Question by Alex: I?m interested in investing in the stock market. Penny stocks, low-mid-high risk? Im 20 YO have about 10k?
I?m looking to invest some money. I want to get some suggestions where to put it. Penny stocks maybe. I?m looking into renewable resources and robotics, possibly oil. Any and all well thought out suggestions are appreciate. Heard something about hedgefunds too? Thank you.
Best answer:
Answer by shags1_23
For now, find a bank CD with a good yield. Park the money there while you learn more about how different investments and investment strategies work.
Some recommended reading:
-Wall Street Journal Guide to Understanding Money and Investing (the basics)
-The Neatest Little Guide to Stock Market Investing (a good introduction to investing strategies and value investing)
-Webster?s New World Finance and Investment Dictionary (you don?t have to read it, it just comes in handy when you come across a term you don?t recognize)
-Technical Analysis for Dummies (technical analysis always helps to determine if your investment is going bad)
Also, some other things you need to learn about are:
- taxes (and wash sales; I didn?t know about wash sales until one of my mentors told me about them)
- different brokers and broker?s fees (some charge you if you do nothing!)
- bankruptcies (a lot of people have lost money buying shares of bankrupt companies)
- market terms and lingo (it can be confusing at first)
As for penny stocks, ugh, no thanks; that?s the best way to get caught in a ?pump and dump? scam. I think alternative energy is the next bubble, and bubbles always pop, so it?s good if you can figure when to get in and out; it?s bad if you can?t. Oil is currently a speculator?s game; be aware or beware. Hedge funds are generally for investors with a lot of money to invest (think ?millions?) Robotics might be something. But don?t ever fall in love with a stock; it doesn?t understand what love is, and it won?t love you back. Recognize stocks only for what they are: a way to make money.
I know you don?t want to hear ?Wait and learn more? because I didn?t want to hear it when I started out. But, the first year I got into the market, I lost $ 10k.
Good luck!
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