Wednesday, April 28, 2010

You don't need thousands to Invest in stocks

When most people think about investing in the Stock market they all think they need thousands of dollars to make any money. That's not true, it may apply to higher dollar stocks ($15.00-$200.00 stock prices). Lets take one of the stocks that I'm following (You can see them listed on the right side of your screen) (Note: Pricing of this stock was made on 04/28/2010 at 2:37.52pm EST and my have changed since) . PVFC: Pvf capital corp. ($2.322 +0.292) Lets say you just opened up a Roth IRA and have invested your Maximum limit of $5,000.00USD The best way to invest in a stock for the first time is to spread out your buys. Lets say you want to invest $1,000.00 into Pvf capital corp. Invest $200.00 dollars at a time. Lets do the math $200.00 ÷ $2.322 = 86.132644 Round that down to 86 shares. This means when the stock goes up 1 cent you will make 86 cents. If the stock goes up .36 cents you will make $30.96. That beats CD's and money markets any day. I suggest investing the rest of your money in a .10-.20cents spread when the stock drops to that level. If you are investing for the long haul it is not that important to invest new money when the stock is down but is recommended. Remember to do your own research when investing in the stock markets. If you do invest in the market and the stock goes down or stays flat for 3-6months I would recommend selling and buying another stock. Remember to add in brokers fees. If you are using a company like Share builder it will cost you $49.75 to buy all of your shares and a extra $9.95-49.75 if you sale them all at once or in segments.

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