Tuesday, November 30, 2010

best investments for small amounts of money

best investments for small amounts of money ; I don't have much money, and I do not know much about investing. but I do know that I need to start now and not later.
Any suggestions to help me secure a comfortable future? Try www.sharebuilder.com you can buy stocks for 4 dollars. it is based on paying a little bit at a time for the full price of the stock you want. for more details visit the website.

First, you no longer have a penalty (at least in Scottrade and similar types of brokerages) for buying less than a full block of stock. so you can buy as few shares of lots of things as your money will allow. Recently I saw an opportunity for Baker Hughes Tool but only had enough free money for something like 85 shares. The commission was still $7. it was still enough to turn a profit, but if the opportunity arose when I had more free cash then the marginal value would have been better.

Say you had a thousand available (better still, $1,007) for one trade. then you subtract the commission for a trade and divide the remainder by the expected available price of the stock you are interested in. I say 'expected' because if the price is rising and you buy it "at market" then you may have to cough up some extra cash to cover if the price edges above your personal limit. then you could place a limit order at your maximum number, but some other brokerages charge extra for anything other than market orders.

The Standard & Poors 500 list is a pretty broadly held list that people scrutinize often. They are listed for the comparatively safe prospects of market value growth. Not skyrockets by any stretch, but COMPARATIVELY solid firms. Here is a list of those that are under $10 per share: TLAB, DYN, Q, F, CPWR, CC, NOVL, LSI, UIS, JAVA, THC. Research them as best you can. then if one interests you, buy some. By the way, Sharebuilder.com is good for buying with limited resources–but not speculative trading, there is difference. If you are investing and don't know what you are doing, then this list will help. You can certainly do worse.

Try micro investments.

http://www.wordhugger.com

Putting up a little amount of money one time is not going to secure your future. You need to continually put money in your portfolio and invest in companies you are comfortable with. Using this money as an incentive to learn more about the market is the way to go. I recommend you look at ETFs (exchange traded funds). think about a sector or country that you believe in and buy an ETF for that. I think that is a good start to familiarize yourself with the process.

I would suggest putting as much of your income as you can into your 401K. some employees will match your contribution, or a portion thereof, so you are adding even more to your investment. If your company does not have a 401K, I would open a Roth IRA account. A Roth has a lot of tax advantages over a traditional IRA.

As far as choosing your investments within those accounts: that would depend on your age and desired level of risk. If you are younger I would put a majority of the investment into stocks, which are riskier, but over the long run present greater returns than bonds or other fixed income instruments. Depending on your age and risk tolerance you can adjust your investment balance accordingly.

I would research some of the larger investment firms and find one that suits your needs (low minimums and no load funds). Check out Fidelity. I think they have some good no load funds.

Buy Schlumberger – they make oil-services equipment – safe stock – will be around for a long time: http://top10traders.com/ViewHolding.aspx…
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