Anyone know how to invest in stock with little money?
Answers:
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Penny stocks?
Depends on how little. Don't go into it thinking you're going to make an overnight killing. That's what caused the run on the banks in 1929. ( No. Nobody jumped out the window, though many probably wished they had! ) Stock investment is kind of like Empire building. It requires time. You shouldn't want to touch it.
Don't
buy mutual funds via dollar cost averaging.
See if your employeer has a stock plan, many do. You can buy X amount each week (less then a whole stock) and the employeer matches the purchase. This would all be investing in your own company, but that is the easiest if you don't have a lot of money. Other then that you have to buy full shares that you can afford. As the other poster pointed out, stocks are for sitting on. The charges to sell them will be too high if you are just talking about a few bucks worth.
Here's the perfect way to INVEST with little money:
www.sharebuilder.com
A perfect solution available Online or through Wells Trade at www.wellsfargo.com
This is a great wat to invest and enter the capital markets and see your money GROW!
You can also purchase an "INDEX FUND" through your Bank or Credit Union.
GOOD LUCK! :-)
For your first investments, invest in the stock market through mutual funds, preferably index funds like Vanguard's S&P 500.
If you have little cash but are serious about it, sign up with Vanguard or another reputable fund like Fidelity -- they have a plan for automatic monthly investments where you can get in for very little upfront money as long as you make the commitment to invest on an automatic basis.
Little money ?
You'll need at least 1000$.
Since you'll be paying fees for every transaction (10 to 30$), it's important to understand you'll have to make HUGE profits before selling back your stock.
Example :
Buy :
600 X 0,90$ stock a = 540$
700 X 0.60$ stock b = 420$
Stock total = 960$
Fees : 2X15$ = 30$
Total : 990 $
6 months later :
Stock a: up 15 % (really good, 30% a year) : 540+15 %= 621
Stock b: up 2% (fair) : 420+2% = 428,40$
Sell : 1049,40 $
Fees : 2 X 15$ = 30 $
Total : 1019,40$
Profit : 1019,40-990 = 29,40 in 6 months
The real improvement : 5.8% (a year)
Assuming you reinvest, and are slightly less lucky with 2 more stocks, you won't be doing any profits at the end of the year.
If "little money" means 1000$, you better put the money in a high-interest savings account, such as ING Direct , HSBC Direct and others are offering.
With more money, it can be a good idea to start by reading a little about stock markets.
Good luck !
Open a brokerage account at Zecco and invest in the ETF DIA.
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