new to stocks!

[master96]

Greetings,

I'm thinking of investing in stocks. NYSE and Daw Jones for example. I don't want to have profit out of selling and buying stocks. Rather, I'm interested in buying stocks in stable corporation(s). And share its profit.

I live in Jordan. I have a bank account. And I have a Visa card. How can I start investing? How can I know how much profit I get from one stock? Do I divide the total net profit on the sum of stocks of the company? Or there are some other calculations?

Thanks,
Master96,

[Fredledingue]

As I understand you are not looking to trading stocks (buying-selling-buying-selling...) but rather for a stable investment with a regular dividend.

The best way is to go to a large, renown bank in the biggest town of your country and tell them that you want to invest your money this way.
They will offer you to invest in some funds. Tell them you want a dividend and bond fund of american companies.
Ask from several banks and review carefully the conditions, fees and risks.
Go preferably to international banks such as CityGroup.

A good fund should give you a cushy 10% to 25% return per year while preserving your capital. Beware of those boasting 50%, 100% or even crazier numbers. These are often traps.

If you realy want to buy specific stocks that you choose yourself, you still can through the brokerage service of those banks or through a internet broker.
That's riskier. Companies don't share their profits with shareholders: Share go up or down following good or bad news. And that's not obvious to predict or even understand.
It's only undirectly linked to profit. For example a company can make big profit, yet the shares fall because these profits are slightly lower than last quarter.
When they give a dividend it's often a tiny portion of what you would want to earn from your investment. As a conclusion investing in stocks means inevitably taking a profit out of trading them.


Good luck.

[master96]

Originally Posted by Fredledingue

A good fund should give you a cushy 10% to 25% return per year while preserving your capital.

Companies don't share their profits with shareholders.....

As a conclusion investing in stocks means inevitably taking a profit out of trading them.

Thank you so much for your reply.

I have a question! How does the bank get profit out of this? And gives me the 10% to 25% return? Does the bank take profit out of trading stocks?
Then gives me my return?

I'll see several banks as soon as I can. Thank you again, and good luck to you too.

[jessicaroy]

What about investing in stocks of a company which is based in some other country? If I'd to say invest in stocks in China, how to do that?

[rhinodude47]

Originally Posted by jessicaroy

What about investing in stocks of a company which is based in some other country? If I'd to say invest in stocks in China, how to do that?

Blain talked about this before, and it is through the use of an exchange traded fund, or ETF as they are called. Lemme find the post....

here it is,

http://www.stocktradingtogo.com/2007...er-80-in-2007/

Basically you would want to invest in FXI which is the ticker symbol. To learn more about ETFs, Blain also covered that topic here,

http://www.stocktradingtogo.com/2007...lio-with-etfs/

Hope that helps