Beginner Advice

[CSCSW]

Contemplating getting into the stock market, but I have some questions/concerns.

Without having a huge bankroll to back myself what I would essentially be doing is buying 1 dividend share now. Maybe buying another in two week, another in 2 months, etc.. is that worth it to start?

Would you diversify even at that starting point? So maybe have a few shares of this and a few of that? Or would you try to put all your eggs in one basket until you had a bigger money pool?


Any advice is welcome and appreciated!

[TheJoeyBucketz]

All in one basket vs diversification is a personal decision based on your risk tolerance. Individual stocks are usually going to experience wider swings (volatility) than a diversified portfolio. If you choose diversification look into an etf like vanguards VTI. All the diversification you could want in one fund with one ticket charge.

Edited because my spellcheck is wee Todd did.

[HawgWild]

I'm not the best advisor in this forum, Lord knows I've picked some duds over the years but let me suggest CNP, a public utility based in Houston. It currently paying a 4.25% dividend based on today's selling price. Utilities, often referred to as "widows and orphan" stocks, are not flashy but they're pretty dependable. There are a bunch of others out there but this is one I personally own and have for almost 30 years. Sign up for their DRIP and set back and watch.

And, FWIW, I bought my first shares of stock on Tuesday, October 20, 1987; Worthen Bank. So, don't be afraid to jump in. Just don't get too crazy.

[Boardon Hamsay]

I follow the Jim Cramer rule here. Put your first $10k in a low fee S&P500 Index fund (FUSEX, FUSVX, SPY, etc.). Reinvest the quarterly dividend and this is a solid, diversified way to start.

[tasteslikechicken]

I follow the Jim Cramer rule here. Put your first $10k in a low fee S&P500 Index fund (FUSEX, FUSVX, SPY, etc.). Reinvest the quarterly dividend and this is a solid, diversified way to start.

This is my advice too. Warren Buffet agrees also.

[TheJoeyBucketz]

Meh, Fusex and the other are just S&p 500 funds. VTI gives you access to all of those companies plus a small allocation to small caps, for less that half the expense ratio.

Splitting hairs, here. All are solid picks for just starting out.

[onebadrubi]

Vti if with vanguard.  Low fees.


Itot if at fidelity and it's commish free. 

Once you hit 10k or so maybe look for a little international like ixus and then maybe a little bond fund to diversify. 

[99toLife]

I follow the Jim Cramer rule here. Put your first $10k in a low fee S&P500 Index fund (FUSEX, FUSVX, SPY, etc.). Reinvest the quarterly dividend and this is a solid, diversified way to start.

This is a good way to get your feet wet. After you build up some capital and start to understand the different products available you may want to branch out a little in your portfolio.

[HiggiePiggy]

Vti if with vanguard.  Low fees.


Itot if at fidelity and it's commish free. 

Once you hit 10k or so maybe look for a little international like ixus and then maybe a little bond fund to diversify. 

You can get VTI on robinhood.