Got 200 bucks to invest. Any advice??
What is your goal? Are you trying to get high returns at potentially high risk? Are you trying to find a solid stock that hopefully outpaces what you could get from buying a CD?
I'm sure you'll get lots of suggestions if we know a little more about your mindset.
1. Have a look at _The Intelligent Investor_ by Ben Graham. A classic. Learn about value investing, which has proven the most powerful method over the long term.
2. I do not recommend a newbie playing with options, as they're a good way to get wiped out quickly.
3. I don't see the logic to Kelrod's advice, as the # of shares is irrelevant.
4. Save some more money. With $200, you're automatically down 5% just from commissions ($5 to buy, $5 to sell), and that's assuming you only buy 1 stock, which means no diversification. Not much point to investing only 200.
5. Avoid being taken in by either hype or panics. You want instead to take advantage of other people's excessive optimism and pessimism.
6. Look at my "new stock picks" thread. ;)
Why not try options? There are three of them I’m thinking about. Already heavy into them but further out of the money. These are a bit quicker to show a profit if the stock moves up a small amount as they are close to the money.
GEW CH, 14 dollar call for March ask is 1.66 (GE)
AA DN, 13 dollar call for April ask is 1.79 (AA)
DLY BQ, 16 dollar call for February ask is 1.78 (DELL)
Just as an example as there are a lot of stocks out there, and you would only be able to buy one contract (100 shares) for 200 or less but for a hundred shares of either of them would be six times or more for what you want to invest. Notice they are way out in time, you can sell whenever you want, but will give time to overcome market corrections, hopefully.
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