Q & A - Begin Your Investing Journey

Date: Friday 09th 2008f May 2008 03:26:46 PM

Q & A - Begin Your Investing Journey - 03/04/2008

By: Hari Wibowo

Name: Tsai

Website: N/A

Date posted: Mon, Mar 3, 2008

Question: Hi,I need to know how to begin investing. Do I just call an investment company and say" I have X amount of money---take it" I do I begin? Please help?

Answer:

Hi, Tsai. When you have put aside some amounts of money to invest, the first thing to do is to open a brokerage account so that you can do some stock transactions. I would recommend online discount brokerage such as Scottrade or Zecco. If you are confused, you can see some discount brokerage comparison here or other well known sources. After you have your own brokerage account, the next step would be to search for undervalued company. For beginners, I would recommend buying index funds of S&P 500 (Ticker: SPY) and Nasdaq 100 (Ticker: QQQQ). SPY has returned 10.5% on average since World War II while QQQQ is a collection of technology stocks which would do well when the economy turns up. Please be aware, however, that it is more advisable to buy an index fund on the dip rather than when it is running high.

Once you have an idea on what stocks you would like to buy, you can use your brokerage account to make trades. It is a learning process for every investors but generally, buying a stock below its fair value would serve you well. The more knowledge you have, the better your analytical skill will be. In any case, please do not hesitate to post any questions to us and we will gladly help you anyway we can.

Hari - Novice Investing

END

Hmm, I am confused. And I have questions

I'm fine, thanks. Bring me back to main page

Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding any securities.

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