SHuD I WAIT FOR THE MARKET TO DROP LOWER?

Question

OK im 20 years old and i want to get into the stock market game.my dad has done it for many years but hasnt done anything in the last 5-6years due to losses so im gonna start fresh.The thing is i follow market news and the market has gone down a whole lot..so..i want to invest around 1500-2000 dollars...my questions are...which stocks shud i invest in that are cheap,look good in future...i know i shud invest in 2 stocks not just invest the full 1500-2000 on 1 stock so what 2 stocks that are within my price range i can get a good number of shares and second question how much more should i let the stock market drop because if there is a stock worth lets say 85bucks a share right now and few weeks later it drops down to 20bucks i can pick it up there im just saying i have some stock knowledge please i want real help i tried contacing jim cramer but i will never get a response and a broker will eat up all my money so please be kind and help me just trying to help my family out of poverty

Answer 1

All right, here's some honest advise from a 53 year old investor.



1. You can't get rich quick

2. Diversify across all industries and countries.

3. Buy and hold. Never sell unless you need the money

4 Stocks are high risk, high return. Don't invest in stocks if you think you'll be needing the money in the next 10 years or less.

5. Don't listen to anyone who recommends individual stocks or markets. If they knew of any good deals or secrets why would they wouldn't be telling you?



What I'd do if I was you?



1. Open an account with Schwab, Ameritrade or similar

2. Buy ETFs where you can get amazing industry and world diversification at low cost

2. Dollar cost average. You cannot time the market, trust me.



There is a lot of good material for you to read on the net, google "passive investing" "diversification" "exchange traded funds" "dollar cost averaging" and similar.



I practice what I preach and I am delighted that you asked, I am only too pleased to help another human being.

Answer 2

This is a standard answer I usually give. You don't seem to have an idea how to go about investing in stocks from the questions you are asking.

I would have you go to www.morningstar.com and take their free course in investing in stocks.

Then I would direct you to www.mystockfund.com for a broker that is free except for the $5.00 a month maintenance fee that you would pay with any bank account.

You might also want to try WWW.bettinvesting.org. They are a non-profit organization that will give you a lot of help and support.

I buy a lot of Philippine stocks because I am living here. However, I also bought an American stock last week that has been going up for the last 10 years. It went down $7 in the last week. I am holding it because I bought it for the LONG TERM.

Remember to buy quality stocks for the long term ( 5 years or more) and buy them at a good price. A good company is not a good deal if you paid too much for it.

Get educated in stock investing before you give your money to anyone. There are a lot of people who will advise you on what to buy. It is not their money.

Answer 3

1. Your family can't be that poor if your dad has invested money in the past, and you have some money invested now.



2. 2000 is a nice start, but remember that commisions are charged even when you pick the stocks yourself.



3. Don't pick up a stock, any stock that fell from $85 to $20...there's a reason this happened, and unless you have inside info, or know a marketmarket who knows what's up and knows that it's going to kick back up...don't buy it.



4. Easy quick money, hardly ever comes from stocks, expect a 20% gain a year, a generous estimate already.



5. Want a quick increase in money? Look into option...also be aware that it's easy to lose EVERYTHING in options, but you can also get a 1000% gain in a week.

Answer 4

The long-term five years old bull market could be over and a new long-term down trend just started. Chances are high that market will go down toward the long-term channel support. First sharp decline could continue until the end of October.