Instead of focusing on individual stocks or chasing hot industries, start with mutual funds from a low cost provider like Vanguard or Fidelity. If you set up an automatic investment plan, you can start with very low amounts.
Here are 3 classic investment books that should be in most any library. I suggest that you read them before buying another stock.
One Up On Wall Street - Peter Lynch
A Random Walk Down Wall Street - Burton Malkiel
The Intelligent Investor - Benjamin Graham
First, avoid gambling! If you buy stock hoping that you can sell it for a quick profit because of the weekly or monthly swings in price, then you are not investing. You are trying to guess better than the public (including the professionals) how the price will change.
You would be more likely to make money at a casino than gambling on penny stocks. Generally, those companies are near bankruptcy and the shares could easily become worthless. When that happens, it doesn’t matter how much per share you paid, it is all gone.
Choose a company that has steady earnings each year instead of losses. If your company has very little long term debt, it will likely not get into financial trouble.
Buy these sturdy stocks and hold on to them. When you hold these stocks over a period of time, the prices will go up for a real reason; the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a business. It takes time for that business to earn money.
If you save a portion of your income each payday and as it accumulates invest in stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
. .
I agree with Mr. Donut Tim, it's really risky. I'm new to buying stocks as well, but I'm adopting the long term strategy as well. I'm more into index funds that track a basket of equities. I don't want to spend my life pouring over the Financial Times looking for my opening and stressing over P/E ratios. I'd rather go camping and hiking.
I'm making big money with binary option, I use this software ( http://forexsignal.kyma.info ) My software delivers signals only when the five indicators (bp trend filter, market deviation, price pattern, rel. price impulse, stat. price range) are aligned together and we have an extremely high confidence rate, it must then co-exist with my proven secret strategy before a trade be detected… as a result, we get a guaranteed Highly-Accurate ’80-100%’ Signal.
Advice:forget penny stocks (at least OTC, Pink Sheets,BB.)
I'm new to buying stock and right now I have $500 to use to buy shares and I plan I dump $300 into this account every month. I'm 50/50 on penny stocks because I know there is a possibility to make a lot of money but it is also very risky. I would like to start out making smaller profits ten eventually make bigger and bigger profits. I'm not looking to become rich overnight. Does anyone have advice or opinions on which stock I should buy or what industry is expected to take off?
