I want to invest in some type of stock?

[aleish]

I am young andI have never invested in stocks before anyone have some tips or suggestions. What stocks are likely to rise... ect.

[Broken Arrow]

Uh huh....

Well, until someone more experienced comes along, I recommend perusing E*Trade. From there, you should be able to do some trading on your own.

However, I don't think it's a good idea to buy individual stocks. I mean, unless you really want to build your own portfolio from scratch, individual stocks in themselves run contrary to the principal of diversification. Personally, I think an index fund is better, such as the S&P 500. Mutual funds are the way to go IMHO.

Speaking of index funds, a good place to learn some investing basics is to do so in a tax shelter such as your 401k or IRA.

If you still insist on buying individual stocks, may I recommend starting out with dividend stocks? Sure, they're not going to shoot through the roof like an American Idol winner, but they tend to be fairly stable. In fact, it's because of that fact that many companies opt to pay dividends to make it attractive. Walmart stocks is one such example. Microsoft is another now. At least, I think it's a good way to get your feet wet until you can figure out what else you would like to do.

[risknothing]

I use scott trade and have had no issues. Buying individual stocks is some times scary. I started only a month ago and am up a modest 7% but i could very well go down huge tomorrow. I do more of my investing in Vanguard Mutual funds.

[Ima saver]

I agree, I would stick with index mutual funds and let them pick the stocks. Later on, you can try your hand at stocks.

[Aleta]

I too like Index Funds. I'm with Vanguard and this year, I switched my IRA's to a Target Retirement Account. It's stocks and Bonds according to the year that you retire. It is so much easier and I feel like it's hard to beat the index funds.

Aleta

[risknothing]

I opened up two recently, The target retirement 2045 which im up 6.8% in about 3 months and the International Growth fund which I opened yesterday.

The target retirement accounts are really nice.

[PRICEPLUS]

You also may want to take a look at Exchange Traded Funds. Remember to never invest in what you cannot explain!

[disneysteve]

I think investing in individual stocks is okay as part of a well-diversified portfolio. The problem is the average person, especially one just starting out, can't afford to diversify. That's the great benefit of mutual funds. With one check for a modest amount, you get a piece of dozens or hundreds of stocks. It would cost thousands and thousands of dollars to get that same diversification on your own.

Build your base portfolio with some good no load, low fee mutual funds, index funds are probably the best. Once you've done that, if you want to take a small part of your portfolio to speculate in some individual stocks, go right ahead. As long as you do your homework and research the stock well before investing.

[JBinKC]

It takes lots of research research and more research. Look for companies that have a low accounting value coupled with an earnings catalyst and beat the professionals/crowd to the situation and diversify among those few you find.

If you start using a mutual fund good luck. I have noticed using traditional macroeconomic indicators to better time the market are becoming leading indicators much earlier than it has traditionally.

[poundwise]

Here are a few sources to get you started:

MSN Money: Start Investing

The Motley Fool: Start Investing

Kiplinger.com: A Beginning Investor's Best Friend

[lucasrd]

I've been investing in individual stocks for a little over a year now. I consider this my "Mad Money" as Jim Cramer calls it. I am already maxing out my 401K, investing into other mutual funds, and saving in MMA and CDs. This is just extra $$ i have and am playing with.

I am investing in Blue Chip cyclicals with low P/E ratios and high projected growth rate (relative to their P/E). I only buy stocks where I know who the company is and what they do.

I currently own the following in my portfolio:

COP - Conoco Philips
LOW - Lowes
BAC - Bank of America

As soon as the FED starts to ease rates, i'm going to purchase a best of breed home builder, an auto stock (probaby Toyota) and a low-multiple tech stock like Intel.

[LivingAlmostLarge]

My DH has a set of mad money too, it's our EF sort of, and money if he lost I wouldn't cry too much. I have no idea what he has but he's buying a video game maker I think.