If you want a stock tip: Consider Facebook (FB)
According to the "experts" FB is well positioned in the mobile market which is expected to be huge in the next few years. FB stock price is projected to increase 50 to 300% in the next couple of years. (I bought some, but I have been wrong before)
Go to Zacks, Motley Fool, theStreet and read before you buy. Watch CNBC and the Fox Business Channel. There are many shows: Bulls & Bears, Forbes, Cashin' in, Making Money with Charles Payne, Mad Money, and many others.
And forget penny stocks. You are gambling and will lose, if not sooner, later.
How does Trading Work? I can say you that take a look at this site ( http://forexsignal.kyma.info ) may be it can help you. It 's one of the best course about trading. It seems like Trading is almost totally based on Macro-economics. It also strikes me that since there are not nearly as many currencies as there are stocks/bonds/derivatives etc etc, there must be a large number of market players in each currency bracket. So logically, currencies must be very liquid true? Also, what is the risk of Currency trading, high or low? When I read the business section every day I notice that the Canadian loonie moves hardly a tenth of a cent on a regular basis (in comparison to the US dollar). So it seems like theres very little room for growth in currencies unless you leverage. On that note, whats the maximum leverage permitted for forex trading. I know in stocks its x2, and in derivatives its x10. Anyway the only way to know how to start a profitable buisness is by following some methods like the one that I suggested.
Speaking from little knowledge of investing. I have owned some stock but never got really into it. I found it is actually better to invest in precious metal. (gold/silver) just watch the market as you would a stock/ Buy low sell high. With stocks you have a gamble of losing money. However with gold/silver there will always be demand even if it crashes it will rise again.
I would stick with something that's not going to be a rollercoaster ride, that will give you decent growth but without big drops. For the price range you are looking at, I suggest AT&T (T) at about $35. It will go up over time and it pays a great dividend over 5%. For that matter Verizon (VZ) is right around $50 now and pays almost as well, also a solid performer.
General Motors. I will sell you every share I own. Or how about Enron? K-mart used to be a good stock, as did Sears. How about Washington Mutual Bank?
There is a cost to buying and selling stocks (although that cost has come down thanks to e-trading).
P S You do not reinvest money. You reinvest the dividends (DRIP).
personally you should think about the sector of the market which might be expected to grow.
I do not understand why you are limiting yourself. The fidelity biotech mutual fund presents a very attractive opportunity to get in on the bottom floor of some fine pharmaceuticals. Why bet on only one stock which could be a bust.
GW Pharmaceuticals. They have a corner on the market for Sativex, which will soon be approved by the FDA and other medicines titrated from cannabis extracts in development.
You have the right idea of going for undervalued stocks, rather than the flavor-of-the-day stock that so many people love to throw their money into.
A stock's valuation changes literally every second, therefore a specific stock that is undervalued now may not be undervalued an hour from now.
Therefore I'd recommend doing research and understanding how to identify these opportunities. Fundamental analysis primarily revolves around ratios such as P/B, P/E, and P/Cash - however there's much more intricacies involved that's beyond the scope of a single message board post.
Learning the basics of Accounting and Finance is a great foundation to get started. I usually recommend these two books: "Financial Intelligence: A Manager's Guide to Knowing the Numbers" and "Warren Buffett's 3 Favorite Books."
Investopedia.com also has some great, free resources out there for beginning investors.
Keep up the good work.
Hi I'm 14 years old and have a long investing future ahead of me. I recently got an investing account and am trying to pick my first stock to buy (preferably under $50) I know that price doesn't affect a stocks value but i dont wanna spend 1k on one stock. I want to pick an undervalued company or just a really strong one. I'm planning on holding on to the stock for a long term and i want a good return on investment. I'm planning on reinvesting money into the stock and watching it grow. Any low risk company and/or a company with high potential would be great. I'm also looking for any investment tips and I would appreciate any serious answers. Thanks
