I want to start investing in stocks but I know absolutely nothing about the stock market or trading stocks. I just know that I would like to try it. I have a slight, general knowledge of how it works and realize there are risks involved. Also, I am very poor, therefore I guess I would have to start out with "penny stocks". Any advice on who to use as a trustworthy, reputable stock broker or agency as a beginner?
Responses (2)
No stocks. You need to take ECON 101 at the local college and ask the professor what other classes to take. Keep studying until you don't need any advice from anybody. That takes a couple of years. The USA is collapsing. It has been since WW2. Timing and details are unpredictable, but no culture has ever escaped collapse after the symptoms began to show. In a collapse your broker, or rather the bankruptcy court, can sell your stocks to pay bills. SOURCE: www.gold-eagle.com/article/panic-consolidate-game-over
The first rule of investing is "Don't lose money!" So if you buy stocks, you are playing Russian Roulette with your money. Buy silver coins and ingots and hide them at home. Study investments at the library in the evenings. When you know a few things, then you can make other investments.
Right now gold is priced about 75 times as much as silver. From time to time, that ratio goes down to 40 or even 30. So you buy silver now, and when the ratio goes down to 30 you swap it for gold. When it goes back up to 75 you swap back to silver, but twice as much for no additional money. This is absolutely safe because you are always fully invested in hard metal, and you don't owe taxes because you are trading like for like, never selling. The only disadvantage is that it is frightfully boring. The last swap was in 2010.
www.gold-eagle.com/article/goldsilver-ratio-strategy-case-silver
You need to get a broker account that charges very small fees per trade, you need to find out what the local brokerages charge and compare.
You can look at websites like yahoo finance or 'marketwatch' to learn about the different companies, so you can make a decision which shares to buy.
Penny stocks are dangerous, you can lose all your money fast, but if you want to do it I suggest you:
-Focus on penny stocks with high volume
-Never sell short (borrowing money from the brokerage)
-Sell quickly (if you do make 20% or 30% profit, sell. Don't hang around and get greedy. Rather buy something else next.)
-Don't put all of your money into one share holding
-Don't hold penny stocks when they fall. Sell quickly and take a small loss. These companies are volatile and often the company goes bankrupt and you could lose it all.
Good luck . I like trading stocks. :-)