Invest or not invest in the stock market?

Try a stock market trading game to get your feet wet and learn at no risk. Here's a great article introducing 2 of these free virtual stock markets.

http://hubpages.com/hub/virtual-stock-market-tradi...

Sign up with scottrade since you get 3 free trades.

Look at companies that offer dividends (that is they pay you about 35 cents per share that you own)

Stocks such as Wal Mart, IBM and Exxon are good stocks to invest in, now is a good time to buy low and sell high in a couple of years from.

Remember recession ends and the market will start growing again, try a couple fo banks stocks Suntrust , Wells Fargo and Bank of America are some good investment but do some research and then do some research and then go for it.

Make sure your only investing 40% into the stock market and keep cash handy. Watch Mad Money with Jim Cramer he can give some advice but remember now it is your money and invest it the way you want, but go for strong companies and I stress do some research.

Remember to Diversify your portfolio.. auto are not that bad, keep an eye on ford, only american auto that is not taking bailout and the 41 mpg fusion coming out soon

Good luck..

I wouldn't jump right in to it. Research the issues first and be certain that any money invested is money that you can afford to lose. Remember, all investments in the market are not winners. Some lose big time. First hand, you should have 3-6 months of funds available in an accessible account for emergency funds. Don't ever go without this if you're going to invest in the market as that rainy day could be just around the corner. Literature from brokerage houses or the NYSE could be a place to start learning.

With such a small amount of money, the easiest and the cheapest way to start investing in the stock market is to invest in a mutual fund through your bank. Most banks have investment products like that. And all you have to do is ask your bank about it.

In my opinion, investing in stocks is a little bit like gambling. Because there is a lot of hype, propaganda, and disinformation put out by various participants in the stock market. And the interests of company managers quite often are not aligned well with the interests of shareholders. Which means that quite often company managers rob their companies and pay themselves huge bonuses and salaries at the expense of the shareholders who supposedly own the companies.

Not every company is like that. But the thing is that shareholders don't have much influence over what's going on with the companies they own. And a new manager can easily mismanage and bankrupt even the best company you can find.

It's still possible to make money in the stock market. But you either have to be lucky. Or you have to be good at timing the market and avoid investing for the long term.

Hello,

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org/

I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.

As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org/

If you're stock market illiterate, you need to become literate. Read a book; read ten. Don't invest not knowing anything. And don't invest a lump sum. Gradually put your money in over time so you can buy in at different prices if a stock fluctuates.

The person who advised investing in real estate is mistaken. Real estate is not liquid and plenty of people are losing their shirts in real estate right now. Historically, real estate barely keeps pace with inflation. If you want to invest in real estate, fine, but DON'T think of your own house as an investment. It most certainly is not.

Before you even think about investing, you need to be literate, and know what you are doing. Also, with only a few hundred bucks, you will never make any money anyway, so my advice is to take a year, study the markets, then if and when you do have extra cash to invest, begin. Read financial journals, Money Mag., BusinessWeek, Fortune, etc., and watch business shows, especially CNBC.

Do your homework before ever spending wildly. You wouldn't go out and purchase a car without knowing what you were doing right?

I think you must focus on stocks which have a future. Educational products may be a long term as the modern nations become Information Age economies with the contracting out of Industrial Age work. Set rules for buying and selling. Stick to your your rules. Expand both your intellectual and emotional grasp of the market as you become more involved. I really think most people would advise that $10,000 is a minimum starting cash position. Yet, there is no time like today to get started. I reside in the U.S.; but, remain biased to Asian stocks in the right sectors. China is like the U.S. when it the nation was full of people with the energy to succeed and bright vision of their future. Use your sense of world trends in making decisions on the making your decision. Consider not buying into the great Green movement because the cost of Green is still too high to be economic.

You are wise to want to invest surplus funds, however before you invest in stocks or anything else, there are many things to consider.

What are your financial priorities?

Do you have an overall financial strategy?

Do you have any debt?

What is your knowledge of investment options?

The source page I have listed gives many tips for the first time investor.

I also believe investing in stocks, even in the best of times is quite a tricky investment vehicle. I am certain investing in mutual funds with holdings in the best performance sectors of the global market place is the safest investment in any economic climate. http://www.mutualfundwealth.com/

I'm from the UK, so can't answer for the USA but based on your total lack of knowledge and the low capital you are looking to invest it is highly unlikely you will make anything.

Id you are really still keen to go ahead look at investing in a fund or something. Still unlikely to make money though.