Young Investing, Is now the time?

brosonina · #1 (**permalink**) 10-13-2008, 02:04 AM

Hey all,

I don't have much knowledge of stocks or trading and so forth. But I am a college student and have been keeping up with economy and financial crisis that this nation is in. Obviously everyone knows that the market is down now and that is why I am asking if now is the time to invest. I have about $800 left over from scholarships and loans and considered putting it into the stock market now that it is at a very low. I have heard that a good time to buy stock in something is when it is low and you earn back what you put in as time goes on. Well I am young and looking to invest the money that I do have and hopefully make some money to pay off my loans after college. Is now the time to invest? Any helpful information would be great. Keep in mind that I dont know much about stock or trading.

Thanks Everyone,

B.

Grassroots · #2 (**permalink**) 10-15-2008, 05:59 PM

Well now certainly is a better time than last year this time, but it is unclear whether the "bottom" has been hit or not, at least to me. I know we had a really big rally, assuming that is based off the G7 conference and the "confidence" people gained from that meeting, but if the media stays the way it is and we keep hearing the r word or d word, then your going to see quite a bit of volatility. I've learned there are no official rights and wrongs trading, because nothing is certain. I think at your age, I would try a money market fund in the time being, and learn about the market and then go from there. Broad based index funds give you diversification, one that has worked well for me (mutual fund) is NEWFX. Of course do your own research, but everything in this market is heading down. If we are headed for a recession, keep in mind things people NEED, like utilities, foods, ect. I love dividend funds, especially in this market. I'm buying a ton of shares, and yes my portfolio has lost 20%, but trying to stay positive and knowing that each month I'm buying reinvesting my dividends and buying cheaper shares doesn't bother me as much as knowing that it's down.

bankbars · #3 (**permalink**) 10-18-2008, 05:54 AM

hi there,
i too agree with what grassroot has said, you need to get the Market knowledge and then try to invest.or if you want to make investment anyway then best way is to play the stock for long term that is for one year or more, because that amount will anyhow keep on growing.
so i think that would be the best way to grow your money.

Any queries or suggestion is most welcome.

Thanking you.

steve80 · #4 (**permalink**) 11-11-2008, 12:41 PM

You are thinking ahead than most people of your age. Someone your age that start investing now will be in its path to retirement sooner that his peers. Think about the stock market and investing as a retirement plan, not get rich now plan. It is a long term plan that involves strategy, knowledge and some guidance. But the sooner you start the better you will be in 5 or 10 years.