Stock Market.....

Factual Questions
1

Here is my plethora of questions:

  1. Are there any stock market help sites for confused people such as my dad?

  2. How do I go about the process of buying a stock (i’m planning on buying some 3 cent stocks, I currently have about $4.60) what has me intrigued as well is that my former teacher just recently became pretty rich. He bought some 3 cent stocks and overnight the change was five dollars a pop! So he basically received $14,000…but I think that was a little thousand more.

  3. Are there any websites out there that will also help me out by giving me up to date cheap (as in low priced) stock brokers where I may buy shares from?
    Thank you, and I hope it doesn’t trouble you.

2

  1. Motley Fool has some great documents about how the stock market works. There’s also Investing for Beginners from about.com (beware popups.)

  2. In order to buy shares of stock you need to open an account with a stock broker. Most of the time there is a minimum deposit required; $4.60 is not likely to be enough. You’ll need at least $20 or $50 for the bare minimum.

  3. eTrade and Ameritrade offer web-based brokerage services fairly cheaply. The disadvantage is you don’t get an experience human to talk to. Again, $4.60 is not going to be enough to get started.

3

[ul]:cool: [sup]The “American Dream” still lives![/sup][/ul]

4

friedo wrote:

But if you are even remotely considering buying 3 cent stock $4.60 is more than a safe investment. I don’t have a cite to back this up but your rate of return on penny stocks, unless you have specific insight and a golden rabbits foot is less than to on par with instant lotto tickets. And at least with instant lotto tickets you have all the fun of scratching off the little boxes which tell you that you’ve been had.

There are hundreds of websites devoted to good, bad and in some cases fraudulent investor information, but since the bubble burst perhaps some of the more fly by night operators have returned to selling used cars and speculative swamp land investments. Rule of thumb, if anyone tells you it’s easy to make an X figure income on a few hours a week save yourself time and money and forget about them.

Some (in my mind) decent sites:

Investor’s Business Daily (they also have a daily newspaper, worth the price)

The NASDAQ Site Great market info and some links to some good basic info sources.

“Wall-Steet.com” more than a few good sources, grain of salt warning.

There are as I said many, many more just remember to doubt anything that sounds too good, if anyone develops a fool proof strategy for beating the market they would either be using it quietly or having used it, sipping drinks on a white sand beach. It is HIGHLY doubtful that they would teach you the secret for $49.95. If any offer seems to good to be true, assume it is.