How to Invest in Stock Market for Less Than $100 Read more: How to Invest in Stock Market for Less Than $100 |

Investing in stock market can be profitable most especially if you will start trading the cheapest stocks available today. In today's market, seems all the stocks are bleeding and you can buy Stock Shares for way below the price compared last year.
Difficulty: Moderate
Instructions
Things You'll Need:

* bank account
* stock broker account
* valid mailing address
* social security number

1.


You need to have a valid bank account in United States to fund your investment in this country. Add funds in your Bank Account and search for online Stock Brokers. Compare the prices and go with your guts in selecting your broker. There are only few companies that I like- Sharebuilder or ING, eTrade, Scottrade, and Ameritrade. Check them out!
2.
2

If you want to open an Online brokerage without minimum and inactivity fees for having an account with them, then try sharebuilder dot com or ING. You can trade for under five dollars and keep your account without paying the monthly subscription. It is called Basic Program and you can upgrade it later if you want to.
3.


Enter your complete name, mailing address, Social Security Number and Banking account. You cannot use your credit card to fund your stocks trading. You have to have cash in the bank to deposit it in your account. You will need $1 for Deposit to open your Share Builder account.
4.


Wait for two or three days for the trial deposits made by the stock broker into your bank account.
5.


Go back to your online broker account and confirm the trial deposit. Start searching for the stocks offered by ShareBuilder and place an order of whatever companies that you would like to Invest.
6.


They also offered Express Funding for Real-time Trade, read the fees with this trading. So as long as you have money in your Bank Account then you can trade in real time.
7.


You can also automate your investments but remember that there will be always risks involved in investing.

Investing In The Stock Market

Had you invested in real estate over the past 30
years or so, you would have done very well.However, prices have now reached such a level
that it may not be such a good investment especially in the short-term. Over the long-term,
prices are sure to appreciate once again. Outside of bricks and mortar, the stock market still
provides the skilled individual with one of the best opportunities for a rise in capital.

With the globalization of markets now accomplished enabling an individual to trade in almost any market across the globe from anywhere, we will concentrate on the American market, which is still the biggest and most liquid market. Having decided to concentrate on the American
market, you now must decide on what sort of companies offer the best opportunities for making
a profit.Small technology or biotechnology companies can sometimes offer spectacular gains in
the short-term. However, your chance of picking them out of the bunch in advance of the
significant move in their share price, unless you are equipped with insider knowledge,
is pretty slim. Therefore concentrating on large established companies is a much safer route
to profits.Concentrating on the constituent members of the S&P 500 index provides the
investor with ample scope for investment in established companies. It is therefore best to concentrate your attention on the latter to provide the necessary fodder.

When viewing companies in an index such as the S&P 500, you have got to be aware of the
different sectors within it. In order to reduce your risk, it is inadvisable to invest in
more than one company in any one sector at a given time. Picking on a sector that is
currently advancing, or about to advance, and then looking for the most eligible company
within that sector likely to profit from the favorable tide can be very rewarding. The
company chosen need not be the market leader in that particular sector. If Xxon Mobil, for
instance, dominates the Oil and Gas sector, a second or third line company in that sector, such
as Occidental Petroleum, may give you a much better opportunity to profit from rising
oil prices for example.

Ideally, you are looking for an established company in a sector that is advancing, or likely
to advance, that is paying increasing dividends from rising profits, and with a p/e ratio
( that is payment/earnings) less onerous than it's peers.P/e ratios are only relevant when
comparing companies within the same sector. Another approach to picking a company whose share
price is likely to advance, is to pick a large company with good prospects when it is
temporarily out of favor with the market. Both AIG Group and Pfizer have been in the doghouse
over the last couple of years enabling astute investors to profit from their short-term
unpopularity.With this strategy, timing is of crucial importance.

If you segregate ,say, $20,000 as starting capital for investment purposes from other funds
required to live from month to month, the best place to initially put it is into a high-
interest bank account until such time as you are ready to invest. This account should pay
4% or better interest per year.You would then limit your investment in any one share to
15% of the total, or $3,000 including dealing expenses per investment. It is inadvisable,
especially in jittery markets, to have more than 70% of the total invested at any one time.
The market has moods and when everything looks black on the horizon, good shares will fall
back with the bad and the ugly ones giving you a chance to buy a good share at cheap prices
for recovery.

If you do your own research, it is best to use an execution- only broker who are cheaper
than those offering investment advice. Pick a large broker with many years service in the
market. If you want a broker offering investment advice, go for one who has a proven record
of offering impartial advice in the market as recommended by a friend or acquaintance

Investing In The Stockmarket

The term Stockmarket is a concept for the mechanism that enables the buying and selling (trading) of the shares and stocks of publicly held companies, other securities and derivatives. The stocks and shares of these companies are listed on the stock exchanges, which are entities (either mutual organizations or corporations) specialized in the business of bringing buyers and sellers of stocks and securities together.

Most modern day trading, as opposed to the open-and-cry system of the past is now done via electronic exchanges where the buying and selling occurs through on-line real-time matching of orders placed by buyers and sellers.

There are many different ways for investing in the Stockmarket, including income or capital growth, technical analysis or charting. Better still there are strategies that do not require complicated charts. All you need is a ruler and pencil, and the right publication to select high-performing companies. Something a seven year-old can be taught to do. If you look well enough, you are sure to find a method that suits your personal needs and goals.

You can go for a hands-on or a hands-off approach that can take anything from an hour per week, through an hour per day to an hour per year. You can go for a highly risky strategy to a medium to low risk strategy. Consider investing for the long term instead of short term.

A lot of people are afraid to put their money in the Stockmarket because they are highly concerned about risk. What they forget is: Risk is a factor of life, and risk can be managed and highly reduced.

Most people tend to seek the advice of financial advisors without realising that financial advisors mostly earn commissions on recommending and selling specific investments. It goes without saying that they will be more interested in selling investments that will ultimately make them more money.

Hence, it is not the smartest move to let someone else invest your hard-earned money for you, especially when you realise that learning about investments is not exactly rocket science. Ask yourself this question: Who is most likely going to look after your money better, you or someone else?

Further more, most of these advisors are not wealthy individuals themselves neither are they successful investors. So it is very much the case of 'the blind leading the blind'. In many cases, the only difference between you and the financial advisor is just a licence to advise on investments, sadly without the need to be investors themselves. As useful as the licence might be to financial advisors, you will be unlikely to find a millionaire investor with a licence, or a financially independent financial advisor.

What you want is to learn about investing from people who have a success record of investments themselves. People who can teach you from their personal real life experiences! People who can teach YOU to fish, and not fish for you. Theory is great, but what will make you rich is real-life application.

Learning to invest in the Stockmarket might well be the smartest move you ever made in terms of managing your money better to ensure that it is working for you. Working harder will not make you wealthy! Making more money will not make you wealthy! Investing your surplus money is the key to wealth.

The Stockmarket & The Six Blind Men

The Stockmarket reminds us of the story of 'The Six Blind Men And The Elephant' about how our perceptions can lead to totally different realities.

Once upon a time, there were six blind men who wanted to learn what an elephant looked like, since none had ever seen one before. So they took a trip to the forest to discover what an elephant really was like.

The first blind man approached the elephant from its firm flat broadside and bumped his head. He declared to his friends that, "The elephant is just like a wall,"

The second blind man reached out and touched one of the elephant's tusks and said, "No, this is round and smooth and sharp - the elephant is like a spear."

Intrigued, the third blind man stepped up to the elephant and touched its trunk. "Well, I can't agree with either of you; I feel a squirming writhing thing - surely the elephant is just like a snake."

The fourth blind man was of course by now quite puzzled. So he reached out, and hugged the elephant's leg. "You are all talking complete nonsense," he said, "because clearly the elephant is just like a tree."

Utterly confused, the fifth blind man stepped forward and caught one of the elephant's ears. "You must all be mad - an elephant is exactly like a fan."

The sixth man approached, and, holding the elephant's tail, disagreed. "It's nothing like any of you say - the elephant is just like a rope."

Thus the six blind men all perceived one aspect of the elephant and were each right in their own way, but none of them knew what the whole elephant really looked like.

The moral: Depending on one's perspective reality may be experienced and viewed differently.

The Stockmarket often poses itself like the elephant to many investors. Like the six blind men and the elephant there are differing predictions of what the market will do, and how to invest in it, whether you do or not at all.

But the market seems willing to accommodate the wide variety of even opposing beliefs. Despite the wide array of opinions on the market, we still find investors with contrasting opinions making money on the market at the same time while others make losses.

There's one thing all investors have in common, and the only reason why anyone might invest in the market. That is to make money.

So the most important thing for you is to ensure that your perspective of the market is serving you.

If it is not, then look for the perspective that will bring you the positive outcomes you want. The best and fastest way to do this is to find someone who has got it right and model what they have done. Find out what their perspective is, what their method and strategies are and follow this until you achieve success.