Go sign up for an Etrade account. I think its like ten bucks a trade. Now actually picking your stocks is a little tougher.
I wouldn't sign up for an eTrade account right now...they're stock price is going crazy as of late (although you're insured up to a certain amount in case they tank). I recommend AmeriTrade.
Buying your own stocks is much better than a broker doing it for you since it will be a fraction of the cost. But selecting the stocks is a difficult task. If you can't devote at least 3 hours each day to understanding the markets and economy you are most likely wasting your time as the market will generally take your money away. Remember you are playing against professionals who take stock selection very seriously and usually have devoted their whole life towards it. But if you start slowly and learn a new concept each day, after about 6 months to a year you might be ready to make smart decisions when it comes to selecting your investments.
I used sharebuilder to buy some sony stock...I had read somewhere it was the best rated site for beginners but I don't know how true that is...I didn't do enough research but I did make about 100 bucks (didn't invest alot) and I learned alot...I'd say if you want to do it your main thing is research...
What about not using a broker, not studying that much, but instead using a website such as morningstar to get your picks. For example would it be a bad idea for a relative beginner to use morningstars picks to create a portfolio of the most undervalued stocks from different industries that have a wide moat?
^ I'd like to get in on that. I'm also a newbie who wants to understand the details of how to succeed in the market.
You don't know how true that is...My boss uses Ameritrade, as there was a problem with e-trade last year and he doesn't use it anymore...He invests a lot, but sometimes it can be tough...With the dollar down, he's be preaching gold, and he told us that when it was at $600/ounce...you know the rest... For example, he saw the xmas rush at the Apple store, he bought a lot of stuff from there and even after the holiday's, the stores were still packed...So he bought some stock...Well, as you know, Apple has tanked so sometimes, its logic and sometimes its luck... As many stories there are with good picks, there are many more on bad ones...when someone makes money, someone loses it...
Research is very important. Think of it like you are buying a car. Make sure you read up on the company and really understand what they are doing and how they are creating value.
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I'd like one, too. Thanks, mlwoo. I've always kept a casual eye on the market. But what's happening right now has me seriously considering investments. Is it a good time to buy bank stock? They're pretty low right now, but I believe some of the banks that are low will get helped by the Fed and bigger banks.
just fyi for you guys focus lists change. stocks get added and removed from them all the time. it is a good place to get a start and get ideas but they aren't gifts of free money in the stock market. anyhow i get all of goldman's research at work. i can see if i can get the comprehensive focus list if you guys want it.
