What Is The Minimum Amount I Need To Invest?

In stock investing, especially these days with so much investment taking place with everyday investors using online trading, there really exists no minimum investment amount.  Unlike mutual funds or other investments with groups of investors, there simply is no minimum buy-in amount with investing in stocks.  There are stocks which trade for a couple dollars, or even much less, and there is no one stopping any investor from going out and buying a single share worth a few cents.  There is however some guidelines to investing, including the reality that in order to make decent returns on your investments, you will have to make decent investment amounts.

Starting Out Investing

For the first time investor, the amount to invest is a very important topic.  While there is no specific amount to suggest as everyone’s income and asset levels differ, there is a good guideline: never invest more than you can afford to lose.  Not lose part of, all of.  If $10,000 from your savings is too much for you to lose, than $10,000 is not your amount to invest in the stock market.  Although investing in the stock market is generally considered wise and a safe place to make decent returns on invested capital, one must always be realistic.  There are no guarantees in the stock market and any amount invested should be viewed as in a sense gambled.  While yes the stock market is much a better and more secure bet than a blackjack table in Las Vegas, it is still a gamble none the less.  So when getting started, think of an amount large enough to give some purchasing power, but within your means of loss.

Buying Stocks For The First Time

In order to get a feel for the stock market and how trades work, its best to start investing in stocks in safe places.  These are generally considered mutual funds and blue chip companies.  These places offer substantial security against volatility in the market and are an excellent starting point.  Asses the minimum investment amount you can make, keeping in mind the best and most secure stocks are not usually the cheapest per share price.

Related posts:

  1. What Is The Average Amount Of Shares Per Person?
  2. What Are Penny Stocks?
  3. What Is A Put?
  4. What Is A Blue Chip Stock?
  5. What Is Equity Investing?

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