How do invest in small stocks?

Efren Clankscales: You are too young to deal in shares. If you are interested enough in investing then read all you can about it. Reading about companies in the Financial Times and accessing them on the internet will give you loads of knowledge of how they operate. Read about dividend bearing shares and growth shares. They all require different strategy. It is a very rewarding way of earning a living if you get it right. But remember always:- shares can go down as well as up and only invest as much as you can afford to lose....Show more

Scot Rotruck: Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself. Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start y! our education by reading “Investing or Dummies” by Eric Tyson.To continue your education select some of the following Beating the Street by Peter LynchBulls Make Money, Bears Make Money, Pigs Get Slaughtered, by GalleaFrom Riches to Rags, by I.C. FreeleyMillionaire Traders, Lein & SchlosbergHow to Make Money in Stocks” by William O’Neil24 Essential Lessons for Investment Success by William O’NeilThe Intelligent Investor, by Benjamin GrahamCommon Stocks, Uncommon Profits, by Philip A. FisherOne Up on Wall Street by Peter LynchStocks for the Long Run, by Jeremy SiegelUncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.What Works on Wall Street by James O'ShaunesseyYou Can Be a Stock Market Genius by Joel GreenblattYour Money and Your Brain by Jason ZweigWebsites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks - http://w! ww.1source4stocks.com/info/stock-analyst-o... or Smart Money h! ttp://www.smartmoney.com/Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fromad=1 Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it. And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/ and/or http://www.tradingsimulation.com/ You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.Good luck on journey, study hard and you’ll invest well....Show more

Bryan Avinger: When you say small stocks are you thinki! ng penny stocks?Try to stay away from penny stocks - those stocks are that cheap for a reason.If you are just starting out as an investor I recommend learning about mutual funds and exchange traded funds. With a small investment you can own several large stocks all at once. A mutual fund will invest in multiple stocks and pool the money from many different investors to make that purchase. Your money is part of the pool.This will help to reduce your risk for loss because your money is spread out over several stocks instead of just one (diversify, diversify, diversify.) Consider funds that pay dividends and that invest in consumer staples (toilet paper, shampoo, cereal) the things that still do well even when the economy does bad.Try reading books they might be a little more reliable than random stuff you read on the internet. If you are looking at stuff on the internet be sure it is from a reliable source. Try reading books by the Motley Fool brothers and Jim Cramer. ! You can watch Cramer's TV show weekdays on CNBC. He tries to teach abo! ut investing in stocks while making it fun at the same time....Show more

Hal Rouse: Reading books is the best way to start. Eventually you'll find some Webinars that are also helpful (it's important that you'll be able to weed out the ones that are self serving). The longer your expected holding period... the less you have to read to learn the basics. Short term trading can take 3-5 years to learn (most fail in less than a year) and is the hardest to learn.Wanting to invest in "small stocks" is a typical novice big mistake. After reading some books you'll understand why. If you're in the USA you won't be able to open an account on your own until you're 18 years of age.Good luck!...Show more