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How much do I need to invest properly...?

Hi, I am 21 and a student. I want to invest in stocks in the future. Maybe 30. People say diversify between 5 or 6 industry and keep it there for long time. One stock shares should not take 20% of my portfolio. Well, then how much is expected in each basket? like 10,000 dollars worth of shares in each stock? How long am I suppose to keep it? like 5 years? Do some people keep it for like 15 or 20 years? or even longer? Would it be advisable to use the dividend to buy more shares? also how do I know if I am getting the divident anyway?

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  • Todd G
    Lv 4
    1 decade ago
    Favorite Answer

    Diversification is important and that's why it is also important to not own too much of one stock.

    People say to keep stocks for a long time because time averages out the price volatility they experience. Really, it doesn't matter how long you keep them as long as they make you money in the end.

    There are two things to consider when thinking about how much money to invest in each stock. First, if the share price is high (say $150 per share), then you'll have rounding problem when trying to reach your target (say because $150 isn't a multiple of your $500 target). Second, you don't want to rack up too many trading fees just by filling up and maintaining your portfolio. If you have a few large chunks of stocks, that will require less trading than if you have several small chunks.

    Dividends are good have, but they're just cash. Invest them the same way you would do with any new cash you get.

    For beginners to stock investing, I usually recommend the ETF 'VT'. It's a single ETF stock that tracks the whole world's markets, all sectors, and has low expenses. It's run by Vanguard, a well-trusted mutual fund company.

    Always do your research before investing. Study both investing techniques as well as the individual assets where you plan to put your money.

    You may lose money, you may gain money, but you'll always be better off if understand what you're doing.

  • Anonymous
    5 years ago

    Despite their volatility, trading penny stocks can be extremely lucrative. Here are three ways that you can profit from investing in penny stocks https://tr.im/z1EXT

    The good news about penny stocks is that you can buy a good amount of shares without going broke. It’s thus easier to get a good stake in a company for less than you would pay for stock of a larger organization. To find a company that you feel confident investing in, make sure to do your research. Don’t just choose a company because you saw an article about it, or because your friend is investing in it.

  • 1 decade ago

    Stock market is a rigged casino .

    only thing of valus is gold silver in your posession. Find a local dealer buy silver little bit at a time. read forums on kitco.com

    Source(s): All I do is take these funny little rectangular pieces of paper or those electronic digits that appear on my computer screen that our zombie banks and governments call money and I turn them into silver and gold The medieval alchemists never even go close to that miracle! I am turning paper into gold, it's awesome! We should be thanking the collective boneheads who make this magic possible. And they even break their own laws to make it easier for us to do! What's amazing to me is: A few actually do it.... A few more think about doing it.... More talk about doing it, but aren't really convinced.... Some even complain about doing it.... but a lot think we're out of our freakin' minds and our wonderful government is going to make everything ok
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