newbie stock question

[jinduy]

if i have only $5000 in my savings and am an unemployed student (but actively searching)....how much should i invest to try to learn the market n such?

 

[jonmullen]

just start with like a grand and remember to diversify...being a student you will probably want to stay mostly in the stockmarket for now since it can have the biggest gains...and the biggest loses but your young its not like your retireing in a few years.

 

[Doggiedog]

You also have to realize how much commissions will cost you. If you are paying $20/trade, on a $1000 trade, you will have to make 4% just to break even.

If you really aren't trying to make money, why bother even spending money. Just use one of those stock trackers and do it make believe.

 

[Orsorum]

The Motley Fool and Morningstar both have excellent sections for beginning investors. I would also recommend (if you have the time in your course schedule) taking some accounting, economics and finance courses (one or two accounting courses, maybe an intro micro/macro course sequence, and, at least my school offers this, a class on investing, capital, financing, etc.). That is the mix that I have pursued, and it has worked great for me.

 

[Azurik]

$1000 is not really worth "diversifying". Your commissions and fees would eat that up.

 

[damiano]

Originally posted by: Azurik
$1000 is not really worth "diversifying". Your commissions and fees would eat that up.

yep