A professional will get about 8% return per year on average in the stock market, with many big ups and downs along the way. Do not pick individual stocks. You do not know enough to do that. You're competing against market professionals.
You probably are imagining that this is a way to make lots of money. It's understandable because there are many people with sophisticated marketing schemes to convince you to buy their products to get rich.
If some guy went to Vegas and did well playing roulette, that doesn't mean that you should go try it. Don't pick stocks.
If you're investing for the long term, the stock market can be a good investment, but don't pick stocks. Choose an ETF based on a broad market index. QQQ is a good example.
If you have debt, pay that debt first.
Then, consider investing in health insurance so that you don't end up with a big medical debt again.
Then, start saving. Put the money somewhere safe like a savings account. If you start trying to pick stocks, you're more likely to make a mistake that will set you back. The first rule to making money is to not lose money.
Investigate Before You Invest
What do you want to invest in: stocks, bonds, mutual funds? Do you want to open an IRA or buy an annuity? Does your employer offer a 401K? Remember, every investment involves some degree of risk. Most securities are not insured by the Federal government if they lose money or fail, even if you purchase them through a bank or credit union that offers Federally insured savings accounts. Make sure you have answers to all of these questions before you invest:
http://www.usa.gov/topics/money/investin...
Most online brokers require at least $500 to begin investing.
I do recommend investing early, however you still want to focus on your bills as first priority. Investing is something that requires you to put your money away for years before actually benefiting from the returns.
It may be ideal for you to automatically deduct $50-$100 per paycheck into a mutual fund (where another company invests your money in a larger pool of money).
I want to invest. I am a waitress, and super tired of never getting ahead financially. I am currently pretty much broke and trying to pay off some hospital bills, so i don't have much to start with, but i am curious if it is still possible? How much do i need to start investing? How long before i can use the money earned? (We want to try to buy land sometime in the near future) For that matter, how do i actually earn money? Do i go with stocks, bonds, mutual funds, CD s, or all of the above? (To be clear, i am still fuzzy on my understanding of all of these things ) how can you tell if it is a good stock to invest in or not?
Feel free to add any advice, i may have missed some questions.
Also, forgive my shoddy capitalization and probable misspellings. ..my phone browser and keyboard seem to disagree and don't function well together...and my thumbs are big.
Thanks!
