Can someone give a potential investor basic guidelines for entering the stock market?

	Can someone give a potential investor basic guidelines for entering the stock market? I am a 23 year old college student looking to take advantage of the current economic situation. I currently work two jobs and have some money to spare for investment. Still, I lack knowledge about investing and want to go about it prepared. Any guidelines or fundamental information would be greatly appreciated. Asked By: cory - 10/5/2009

Best Answer - Chosen by Asker
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. Answered By: Max M - 10/6/2009

Additional Answers ()

Hi Cory You are very smart to enter the stock market at 23. I wish I had entered it then, it is very lucrative. There are several books out there to learn the stock market but I suggest you sign up for Jim Cramers Action Alert. Google Jim Cramer ,he was a big time celebrity investor and now he offers the chance for you to follow his every move. I signed up for the 14 day period and studied his moves and then canceled the trial. There is no such thing as learning from the real market trades. Here is the link for the free trial. Make sure you cancel before 14 days so get the advice for free :-) http://www.dpbolvw.net/click-3662274-10568242 Source(s): Junior Research Associate Answered By: Richy - 10/8/2009

If you really want to get serious, learn about fundamental analysis.. it is the analysis to use if you want to invest your hard earned money toward growth and value stocks. There really is only two ways to look at the market.. 1. fundamental analysis (as I mentioned above) and 2. technical analysis. I don't recommend technical analysis at all. Why? Because you are basing your investment decision on a bunch of charts and patterns. It is the "day traders" and speculators way to invest. Would you want to put your hard earned money towards something that really has no justification and sound reasoning? I'll let you decide. Personally, I don't. I've studied it.. and understand it, but I could not come to grasp why people would use such a way to invest their money.. it's insane in my opinion. Might as well go to a casino. I started out learning about Technical analysis personally, since I have an engineering background I thought hey "technical" O.K.! ... nope. The economic situation has not been as "cheap" as it was back in March when things were at the bottom, but there are still some great stocks out there to invest into. This is where fundamental analysis is so useful. You should really understand it and be very confident investing using this type of analysis.. if you're not willing and diligent enough to put in the effort, it will hurt you financially. Don't trade at all and be happy with the money you're making with your jobs if you don't want to put in the effort. Source(s): I was in the same boat you were when I was 23. I studied my ass off (this is outside of school btw, I was doin it on my own), trying to understand fundamental analysis by reading tons of books. I'm 25 now, I saw the perfect opportunity in Nov '08 - Mar '09 to value invest.. I was confident it wasn't the end of the world (only because what I learned and read changed my mindset), so I invested using what I learned. My friends thought I was crazy, everyone blew me off like I was insane to think about investing in such times. Wow were they wrong now that its almost a year later :) Answered By: DV - 10/5/2009

Yes there are 2 ways that a company can earn you money. 1) the company will pay you a dividend payment. A dividend is a portion of the company's annual earnings that get paid directly to your brokerage account just for owning the company. 2) the stock's earnings can grow over time. As a company invests some of what it earns into expanding the company even more, earnings and thus dividends increase. Because of this, the stock price also increases to catch up. Now is a great time to enter the stock market because stock prices are low due to the recession. You want to buy low, while there is fear in the market and day traders have pushed stocks down, then sell high, while everyone else is getting too excited about the stock market and has gotten all hyped up about the run up in stocks. Put your money into an index fund for now like SPY. SPY is a stock that owns equal quantities of all of the other stocks in the S&P 500 index. That way if the S&P 500 does well, so will your investment. You should go to a local bookstore and find a book about stock picking. There are plenty out there so start with one that seems easy to read and understand. Eventually you should read "the Intelligent investor" by Ben Graham. It is pretty much the bible on investing based on long term fundamentals (the only way to actually make real money in the stock market). You can day trade and what not if you want, but you are pretty much just gambling. Trying to predict the minute by minute movements of the market will stack the odds against you every time and you can never win. Learn to invest long term, take control of your own finances by reading, and always invest in simple companies that you can understand. Source(s): Fund Manager Answered By: Christian Brown - 10/5/2009

Submit your answer or comment to this question

Other Career Questions

	Do you invest as a full time job and live off your profits, or do you have a second job? I consider investing a job because lots of work goes into it, and everyday you learn something new that you didnt know. and also gain experience. Do you invest as a full time job or do you work somewhere? 4 answers - Asked By: James - 6/15/2010

	What are the different investing job and what do you need to get them? What are the job where you invest company money or people money I known there investment banker and divident investor but what else is there. 3 answers - Asked By: KDJ - 2/7/2012

	How can I find out where all my 401k Investments from past jobs have been allocated? I just wanted to know is there a website or a number i can call to allocate all my invested money from past jobs that I may not be able to find? So i can combine them all in one account. 3 answers - Asked By: Tony Snow - 6/16/2012


Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo! Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.

Popular Questions

	Why honesty, hard work and dedication have no place at work? Recently I have overlooked for a project at work and I am unable to accept it why? I am hard working, dedicated, maintain a very professional decorum, very cordial with my colleagues and bosses, give respect to one and all. Still people who take the p***, argue with managers, gossip mongers have been selected for some very responsible positions at work. I seriously can't get my head around it why, why unprofessional people who have no work ethics being selected over me, whereas I have a track record of excellent performance and never shy away from any work my manager ask me to do? I am at my lowest point and not getting hold of my manager to ask the question why not me, why them who can't even bother? I am feeling like a complete loser, giving years to this place, building my performance, trust and this is how I get rewarded. Why my life is so shit, anything I wish for turns to dust? 1 answer - Asked By: network7 - 11/6/2012

	Is this normal for an interviewer to do this? So today I went in for an interview and I was going in for the 2nd interview by the head chief executive. now this is where it got weird, so she asked me about my previous jobs and said how much she liked that product over that product. then she started talking about her daughter? an her divorce ...then how she didn't finish college because she was making more money doing what she did for this company ... then she talked about how her teenage daughter is a handful... I just played it cool thinking she was using some sort of psychology thing to trick me into saying something stupid. the interview ended and she seemed happy an I was escorted to the door... now I'm freaking confused? is this normal behavior for an executive? like it felt like she was going to burst into tears at one point and tell me her life problems... is this normal? was she trying to see how I react or something? 6 answers - Asked By: Clone - 11/7/2012

	How do I get a job with Dodgy work history and no experience? Basically- no degree, although I have tried completing one in the past and stopped because of physical and mental health issues which were overwhelming to deal with along with going to classes full time. I'm not stupid and I am quite articulate. I am 23 and have only worked for about two years retail in high school and stopped working to go to university. I worked a few months in 2010 retail after I dropped out but it was only a seasonal position, and the only reason why I have not been able to constantly work is because of mental health issues. I had also tried going back to community college during my free time since i left university in 2008/9 and I had panic attacks while in community college, which made my anxiety worse from then on. Well recently I met a good doctor and he prescribed me some meds that are stabilizing my moods and I feel the best I've felt in years, and I'm ready to work. Thing is, I don't know how to get a job now since I've spent literally years being depressed and anxious doing nothing. I don't really have anything to put on my resume, and I never finished my AA degree either. All I've done is cashiering and although I do the job well and I get promoted easily when I do these jobs because I'm a hard worker and I try to go above and beyond what they ask of me,which is the attitude I have no matter what kind of work I'm doing as long as I'm getting paid. But I hate cashiering because it's too easy and I want a job that is more interesting. Any suggestions for me on how to get a job that is NOT Retail with the type of background I have right now? I also realize I have to go to college to get certain types of jobs, I am talking about what I can do right here right now. 1 answer - Asked By: Alex Prieto - 10/14/2012

	What do you say when they ask what you want to be paid? ? Wen you apply at a job and they ask how mch you want as a salary what do you say? 2 answers - Asked By: Colette - 11/24/2011

	I have applied for over 100 jobs I have gotten no calls for a job interview, what can i do? As stated in my question I've applied for multiple jobs and gotten no job interview, you name a place I've applied there. I've said i will work ridiculous hours from like 12am to 5am and nothing. I've said I am willing to work weekends public holidays everything and I have gotten nothing back I am so desperate for money it's not funny. 9 answers - Asked By: Jamie - 1/9/2012

	What to wear to a job interview VS a career fair? So I have a nice white button up shirt, business skirt and pants, and a suit jacket. I'm applying for a software development job and I'm very short and can look young so I'm trying to look adult, yet professional. I'm also attractive so I'm trying not to look too sexy. For the career fair I'm thinking of wearing just my nice shirt and a skirt with low heels. My reasoning being it's approachable and attractive without going overboard since the career fair hosts are mostly younger male recent grads. I want to be remembered but not intimidating. For my interviews I was thinking pants, suit jacket (power suit). My reasoning being it'll be older execs and HR people (mostly women) so less sexy with the pants but more powerful with the suit jacket. What do you think?! 2 answers - Asked By: Beast - 9/23/2012

	How can l find a job in the pharmacitical field as a sales and marketing manager,in south africa? L want to study medicine and work as a doctor but l am limited due to luck of required monyes. however l swtched on to anther career but still within my career interests as a care giver, but this is somthing to do with sales and marketing in the pharmcitical industry. 2 answers - Asked By: tonnydanabwembya - 12/24/2005

	What is NOC Engineer ?. What are his responcibilites ? 1 answer - Asked By: vishal - 2/23/2006

	Debenhams job application/interview help? I'm applying online for a job at Debenhams. It's just a temporary part time job but I have no previous retail experience, just in customer service, and I am finding some of the questions rather difficult. Our commitment to training and development encourages our people to grow their futures with us. If successful in joining our team, how will you become an expert at what you do? and At Debenhams, our people make all the difference to our customers. If you were a Stock Movement Adviser with us, how would our customers know that you are focused on their individual shopping experience? Any help in answering these questions would be greatly appreciated, many thanks! 1 answer - Asked By: Mac - 9/7/2012

	What questions should I ask at a job interview for a healthcare recruiter position? I have an interview tomorrow with a healthcare recruiting firm and I want to have a few good questions to ask about the job/industry, but it will be a new field for me and I'm not sure what to ask about. Any suggestions? 1 answer - Asked By: stephinrado - 5/8/2006

	I am a student who is working at Deloitte during this summer. What is the dress code during the summer? Being a student my budget is limited so any help regarding specific retail outlets to go to would be very helpful. I am working in downtown toronto for Deloitte (accounting firm) and the summers are very hot here in Canada. Any specific advice on what clothing items this MALE student should wear to work would be helpful. The dress code is "business casual". As if any student knows what that means. 2 answers - Asked By: kamol_yason - 5/3/2006

	I want to become an events/party planner. Does anyone know how I would begin my own business in this field? I am in the process of planning my own wedding and I am having a fantastic time doing so. I have always enjoyed planning things: group vacations for my friends and I, road trips, etc... I could be described as a slight control freak and I am a perfectionist. I know I would exceed, and enjoy my career, if I were to make this a possibility. How do I do it? How do I get my name out there? How much do event planners charge for their services? I have a lot of questions, and hope that people who are self employed would be able to give me some pointers on getting my business up and running. Thank You in advance for your time and help. 2 answers - Asked By: Careerdriven - 4/24/2006

	I want to become an Escrow Officer, does anyone know how to go about it? What kind of training will I need? I know that Escrow is within Title industry in Texas. What would be the best way to get my foot in the door. I am assuming I will have to start as an Escrow assistant and work my way up, but I would really like to find out more about this career path. How does an officer usually get licensed? Are there classes we need to take and exam to take? Any response is appreciated. 2 answers - Asked By: schang25 - 2/10/2006

	Job description of supply and logistics manager? I am applying for a job of supply and logistics manager so I need to know more about the this job 1 answer - Asked By: waelasfour - 6/19/2006

Monster Communities

Teaching Community: Where teachers meet and learn.
ArtBistro: Create and connect.
Excelle: Networking for the career-minded woman.
Nursing Link: Where nurses call the shots.
More Monster Communities

Monster Partners

Scholarships: Scholarships, financial aid and more ways to pay for school.
Education.org: Find top campus and online degree programs.
Military.com: Military portal for the US Army, Navy, Air Force, Marine Corps and Coast Guard.
Financial Aid: Scholarships & financial aid.
Staffing for Government Jobs: Staffing and hiring solutions for federal government agency jobs.
More Monster Partners

Job Hunt Strategy

Six Ways to Make a Recruiter Hate You

If you want to blow your chances with recruiters -- and, by extension, with the companies they work for -- here are six perfect ways to do so.

Resumes & Cover Letters

Rev Up Your Resume to Relocate

Hoping to relocate? Get the ball rolling on landing the right job in the right location with these expert resume and cover letter tips.

Interviewing

100 Potential Interview Questions

Interview questions can run the gamut. You probably won't face all 100 of these, but you should still be prepared to answer at least some of them.

Salary & Benefits

10 Questions to Ask When Negotiating Salary

Most of us aren't natural negotiators, but asking these 10 questions during salary negotiations can help you get everything you deserve.

Attracting Candidates

Facebook for Employers: Make Friends, Not Fans

Recruiting? Go where the talent is. See why recruiters have befriended social networks.

Employee Sourcing

Employment Index

November Monster Employment Index Grows 13% Year-Over-Year, Tenth Consecutive Month of Positive Annual Growth.

Interviewing Candidates

Improving Interview Skills: Learn from the Experts

What’s the key to a great interview? According to experts: Practice, practice, practice.

Workforce Planning

Enhance your Small Business Marketing Strategy with Social Media

Social media. It’s everywhere. But how can it help you? Learn how to utilize social media even monetize it.

For Seekers

Campus and Online Degrees: Advance your career and earn more with an online degree.
Free Salary Wizard: What are you worth? Find out and negotiate a better salary.
Research Careers: Get information on jobs and career paths to help guide your choices
Questions & Answers: Find answers to all your career related questions -- powered by Yahoo! Answers
Resume Distribution Service: Our distribution service puts your resume right in the hands of recruiters.
Resume Writing Services: Our experts will craft a keyword-rich resume that stands out in the crowd.
More Career Resources

For Employers

Career Ad Network: Target your job posting to more candidates on thousands of websites.
Hire Right Background Checks: Explore our background check packages to improve the quality of your hires.
Hiring Home Page: Find the best candidates for your business with Monster hiring solutions.
Job Postings: Find the right solution for your hiring needs. Starting at $99.
Power Resume Search: Monster's new search technology precisely matches people with your jobs.
Resource Center: Find staffing insights, labor trends, HR best practices and more.
Target Post: Connect with skilled, hourly and administrative candidates for only $99.

Social Media

Jobs on Twitter: Find jobs in your area and industry.
Monster Careers: Tune into our career advice and discussions tackling a wide range of topics and industries.
Monster Corporate & PR: Stay up-to-date on the latest news. Get the 'Who', 'What', 'When', and 'Why' on all things Monster related.
Monster Customer Service: Got a Monster question? We've got the answer. Whether you're a job seeker or employer, we can help you find the answers you need.
Monster for Employers: Find advice on hiring.
Follow Us: Check out our many pages and stay connected with the latest industry news, events, career advice and job openings.

Are You An Employer?

Can someone give a potential investor basic guidelines for entering the stock market?

Other Career Questions

Popular Questions

Why honesty, hard work and dedication have no place at work?

Is this normal for an interviewer to do this?

How do I get a job with Dodgy work history and no experience?

What do you say when they ask what you want to be paid? ?

I have applied for over 100 jobs I have gotten no calls for a job interview, what can i do?

What to wear to a job interview VS a career fair?

How can l find a job in the pharmacitical field as a sales and marketing manager,in south africa?

What is NOC Engineer ?. What are his responcibilites ?

Debenhams job application/interview help?

What questions should I ask at a job interview for a healthcare recruiter position?

I am a student who is working at Deloitte during this summer. What is the dress code during the summer?

I want to become an events/party planner. Does anyone know how I would begin my own business in this field?

I want to become an Escrow Officer, does anyone know how to go about it? What kind of training will I need?

Job description of supply and logistics manager?

Popular Job Searches

Popular Program Searches

Popular Articles