Best stocks for beginners with little money?
Today the market was 50–50. Nifty 50 achieved new all time high but we saw some correction in different sectors like psu, today the major correction was came from PSU stocks,that is because of doubtful budget, yes many analysts predicts for good but in case the budget will come different on that market will correct more, therefore in PSU sector we are seeing profit booking.
Today realty sector was the top gainer, IT sector performance was average. Anyway it is the today’s view on market. Now come to the topic. Normally I am not recommending any stocks because I am an investor just like you. I am still learning and I am not the expert. Ok
Look on my experience in coming days means after budget Indian market may correct. I am not sure but I predict that market will come down. Those investors are already build there positions they should minimise there positions, and keep money in there hand, so that if major correction will come they can do averaging.
Best stocks for beginners with little money?
For beginners no need to hurry better wait for few days. Here I will mention few stock names keep them in your watchlist, and if correction will come just add them in your portfolio.
1- Bharat electronics
2- Ircon international
3- Zomato
4- Nlc india
5- cyient
6- Sbi
7- Axis Bank
8- mankind Pharma
9- Havells
10- Titan
11- larsen & turbo
12- chola finance
13- sbi life
14- HDFC amc
15- motherson sumi
16- ion exchange
17- concor
18- ambuja cement
19- Stanley lifestyle
20- Trent
21- interglobe aviation
22- chola finance
23- astral
24- adani ports
25- kpi green
26- Nam india
27- archean chemicals
28- Mahindra Mahindra
29- TVs motors
30- net web technology
Best stocks for beginners with little money? These 30 stocks keep in your watchlist if correction will come, try to take positions in these stocks for long term.
Best stocks for beginners with little money?
Beginners and advanced investors will both lose money if they do not research the stocks they want to invest in. Beginners must read widely and invest in just a few safe well well-researched stocks before trying to act like experts. A beginners should leave day trading alone, even seasoned investors can lose a load of money trying to trade rapidly in and out of the markets. Most people including beginners will lose money in the short term.
Investing with little money as a beginner can be a smart way to start building wealth. Here are some options to consider:
- Exchange-Traded Funds (ETFs): These funds allow you to invest in a diverse range of stocks, spreading out your risk. Look for low-cost index ETFs that track major indices like the S&P 500.
- Dividend Stocks: Companies that pay dividends can provide a steady income stream. Look for well-established companies with a history of consistent dividend payments.
- Fractional Shares: Many brokerages offer the option to buy fractional shares, allowing you to invest in expensive stocks like Amazon or Google without needing to buy a full share.
- Robo-Advisors: These platforms automatically invest your money based on your risk tolerance and goals, often with low fees.
- Blue-Chip Stocks: Consider investing in well-known, financially stable companies that have a long history of performance.
- Technology Stocks: Many tech companies have shown significant growth potential. Research companies with strong fundamentals.
- Invest in What You Know: Consider companies in industries or sectors you understand, which can help you make informed decisions.
- Best stocks for beginners with little money?
Always remember to do your research and consider starting with a diversified approach to manage risk effectively!
How do I learn how to trade stocks and become a bull, particularly in India? I’ve never traded before and I have no experience in trading.
Best stocks for beginners with little money? Before answering your question, let me clarify that even I was a newbee stock trader 3 years back and now after cycles of profits and losses in the share market, I have come to the point where I can trade and make profits myself.
- First of all get your Demat account created from low brokerage firm like Ventura, Zerodha, etc. Don’t get carried away with the free 3-in-1 account services which states that your Demat account would be free. It actually isn’t and charge you heavily with the brokerage amount.
- Before actually making a transaction or your first trade, trade a stock on paper and list out few stocks (say 10) which are included in Nifty-50. Observe these stocks for a week or two and get familiar with their movements. Few may be range bound, few may be very volatile and few might move gradually without much volatility. Trade them on paper (write down your buy price) and sell them whenever the price comes to a point where you can book profits. Easy….? Right? But the probability of the price coming down your buy price is also equal. So, in this case, you need to be practical rather than being emotional and book loss smartly. This will help you create your target price and stoploss. (Target price: The price at which you can sell your existing stocks and gain some profit. Typically, for short term of around 2 week to 2 months you can set this anywhere between 3%-20% depending on the stock and your risk apetite. Stoploss: As per the name, this is a number or the price which stops your further loss by booking a fixed loss in case the price falls from the point you buy it. This is typically set anywhere between 0.5% to 2% less from your buying price.)
- Stock market is not just a luck game though. Get some basic knowledge on technical charts and technical indicators like RSI, MACD, CCI, moving averages, etc. This will help you entering and exiting trades smartly. You can search videos on these on youtube and get familiar with these terms. You can follow moneycontol website for tracking stocks and their charts with technical indicators. Very importantly, never trade without seeing the history or graph of any stock for past 5 days, 1 month, 3 months, 6 months, 1 year, 2 years and 5 years. Seeing this chart and prices over this periods is MUST. It will help you judge about your trade yourself.
- After getting familiar with the trades on paper, you will start feeling confident once you start making profits. At such stage(normally 2 to 4 weeks), you can start the actual trading though your demat account.
- Be practical rather than being emotional with your money. Its okay to book a loss of Rs 300 rather than watching it getting bigger to Rs 1000 to 3000 day by day. You need to learn/accept that every single trade cannot be profitable. But with proper technique and stoploss implementation, even your one profitable trade out of four trades can sum up for your small losses and still give you profits.
- Learn about support and resistance levels. Always look at these levels before entering any stock. Support level is the price range of a stock which allows the falling stock to form a base, settle down and then move it upwards. Here, the stock is in the downtrend and once finds support, tend it to reverse and start moving upwards. You shall take this opportunity to buy and enter at such point. However, if the stock breaks the support you need to avoid entering it and wait till it stops falling and makes a significant upmove. Resistance: This is the price range where the stock in uptrend tends to fall after reaching this level. You need to sell your stocks here and book profits. However, if the stock overcomes and crosses the resistance level here with greater volumes, the uptrend of the stock becomes more stronger and you need to hold on your stocks for little more profits unless it finds it another resistance level.
- Trade with patience and do not listen to any predictions given by the brokers blindly. Avoid intraday trading and instead go for short term (1 month to 6 months) and long term trading/investing (>1 year).
- Do not go overconfident after making big profits. Instead, focus on improving it more and more. Likewise, do not get frustrated after making huge losses and instead try to minimize the losses by applying a strict stoplosses to your trades.
- Avoid trading everyday and on the occasion of any uncertain big events for e.g. results day, federal meeting, RBI announcements, elections, etc. This events are likely to drive markets significantly on such days.
- Keep learning and analyse your trades by tracking all the trades in a excel sheet (This excel sheet will simply contain your buy date, sold date, buy price, sell price, profit/loss, etc). It will help you analyse your trades and motivate you to continue your trading and learn from your own mistakes.
- Best stocks for beginners with little money?
This is all you can learn yourself at the beginners level. Hope it helps you. All the best and Happy trading!!
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I’m 19 years old and I want to educate myself about trading and investing.
I’ve heard of Forex, binary options, stocks and penny stocks. What are some good online courses, and where should I start?
The majority of online courses and the majority of these answers are unreliable and mostly full of bullshit. Don’t take any of them to heart because they all basically say the same thing and they all basically accomplish nothing in your intellectual journey to learn the stock market.
Think about it. When it comes to knowledge regarding how to make money, would anybody really tell you the secret if they knew it? Why? It serves them no purpose.
Finance and investing is unique because the dissemination of knowledge does not benefit the individual. And when fear and greed come into play, there is even less reason to disseminate that knowledge. If anything, if you look in many cases of hedge funds and investment entities, there are rampant cases of insider trading and fraud. The misappropriation and false advertising of knowledge is actually more beneficial than giving away any real wisdom.
In sports, there is no way someone like Kobe Bryant can fake shooting a 3-pointer. There is no way for Armstrong to fake biking across Paris. But in finance and investing, the top players in the industry can easily fake their results. In fact, several top traders in SAC Capital were prosecuted for insider trading. In fact, the former Chairman of the NASDAQ was found guilty of a Ponzi scheme. Do you really want to trust an industry capable of cheating at that high of a level?
Tom Sosnoff and TastyTrade interviewed someone literally named “Karen the Supertrader”. She literally sat there and spoke for an hour about a couple of trading concepts that she uses. She talks about her trading wisdom, her trading prowess, and methods she uses to keep a calm head. Anybody listening to these interviews were probably taking notes and hoped to incorporate her lessons into their trading.
She was then convicted of fraud.
You will encounter many so-called stock market gurus that claim to be able to teach you how to make money in the stock market. If you pay any real attention to what they teach, it’s mostly bullshit. They will teach you some things about technical analysis, position sizing, and perhaps fundamental ratios. And they will talk about entry and exiting. They will mention their success in options, forex, and note their secret sauce will be in CAPM and Bollinger Bands.
The majority of these writers will then link you to a blog and newsletter and encourage you to follow them on Facebook and Twitter. They usually have a book with their face on the cover.
You want to know a secret? These people aren’t really traders. If they have any success, it likely will be no more impressive than someone earning a regular salary working for a stable company that comes with health and insurance benefits.
The reason why they’re so eager on selling their trading knowledge is because the selling of that knowledge is immensely easier than actual trading. And it’s also more profitable. If anything, the rationale behind selling trading knowledge is no more different than the rationale behind successful trading. There’s always a winner and a loser, and the guy who spends $49.99 on a trading package is the sucker.
If you want to learn about the stock market and investing, you have to understand that this is an industry. There is no easy path to fully understand the stock market. The stock market, in its most pure iteration, are numbers and values dictated by the buying & selling activity of every participant. While the industry today hires many Phd’s and mathematicians to come up with complex theoretical models to “predict” stock prices, it is in essence trying to predict human behavior. The stock market is really a manifestation of human social behavior, and shares in its properties of inherent unpredictable behavior.
To be even more accurate, the majority of successful stock market investors don’t even try to predict price movements anymore. The majority of successful hedge funds now find ways to game the overall system rather than playing the actual game. For example, high frequency traders will try to jump their orders in front of larger institutional orders to make a pretty penny before anyone knows what’s going on.
Best stocks for beginners with little money?
Ed Thorp, one of the founding fathers of quantitative-based approaches to the stock market, spoke openly in Market Wizards that his main strategy was to use his mathematical prowess to look for mispricings within options instruments. Again, nothing to do with the actual predicting of stock prices.
If you want to learn the stock market, as someone who’s trying to do the same, my best advice to you is to look for books and manuscripts that no one else has bothered to read or learn.
Think about it. What do people read? They read blogs. They read books titled “How to get rich in 24 days!”. And They pick up books with pictures of attractive authors on the cover. they read Wall Street Journal articles and maybe a feature on the Economist if they have time. They’ll pay a subscription fee to CNBC and turn on the television. They’ll listen to the radio while they’re commuting to work.
What don’t they read? They avoid thick textbooks with boring titles like “Predictive Modeling of Futures Volatility”. They avoid reading board meeting minutes and they avoid learning math. And they avoid calling up investor relations representatives and speaking earnestly on the phone. They avoid getting on their feet to interview company executives (See: Jamie Mai). They avoid getting a job interview, ranking high in class, working hard, thinking hard, and most importantly, see the stock market as a vehicle for riches rather than an intellectual pursuit.
And they read flashy headlines saying “Day Trader makes 34 million in single trade!”.
They avoid reading the body of the article and admitting to themselves that the day trader in question shares no similarity to you, hypothetical 19-year-old who works summer jobs to pay for college. So how exactly are you going to replicate his feat?
Nobody has the answers. Nobody truly knows the stock market. It’s all smoke and mirrors. Eugene Fama can spend his whole life developing the Efficient Market Hypothesis and that all expert investors are just expert coin flippers. But then, how do you explain the famous Oracle, Warren Buffett? Is Buffett truly just picking undervalued companies with a margin of safety as recommended by Benjamin Graham?
Or is something else going on?
The funny thing is, if you (OP) ever figure out these kinds of answers, you would never tell anybody.
So trust nobody. Learn for yourself. Read critically and think rationally.
Everything being said, I shamelessly recommend the following:
- Joel Greenblatt’s “You can be a stock market genius”.
- Jamie Mai’s & Ed Thorp’s portion in Market Wizards.
- Anything you can read about Michael Burry.
- Best stocks for beginners with little money?
A final note:
People that experience humongous success in investing already experienced a degree of success before their even-larger success. Steven Cohen saved up 20 million dollars as a successful trader before starting SAC capital. Cliff Asness, founder of AQR Capital, was a PhD student working under the famous Eugene Fama at UChicago. Mark Zuckerberg, teenage extraordinaire, was offered a large sum of money by Yahoo for an application he co-wrote with some friends in high school. He also attended Harvard.
My point is, as much as the headlines and gurus would want you to believe, there is no get-rich-quick method in this world other than drug dealing, and even that is hard. If you want to be financially successful, there really is no other way to accomplish this feat under than hard, ambitious work.
So as a 19 year old looking to make money in the stock market, I recommend getting into college, enrolling into top statistics/mathematical courses, earn top grades, receive a CFA designation, perhaps attend a financial engineering graduate program with strong career placement options. You’ll end up working for either a large bank or investor fund. Best case scenario, you’ll at least earn a million dollars before 30.
Sound hard, boring, and lots of work?
Well so is the stock market.
Conclusion
Best stocks for beginners with little money? Buy shares in Canadian banks and put them in a dividend reinvestment plan. Forget you own them. When you need money, in 5, 10, 20 years? You’ll be pleasantly surprised by the return.
Don’t put your money in the bank. Buy the bank. Leave it alone. Just quietly accumulate capital.
If you want a savings type investment plan? Buy a few shares every month. You can do this directly with the banks, or you can do it with a brokerage account.
I happen to like Royal Bank of Canada (RY), or Canadian Imperial Bank of Commerce (CM). They pay 3.5% and 4.5% dividends. You want to own them long term. A time measured in years. The best time to buy is when you have money to invest.
Canadian Bank stocks are boring as owl poop. While your day trader buddies are trading their money away? You’ll be quietly growing and compounding those dividends. You’ll win the 10 year contest every time.
Any good solid blue chip stocks that pay dividends that increase every year will do the trick. I like Canadian banks because they are reliable and well known. Not big “glam” stocks. They never “hit it out of the park”. They just quietly make money, and keep making money.
When you have a year’s salary in Canadian Bank Stock and other big blue chips, then you can spend some time developing stock picking skills and look for excitement – for about 10–20% – of your investments.
Not what you wanted to hear, I’m sure, but best advice.
Best stocks for beginners with little money?