Investing beginner needs help

mishu said: "Hello everyone, I just recently started thinking about investing and after doing some research (well, mostly reading quite a few articles from The Motley Fool), I'm thinking of actually buy some stocks. But of course, I do have some questions which weren't answered by the articles I've read so far, so I was hoping to get some answers here. Here it goes... I was thinking of starting to invest in plain stocks, rather than buy a mutual fund or opening an IRA (I'm only 19, I'm not thinking about my retirement just yet). Of course, I could be wrong, so if any of you have any suggestions why I shouldn't go with standard stocks, please let me know. Also, I was wondering if trading online was the way to go. I see no disadvantage in trading online, but I do see some advantages: trading from anywhere with an Internet connection, trading anytime, etc. Again, if there is a better way, please tell me. Also, please tell me which online brokerage firm you prefer/use (if any). I was also wondering what kind of returns I could expect from this? And over what time frame? I read in some articles, that you should only invest money you don't really need right now, because it may take time for it to gain value. So if I were to invest $2-3000 today, what could I expect to have in a year's time? Also, related to this, I had a question about DRIPing. How does divident reinvestment actually work, and how can I include it in my return calculation? I'd appreciate some information on dividents (how they work, and how to calculate them in the total return). Last but not least, I was wondering if any of you had any experience with the Motley Fool newsletters, and if you could recommend them. I was thinking of subscribing to Inside Value (or maybe Hidden Gems), but I'm not sure and would like to know more. If I'm not supposed to mention them here (commercial reasons or whatever), I apologize. I eagerly await your replies. Your newbie soon-to-be investor, mishu"

HappyHarry said: "Hello there, Do you plan on making small deposits into your account regularly?"

mishu said: "Hi, well, I'm still a student, so constant income is still a while away, but I will try to add to the portfolio as often as I can. Just like a savings account.. when I have a little extra put aside, I can invest it there. These last few days, I've also been reading about investing in some plain-old index trackers (either that or mutual funds). While these tend to give a bit less profit than actually picking good stocks (which I know I can't do yet), they also provide a safer and time tested method of increasing return. So, I was thinking of starting off by either investing in a tracker directly, or in a passively administered fund. Then, once I have some money in there, I could start trying out individual picks (until then, I'll settle for the virtual funds I have put in them). What do you think? mishu"

HappyHarry said: "I think it's a great idea. Since you're young, the main thing you have on your side is time. If you can get a positive for many years in a row, you're bound to have a good return. I think it takes a lot to make money as an active trader these days, so a long term approach like an index fund is a good idea, especially if you don't want to manage a portfolio."

mishu said: "Thanks for the quick reply! I've started a virtual portfolio and added the S&P 500 to my list of stocks. I'd also like to add other indexes to my list. Any suggestions would be appreciated.. Then, after I've monitored them for a while to see how they work out, I'll put some real money into them. mishu P.S. Perhaps you could please answer my divident question? I still don't get how to incorporate them into my return value (should I decide to reinvest them into stocks). Thanks!"

fxtrader78 said: "www fxpalace. com is absolutely free and contains easy to understand forex tutorials, no annoying advertising and popups, very well designed. A great place for a novice."

Rbreb13 said: "HAHAHAHAHA, I love it when noobs bring back 3 year old threads! :lamer:"

Mikefx said: "Keep looking on internet for various investment idea. When you find one interesting, look into it more. If you think that is the one for you, go for it!"

JAP said: "[quote=Rbreb13;60549]HAHAHAHAHA, I love it when noobs bring back 3 year old threads! :lamer:[/quote] Even more so when they are spammers :p"