Financial Channel

Hello there,

I don't know if there is already a thread started on this topic but if there isn't, perhaps this can be a thread.

Basically, let this be a thread for Q and A's relating to the Canadian Stock Market for beginners.

No stock tips.

I have a couple of questions to start off with.

1. Is there a website or a book that you would recommend that teaches to analyze financial statements?

2. Is there a website that lists all terminologies and jargon related to the stock market?

I would recommend not purchasing stocks if you are newbie investor.
In addition, I would only recommend stocks for your "experimental" portion of your portfolio. The rest of your portfolio should be created by an educated planner/advisor who has access to the latest/up to date information on all investment products. In addition, they will tailor the products/recommendations specific to your situation. Sometimes even we don't realize our situation.

Here is a good website. Great information.
http://www.investopedia.com/

Hey thanks for the site.

I'm not looking to start investing tomorrow, next month or even this year. But I wouldn't mind having the knowledge to start educating myself, whether through readings or with the help of advisors.

how much money should I start off with if I want to invest in stocks?

Any amount if you like. Just picking a stock or two. Although, this is what the inexperienced investor will do.

If you want to build a diverse portfolio and expose yourself to minimal risk, I would say $100,000.

can i double up small amounts like 5 or 10g but hitting the penny shares?

Yes. But, this will be incredibly risky as there is a reason they are penny stocks. Essentially, you will not be picking credible stocks. They will be as risky as purchasing an early 90s Hyundai model. In other words, you are asking for trouble.

Good luck..

Or you can hit it lucky. My Playland manager invested around $10k in a penny stock and came out a multi-millionaire.

pennies can make you a lot of money fast BUT they tend to be illiquid sometimes.

don't I know it! I too have heard of someone who invested $2, picked a series of random numbers, and came out with millions in a week.