After thinking it over for a while i decided to get stocks for my graduation present. I have been looking at different online companies and can't decide which one is the best to use. I was wondering what you guys have for suggestions for a first time stock investor. I will probably have only about 1000 dollars in there and it won't be added to for a while because I will be too busy with college to work much. I was just curious what you guys use for online investments and any tips/suggestions you may have. I am not extremely knowledgeable when it comes to the stock market so any advice would be great. I am looking for a site that will make it easy to monitor and also trade stocks, as I will not be investing more money for a while I plan on monitoring and trade the stocks I will be getting from time to time. Any help would be appreciated. Thanks
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2 hyperframed mags -
My suggestion, Roth IRA. It's not as "fun" as "playing" the stock market, but it's safer and should be the first investment everyone makes.
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For only $1000, you're best bet is a decent mutual fund. Look at one easy to track with low expenses. This way you can track it simply. We don't reccommend individual stocks to small investors as they are far too risky.
The T Rowe Price or Putnam S&P 500 funds are no load, easy to buy (1-800 #) and simple to track. Listen to the news to see if the S&P500 went up or down.
Also what is the purpose of this money? Buying your first home when you graduate? Retirement? That is what you need to answer before choosing the vehicle for your money. A Roth IRA is nice if Retirement is the goal! Also don't be playong the market if you can't leave that money alone for at least 4+ years.
Good luck!Comment
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I have considered a roth IRA as well, but wanted something that I could watch and trade stocks if I so desired. There is no real reason for me to invest, but rather something to do to slowly gain experience. I am going to be attending a bussiness school in the fall to study actuarial mathematics. So salaries are pretty competetive straight out of college for that major so I see no real need for the money to go towards a house after graduation, but it wouldn't be a bad thing. I thought stocks would be a good way for me to "learn the market" and also different strategies when investing because I intend on doing a lot of investing in the future.
In regards to the S&P 500, I have also considered that. I understand pretty well how it all works. Like if one stock goes down it won't impact you as much because the other stocks are their to "weigh out the loss." Like if you had all your money invested in one stock then it would be a difficult loss.
2 hyperframed magsComment
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You know, Google hasn't had its IPO yet...you might try and find out when that is, and jump on it.
"Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin slitting throats." --Henry Louis Mencken.Comment
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ummmmm no, don't do that. deadeye is right; just put it into some sort of no-load index tracking mutual fund.Originally posted by Target Practice
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Yeah, but he said that he isn't worried about the investment. I mean, that's what it sounded like to me. So, If he want's to dabble, let him dabble. It's not like he's dropping his life savings into anything.
"Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin slitting throats." --Henry Louis Mencken.Comment
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I am still debating on which direction to go. I have 300 from my parents going into it for sure and I have lots of cash I could put in, but I don't see myself putting more than 1000 total in. I think even if i put 300 in it would be more of a learning experience. I dont intend on getting rich off of it, but I also don't want to loose it all either. I intend on doing intense researching before purchasing any stock as well.
2 hyperframed magsComment
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Well the best advise I can give you is pick stocks from companies you know and USE. I did a project for economics class way back in h.s. and all 5 of my stocks went up in a 4 month period. Had I actually invested I would have made a fortune on 4 of the 5 and a tidy sum on the fifth one. Like you just posted. Invest in companies you know well or preferably companies you buy products from. My father buys and sells stocks daily for his clients. About 1 million dollars he plays with. He sells if the stock drops 8 percent from his purchase price. Dont be afraid to take a small loss. Be afraid to take a big loss.
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