New stocks? Um. no. There are a few things to consider before investing. First is suitability, what it means is, what kind of risk can you tolerate? By risk i mean loss. You start by having an investment objective, its important. Do you want to go with a professional, or do it on your own? Generally if your playing with five or six figures i'd say go with a broker. Under that their fees will cut into your profits. That's what we're all after right? capital gains, profits, we're greedy little capitalist pigs you and i =D
Also be aware of tax implications for capital gains (and losses)! (knowings things like that is why you shouldn't be republican if your not rich) (I'm kidding with the political joke! lol). As for your question. "if its the right time to invest?" OF COURSE IT IS! It's the best time! Capitulation baby! Do you want to invest in the market when the markets are soaring? Derivatives(stocks, bonds ect) prices are high? No! You want to buy them at discount when the markets are taking a beating.You can even make money when the markets are plummeting, profiting on the misery of others...such an evil man i am. But those strategies are advanced i won't even mention them, they involve the potential for unlimited loss!
Dates to remember, May 1st, November 1st. There is too much information to even try to educate about the financial biz. If shopping for an advisor(broker) remember no one broker has the market figured out, its impossible. Just remember that no matter what they tell you.
A lot of things can affect the market (election year for example) remember that don't let volatility drive you crazy. Margin... (wall street will give you enough rope to hang yourself). I could explain it but it would take too long, just look up Margin, Margin calls ect. Remember its not hard its just a lot of info.
If your a newbie at investing a good first step is an IRA, shoo go to your bank and open one =D
It's a lot what i just typed to absorb, because thoughts are everywhere, I'm at work eh =p
It may seem challenging and it is, don't be discouraged by it. Because no matter what the precautions you take you can still lose money, it's why suitability is so important. Try to learn about things like interest rates, PE ratios (price earning) ect. You can toss a dart at a board and pick a winner, or you can do your home-work and achieve the vaunted title (sophisticated investor...those usually are billionaires). A good tip is to follow institutional money, what they are investing in ect.
Penny stocks (stocks under $5) sound great but they have alot of risk. The name is deceptive too, makes you think they are the poor mans stocks. They aren't they are volitile and for people that can take business man's risk...or woman =D
We live in a capitalist system, richest country on this planet. 13 trillion dollars flows just a few city blocks from here (in NY) i think everyone should invest, smartly. Pace yourself start small watch it grow =)
Side note, before investing i would pay off all debts first if you have a mortgage adding an extra mortgage payment per year can cut both the length of the loan and the interest! Like 90% of the wealthy are lucky sperm, but the wealthiest people did it in the market not inheritances, have fun on the big board!
Oh don't mind the grammar i'm typing on the move lol I don't mean to sound condecending if it came off like that..I'm a new yorker we're mean =p
