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Have you ever wanted to venture into the stock market, but thought that it was only for people who have tons of money? If so — continue to read on and you will find some tips on how you can start investing with only $100 dollars.

MSN has a guide that explains how a average person can venture into the stock market with only $100 dollars. Let’s begin with the common mistakes of the stock market.

• Market Timing
• Buying High, Selling Low
• Failure to Diversify

All thee of the above have major roles in determining your success in the stock market. If you buy at the wrong time — you could end up waisting or losing money. You should buy low and sell high — not the other way around. If you put all of your money into one stock, you are setting yourself up for problems in the future. By spreading your money around you can ensure that if one stock takes a dive, your funds will not.

But wait - What if I only have $100 dollars, how can I invent in more than one stock? The answer to this question is simple! When you are starting out investing in the stock market buy stocks like the S&P 500 or the Wilshire 5000. With these, you own small numbers in many stocks. This ensures that you are well diversified. Once you start making more money — you can begin to invest in single companies.

This is in no way a complete guide to investing in the stock market — it is designed to get you interested in investing and your future. If you want to read more, this article was based off of Richard Jenkin’s article, Start Investing with Just $100.

Justin

Tags: Investing, Money, Stock Market

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