Quote:
Originally Posted by stewie
Would it be smart for a first timer to invest small amounts in many stocks?
Buy/sell on a daily basis? Or invest larger amounts in well known stocks with low risk?
Posted via RS Mobile
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1) Depends on the size of your initial starting fund. I started out with less than 1k, spread it over 4 stocks --> made an overall gain of $20 over 3 months --> better than loss!
--> in hindsight, wasn't the greatest idea. Learning from my mistake, don't spread your starting fund too thinly if its not large to begin with. If it is small, like mine, there is consequently a bit more risk involved if you want to see more gains than just $20.
2) This you'll have to figure out based on your level of comfort and the size of your starting fund.
As the other posters have stated, brush up on some investing/trading knowledge, decide which style you prefer (frequent trades or long/hold investing, etc.), and begin. You can paper trade if you want, but as already previously stated, it's a different ball game when real money is involved.
Also, watch out for earnings reports - you'll develop a love/hate relationship
edit: to further emphasize this - psychology. You'll be playing against populations of people as well as yourself (emotions, behavioural aspects).