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How do you get a good investment into the stock market?
#entrepreneur #finance
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5 answers
Updated
Jolanta’s Answer
Investing in the stock market is risky, but full of rewards too. If you are new to investing, consider investing in mutual funds or index funds, spreading them across various regions and industries, based on your risk tolerance. There is plenty of great information out there on how to understand your tolerance for risk and how to invest is a balanced portfolio.
Such as: https://www.fool.com/investing/how-to-invest/stocks/
https://www.fool.com/investing/how-to-invest/
Such as: https://www.fool.com/investing/how-to-invest/stocks/
https://www.fool.com/investing/how-to-invest/
Updated
Debbie’s Answer
Do your research and get yourself educated. There are so many resources available to become educated on the stock market. Pick a few stocks to follow and research the companies. Think about what opportunities there may be for growth for these companies or are there risk factors such as something that may be going on in the economy or the world that may impact the companies performance. Reach out to a local investment firm to see if a Financial Advisor would be willing to spend time with you and be prepared for your meeting by making a list of questions. Set up your own investments. It does not take much to get started in investing. Finally, get educated on the up and coming currencies - crypto as an example. This will set you apart from others!
Daniel Solis
Help with retirement planning, individual investments, business retirement plans.
2
Answers
Denton, Texas
Updated
Daniel’s Answer
To be able to better answer your question about getting a good investment in the stock market I would want to understand what your end goal is and how much risk or volatility you can tolerate along with how much time do you have to achieve this goal?
To begin you must start with how much money do I have to invest? There are some investment firms out there where you can do it on your own on their platform/website and you can invest as little as you want or as much as you want but with little to no help and don’t have to pay fees or commissions.
There are other investment firms that you can you can use their platforms/website to invest and requires a minimum amount to invest and you pay a disclosed commission/cost before you invest and they - a robo advisor or a licensed advisor will help and educate and guide you along the way for that cost. This is a typical brokerage firm.
A strategy when buying stock in the market is “buy low and sell high”. This refers to you buying stock of a company that has dropped in value due to market conditions. You or your advisor see this as an opportunity to buy stock in this quality company and is currently at a discount. When market conditions improve and the value of your stock increases then you sell when it peaks. There are no guarantees so do your research.
Another strategy is buying stock in company(s) that pay dividends. Many companies pay dividends every quarter and you can determine to keep the dividends as cash or reinvest them. Keeping the cash can be a source of income or reinvesting the dividends can be additional funds to purchase more of the same stock.
Lastly, if you feel that investing your hard earned money into only one stock is too risky then maybe looking into a diversified mutual fund or a diversified ETF- (exchange traded fund) will suit you better as your funds are buying stock in multiple companies within one Mutual Fund or one ETF and spread the risk into various companies, segments, areas etc.
I’ll end my answer with this. Market conditions are constantly changing favoring certain segments or certain companies at certain times. Do you want to invest with an advisor with guidance and pay a fee or commission or do you want to invest on your own with your own research and pay no fees or commissions?
All the best!
Danny
To begin you must start with how much money do I have to invest? There are some investment firms out there where you can do it on your own on their platform/website and you can invest as little as you want or as much as you want but with little to no help and don’t have to pay fees or commissions.
There are other investment firms that you can you can use their platforms/website to invest and requires a minimum amount to invest and you pay a disclosed commission/cost before you invest and they - a robo advisor or a licensed advisor will help and educate and guide you along the way for that cost. This is a typical brokerage firm.
A strategy when buying stock in the market is “buy low and sell high”. This refers to you buying stock of a company that has dropped in value due to market conditions. You or your advisor see this as an opportunity to buy stock in this quality company and is currently at a discount. When market conditions improve and the value of your stock increases then you sell when it peaks. There are no guarantees so do your research.
Another strategy is buying stock in company(s) that pay dividends. Many companies pay dividends every quarter and you can determine to keep the dividends as cash or reinvest them. Keeping the cash can be a source of income or reinvesting the dividends can be additional funds to purchase more of the same stock.
Lastly, if you feel that investing your hard earned money into only one stock is too risky then maybe looking into a diversified mutual fund or a diversified ETF- (exchange traded fund) will suit you better as your funds are buying stock in multiple companies within one Mutual Fund or one ETF and spread the risk into various companies, segments, areas etc.
I’ll end my answer with this. Market conditions are constantly changing favoring certain segments or certain companies at certain times. Do you want to invest with an advisor with guidance and pay a fee or commission or do you want to invest on your own with your own research and pay no fees or commissions?
All the best!
Danny
Anthony Kofi Hene-Amoah
Translation, Editing, Project Management, Research and Evangelism
174
Answers
Jema, Brong Ahafo Region
Updated
Anthony’s Answer
Please, note the following :-
1. This depends on the type/kind of
business or investment, and
favourable output of the
business.
2. Consideration of the goal/goals.
3. Consideration of the extent of
INTEREST and KNOWLEDGE in
the business.
4. Consideration of the extent of
the EXPERIENCE and ABILITY
to perform the various
activities.
Best wishes to you.
1. This depends on the type/kind of
business or investment, and
favourable output of the
business.
2. Consideration of the goal/goals.
3. Consideration of the extent of
INTEREST and KNOWLEDGE in
the business.
4. Consideration of the extent of
the EXPERIENCE and ABILITY
to perform the various
activities.
Best wishes to you.
Updated
Pamela’s Answer
There are many ways to approach investing. Get yourself educated for sure. I would recommend mutual funds and index funds over a single stock purchase as an entry level approach. Find a mutual fund that has the single (or multiple) stock(s) you have an interest in as a part of the portfolio. As an entry point to selecting a stock, invest in companies that you purchase products from - video game manufacturers, mobile phone companies, the manufacturer of your car, your tennis shoes, etc. Start small, then ramp up and expand as your knowledge base grows. Go to fidelity.com. They offer a vast amount of information there. You got this!! Happy investing!