How to start investing? I only have about $500....

[speed dawg]

So, I got a little Christmas money, that I'm supposed to use for clothes or eating out or what not. I figure I'll try to figure out a little bit about the stock market.

Any ideas where to start? Where do you technically 'buy' anything? Like Stocktrade accounts? Coca Cola? Heck, even Bitcoin I guess (but probably not). I've seen where I can buy gold through some online banks, but even that takes a minimum $1,000.

 

[Bible_Belt]

That's not enough money to do much. I think you can trade e-mini futures with an account that size.

If you insist upon stocks, do not be tempted by penny stocks. If a stock is not listed on nasdaq or nyse, it's probably a scam.

I would screen exchange-listed stocks priced about $2-5, with decent volume, and watch a list of 52 week highs each day. Monitor charts and buy 100 shares of something as it goes sideways a little while after setting a new high.

Links to check out:
www.elitetrader.com
www.siliconinvestor.com
www.hardrightedge.com
www.interactivebrokers.com

 

[Billtx49]

Put it in a maximum interest earning account for now and think about your future options with some time involved beforehand. Do Not think you can get rich or an important incestment opportunity from a very small monetary gift.

 

[PrettyBoyAJ]

Invest in Crypto and turn that 500$ into 5k to 10k etc. Why put it in the stock market when it’s going to crash soon?

 

[switch7]

That's not enough money to do much. I think you can trade e-mini futures with an account that size.

If you insist upon stocks, do not be tempted by penny stocks. If a stock is not listed on nasdaq or nyse, it's probably a scam.

I would screen exchange-listed stocks priced about $2-5, with decent volume, and watch a list of 52 week highs each day. Monitor charts and buy 100 shares of something as it goes sideways a little while after setting a new high.

Links to check out:
www.elitetrader.com
www.siliconinvestor.com
www.hardrightedge.com
www.interactivebrokers.com

Lol do you think his $500 bucks will last long doing this? He may learn a bit but the money will be gone in a few weeks unless he stays out of a leveraged product. Learning to trade or be your own investment manager takes years of practice and even then most people cannot be successful with it...

 

[speed dawg]

Lol do you think his $500 bucks will last long doing this? He may learn a bit but the money will be gone in a few weeks unless he stays out of a leveraged product. Learning to trade or be your own investment manager takes years of practice and even then most people cannot be successful with it...

That's what I'm afraid of. I don't have the confidence to just simply read up on a few things and then throw the money around.

 

[jaygreenb]

For the amount of money you have, crypto is probably your best bet to make any decent amount of dough.

 

[sazc]

I've had luck with betterment.com

$12k roi on what I have invested.

That or look into index funds, or start yourself a Roth IRA

 

[wifehunter]

Zee Bitcoinz!!!

Is no give sh!ts! Is DJ money!!

 

[wifehunter]

Invest in Crypto and turn that 500$ into 5k to 10k etc. Why put it in the stock market when it’s going to crash soon?

 

[ubercat]

Tenacity had a nice detailed thread about how he spreads his index funds. Check out his back posts in this forum Bible belts advice is good think about how low Volvo stock went after the scandal or here in Aussie we had a royal commission into banking announced and for 2 days bank shares took a dive and then came back. But honestly I've got a way smart friend who is a fund manager with 20 years in and she doesn't always get it right even with all the professional information sources and analysis she has it her fingertips. So I suggest try and save some more money get into an index fund. Vanguard seems to be the one thats mentioned around here and it certainly has a low fee structure

 

[synergy1]

I would use the 500$ to buy a few good books on the subject and give yourself an education, should you want to invest/trade in the markets in the future. being in the markets requires a lot of requisite knowledge. All of the best investors, and even stock traders can rattle off dozens of books they read to get started. The best always broaden the scope of their education.

 

[wifehunter]

I would use the 500$ to buy a few good books on the subject and give yourself an education, should you want to invest/trade in the markets in the future. being in the markets requires a lot of requisite knowledge. All of the best investors, and even stock traders can rattle off dozens of books they read to get started. The best always broaden the scope of their education.

No need to spend $$$, we have the internet!!!

 

[ubercat]

The internet won't cover subjects to the depth a book will. Otherwise Amazon book section wouldn't exist. The author is selling you a book if you go to a website who knows what they're trying to sell you on. If you prefer just Kindle it. The only thing that doesn't leave me with a massage is that I think if you buy the physical book you should get the Kindle Edition for free.

 

[Von]

3 ways:
1) Invest the money in your mind and in your health... so you can multiply this money again one day.

Take a serious martial art/fitness program class.. or gym
Buy books on self-improvement and finance
Take cultural lessons (music, arts, dance)
Health treatment (dentist, facial surgery etc...)

2) Invest the money in Stock, Mutual Funds, IndexFund with a 10 year horizon with strong Dividend Reinvestment... diversify into 2-3 investments max and never look at them again until 10 years later (ask for automatic dividend reinvestment)

3) Treat yourself to a Spa and your favorite restaurant

 

[ChristopherColumbus]

BTC.

 

[ubercat]

@Fruitbat thanks that was perfectly timed. My Chinese girlfriend has gotten to share trading

Given they like gambling so much no surprise there. I've been trying to explain what you covered but you were far more articulate. @Bible_Belt favours active trading so hopefully he can chime in on the discussion.

One thing I am curious about. I read a rough rule of thumb that you shouldn't be investing anywhere until you own 40% equity in your property. Which is what I have followed personally. But I couldn't find that Googling at all

Is that smart? Or am I just making s*** up

 

[ubercat]

It was for the g/f. My house has gone up over 40% in 4 years so I got my equity for free. It's the bottom of the market too so it's unlikely to go down more than 10% even if there is a crash.

Her apartment hasn't increased in value. She has 34% equity at the moment. And I was suggesting that she should try and get that up to 36% at least before she starts investing. Obvious reason being that if you're ahead of the mortgage a bit more of every payment you makeis capital so it's the gift that keeps giving.

 

[ubercat]

Interesting. What's AMCs PE and PEG? And the growth driver e.g. are they expanding into New Markets with little competition?

And how do you trade on the AIM market. I confess I'm a complete newb at share trading

 

[ubercat]

Gawd that is speccy. I just hope they know who to bribe.

Thanks I'll check it out