Investing in mutual funds or ETFs IS investing in stocks!
With the mutual fund or ETF you buy several stocks at once and help you reduce your losses. If one or more of the stocks in the fund goes down hopefully the other stocks in the fund will be going up or not make the loss do severe.
Most mutual funds have a minimum investment amount and you might not have enough for most mutual fund minimums unless you plan to make a monthly contribution to get you up to the minimum.
If you are young you probably do not want to be investing in bonds. Bonds are more of a way to preserve your money than to grow your money. As you get closer to retirement you want to start switching over to bonds.
If someone tells you to invest in a certain stock you should be cautious of that advice. Do your own homework/ research!
If you are young think long term. Consider stocks and funds that pay dividends. The compounding returns over time add up very nicely.
I'd advice going for 'blue chip stocks' safe stocks ones that have low volatility (and in turn low returns) because of the low volatility these stocks dot fluctuate much meaning you'll make a small amount of money ... But this is Lon term without huge returns.. So if you want to go hell for leather and try something like 500 a stock then tear away but be prepared to never see that money again as it's a chance (not really one you want to take if you don't know the market...
In reality whatever you do make as a return will have so many chunks taken out of it by brokers etc that it won't beuch to talk about ...
You don't tell us what you hope to achieve. That is the starting point.
Do you want to speculate, say $700 each on two stocks? You may double your money or lose it all.
Do you want to increase the rate of interest over a bank? Go for corporate bonds.
Do you want a steady, diversified portfolio?
Go for an index ETF or an Income & Growth Investment trust.
What do you expect? For us to come up with some magic formula to make you money with low risk?
Alright I get there is a FAQ with how should I get started, but i have a question of what should I do. I have recently acquired a scottrade account and only have the small amount of $1400. From what I have seen I should not invest in stocks because of the low amount of money. Many tell me to go mutual funds. My parents say stocks are they way as it works well for them. Does anyone have any suggestions of what should I do? Invest in stocks? Invest in a certain stock? Bonds? CD's? Mutual Funds? ETF's? I personally don't care if it is long term or short term. Please help me.
