It will seem intimidating to make your investment selections, but when the account is new, it doesn't really matter, there is no money in the account. Then you can read about all of your choices, and think about your risk tolerance, and re-allocate to what you think is appropriate.
Option 2, open an account at TD or Schwab and buy some stuff.
Regarding buying McDonalds or Apple... this is a little bit in the Peter Lynch school, which is to buy the company which you feel like you know something special about them. Never put more money than you can afford to loose into the shares of a single company. People who do invest in single company shares, own shares of 20 - 30 companies, have at least 100,000 in their investment account. Until you get there, use funds for the bulk of your investing.
Luck sometimes plays a role in profiting from investments (both good and bad), however wise investment techniques and emotional control is the only way to consistently profit over the long term.
Many new traders gamble in penny or speculative stocks. These type of people may profit in the short term (just as in a casino) however probability eventually catches up with them.
Like AlCapone stated, diversification is a must. Also I'd recommend reading up on fundamental analysis and accounting/finance basics. Understanding how businesses are valued is a great tool to possess when investing.
For accounting & finance I recommend the book: "Financial Intelligence: A Manager's Guide to Knowing the Numbers." For fundamental analysis I recommend the book: "Warren Buffett's 3 Favorite Books."
Investopedia.com is also a good, free source to learn about trading. It has short, interesting video tutorials.
I would suggest getting a couple of books, such as "Investing for Dummies", and teach yourself the basics before you make your first move. There are lots of ways to invest but the best way to get started is to simply save up your money in a bank savings account. It won't make much, if any, interest but it'll give you a good solid base to start from.
No investment is a sure thing but some are safer than others. You must decide what is more important: 1) making safe investments that protect your money, or 2) taking risks in investments that have the potential for making you good money, but also have the risk of losing money. Of course you can diversity by having both kinds of investments. Diversification is the key to smart investing. Never put all of your money into a single investment.
Yes, you should invest in McDonald's or any other stocks. The earlier you start investing, the more time your money has to compound and grow. Just think if you were to start investing $100 each month into the stock market and you earn an average return of 8% per year of your investment.
Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.
Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing for Dummies” by Eric Tyson.
To continue your education select some of the following
Beating the Street by Peter Lynch
From Riches to Rags, by I.C. Freeley
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
What Works on Wall Street by James O'Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig
Websites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks - http://www.1source4stocks.com/info/stock... or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fro...
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.
And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/
After you feel comfortable with what you're tryng to do, visit the Web sites of some of the more popular brokerage firms. So if you feel comfortable with what you see on line and look at the cost and/or charges. When you are ready to go, just open an account on line with the firm. Please remember, the cheapest is not always the best. Even though you’re opening an account on line. you can always call the firm's "customer service" area for help
You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.
Good luck on your journey, study hard and you’ll invest well.
Investing for dummies is a decent start but I would go to the library and find all of Jim Cramers books. They are fantastic
Investing best way share marketing:
1.Value of stocks comes from public perception of its worth.
2.Stocks" can mean a lot of different things
3. trade commodities by buying and selling "futures".
401k
I've heard that you can make money on investment of course that's if your lucky, But is it really true you can really really make money investing in things. Some say that a good way to start is by buying stocks like McDonald's or Apple, But is that a good way to start. I'm only 22 years old so I don't know too much about investing, can you give me some tips
