You set it up to pay the amount you choose weekly or monthly and have it withdrawn from your checking account (if you don't have one of those anyway, it would be wise).

If you are under 18 years of gae, you will need your parents or guardian to create an account for you, but you can link it to your bank account for funding and other transactions.

The best thing to do is to give me all of your money. I will invest it for you and then call you in 5 or 10 years to tell you how you're doing. Okay?

You may want to spend some time reading about investing. The best place to start is your public library. Go to the investing section and grab few books on the subject. Read randomly, searching for nothing in particular. Eventually you will know which book suits your personality and current level of expertise. Take it home and read it through before delving into the sea of stock-market investing. If after reading the book you still think this type of adventure is for you, go ahead and open an investing account through your bank or with an independent financial institution. Start small, applying the principles you've learned. As you gain confidence, you may go deeper and become more aggressive.

Good luck, and let me know how it goes..

Go to www.sharebuilder.com

The learning section will help you & you do not need much money to start.

The simplest method is also the best method in the long run. Buy a total stock market index stock. That way you'll be exposed to large cap, mid cap, small cap, tech, value, growth, gold, fx and everything else in the whole financial universe. If over 20 years you're able to beat this return, then consider yourself very skilled (though I would say lucky) as you are part of the .001% that beats the market (or something like that).

And most importantly, remember that the retrurn on your investment doesn't matter nearly as much as having the discipline to contribute to your savings early in life and on a regular basis.

Why do you "need" to make a stock investment?

Suppose aunt Martha gave you $10,000 to put into some Wal-Mart, after all, they were kind to her with the new $4 prescriptions. Now you have a "need".

So you call up your broker, and if you don't have one may I suggest Scottrade. You fill out a simple form with a lot of fine print, and it essentially identifies who you are, the person owning the money in the account, and you give them a check for your aunt Martha's $10k. You will set a login and password and one day when you login you discover that the check cleared.

Since aunt Martha wants you to have a piece of Wal-Mart, you see the box for a stock symbol to give you a quote and, in this example, type in WMT, Wal-Mart's symbol. There is usually a "symbol lookup" link to click if you want something else but don't have the symbol. Suppose it tells you the same that I just checked it at, $46.45. Scottrade will charge you $7 for a stock trade (one way, buy it or sell it, not both). Subtract $7 from $10,000 and divide that by 46.45. You can buy, if the price doesn't go up too much in the meanwhile, some 215 shares. If that is the price you get when the sale goes through, then you will get a message saying that the transaction cost you about $9,993.75 and you have a balance of $6.25. In about three days, the transaction will be final and somewhere on Scottrade's books of Wal-Mart shares held are 215 that belong to you. If you want the certificate, it will cost you something like $60 for them to send it to you, which will essentially close your account unless you pony up additional to meet their $500 minimum. (stocks on hand which cost more than that but are now worth less is okay)

That, and collecting the dividend (last dividend was something like about 16.8 cents per share), is about all there is to it. If your "need" was to buy something else and with other amounts and purposes, you just fill in the blanks with the other companies and amounts as needed. You'll do fine.

As a new investor, you should avoid individual stocks and put your money into index mutual funds. If you put half of it into a total stock market index, or an S&P index, and the other half into a total bond index, you'll receive amazing results over the long term, while dodging the worst of the market's ups and downs.

Also, if you don't already have an IRA account, the above funds are a good choice within an IRA because your dividends and share appreciations are not taxed at all with a ROTH IRA when you start withdrawing your money after age 59 1/2.

Don't put your money into index funds. That's for lazy jokers. Get a well balanced portfolio of mutual funds. They DO beat the market return when held for the long run.

I think the best site for learning about trading and investing in the stock market is http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standin...

Good luck.

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