1. Your Questions About Stocks
Richard asks…
STOCKS?????????????????
How do you invest? What is the best website? what are stocks all about? how do you make
money from them?
Steve Winston answers:
As the answer below states, you should start at investopedia.com. They are a very good
resource for starting out. If you have cable TV in the United States (or elsewhere), you should
find CNBC on cable TV. They have a major US cable station and CNBC worldwide, that follows
stock markets in Asia, Europe and the United States. You can also follow them on their website
for all kinds of financial and political news that affects the financial markets.
I have also included a few more, marketwatch and smart money.
Http://www.investopedia.com/university/beginner/
http://www.investopedia.com/university/stocks/
http://www.cnbc.com/
http://www.marketwatch.com/
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2. http://www.smartmoney.com/
The next thing you will need is to find yourself an online broker. Smartmoney magazine runs a
survey every year and below is their results for 2009.
Http://www.smartmoney.com/investing/stocks/smartmoney-2009-broker-survey/?page=8
Good luck in your investing! I'm not sure that my answer is the answer you were looking for, but
investing in stocks is something you will have to read about online. All of the websites I have
listed have tutorials and very good information to help you get started.
Happy investing!
Chris asks…
What are stocks? How do they work and how important are they in
the stock market?
I'm 16 and I'm just curious about stocks. I've been hearing them a lot these days, and I know
that they play important roles in the economy. However, I've never gotten to know a solid,
concise description of stocks, and how they work. Why invest in stocks? How do stocks fall?
Are the amount of stocks owned by businesses proportional to their size?
Thank you.
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3. Steve Winston answers:
If you're a rookie in investing or stocks, go to
www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money
to try out the market. The stocks you want to focus on is consumer staples, consumer
discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and
bad times. Most of my positions are in these stocks. Some names include 3M, Procter &
Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their
butts regardless of the state of economy. Many of these companies survived through the Great
Depression.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO
guarantees that you won't lose money. It's just that these stocks are the best. They pay good
dividends too.
Then once you're comfortable and test the waters of the market, you can finally put some real
money in. Go to Scottrade.com. They're excellent for beginners.
If you're new to stocks, DON'T DAY TRADE. You'll a rookie in a world of professionals. I tried
day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first,
making about $30 a day but I was way over my head. My luck didn't last long and I had to
rethink my strategy.
Day trading involves A LOT of commissions to the broker. With all the commissions deducted
from each trade, you'll be lucky if you only lose half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100
worth of fake money and play it in the stimulation format. You'll see what I mean by losing
money every easily.
Good luck.
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