eHowToGuru

Posts Tagged ‘Investing’

I would like to learn the basics of buying stocks or learning how to buy stocks that would give me a good return on my investment. The issue is I would like to know if there is any solid advice one should know before investing in as well.
More or less I would like to know how you can buy stocks online as well. Do they charge a fee for one stock at a time to buy online or you can pay a monthly fee to trade stocks for a set price?
I would like to know the best way to seek out a stock broker to trade for you as well as a good guide?

Is it possible to invest directly on foreign stock exchanges through an online broker. I am not talking about investing in ADRs on US markets, but actually buying directly on foreign stock exchanges.

I need something that will explain it to the complete novice. I don’t even know enough to really know how to ask! I want to know definitions of things like stocks, options, bonds, brokerage, etc, and all about investing.

First, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. (Some people say 6 months.) Financial disasters like getting layed off or sick happen to all of us.
Second, I would pay off all high interest debt. Pay off everything you can except the house mortgage and student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won’t have credit card bills to pay.
Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.
Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work. Buying a house instead of renting will make you a lot of money in the long run.
Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Yes. It is possible but you should also know that those with minimal risks have minimal returns.
Higher risks = Higher returns
Less risks = Less returns
You have to gauge where you are. How risky you want to get or how much return you want to have.