Where/how to start?

[Cocoon]

Hello everybody,

I've finally managed to save $1000 and would like to buy some shares but I have no idea where and how to start. I'm hoping you all experienced people will help me to start somewhere.

Thanks in advance.
Cocoon

[Just a Guy]

Moneysense had an article a while back about where to invest... and then had various levels of money. Could be a good starting article.

Found it, September issue

1) high interst savings account
2) low cost balanced index fund
3) TD e-series fund

[KaeJS]

I think you should try and save some more money first.

$1,000 is usually the minimum requirement to trade, however, it isn't a lot of money at all.

I would suggest saving about $5,000 first. It will be a lot easier and less risky this way.

With $1,000, you are limited to what you can buy and how many shares you can buy. Also, if you spend the full $1,000, you will not be able to buy the stock at a lower price if it falls, which means you will be stuck with the price you got.

[Cocoon]

Thank you Just a Guy. I will look into that article.


KaeJS, thank you. I'm aware that $1000isn't much in fact it is nothing. I don't think I will get good profit from it but I though at least it is a start. Me saving $5000 is a looong way at the moment I just wanted to learn how and where to buy stocks. I'm a complete beginner I don't even know where to find stocks and how to buy them

I've just started reading forums like this and so far I like this one better.

Thank you for your responses.

Cocoon

[Toronto.gal]

Me saving $5000 is a looong way at the moment I just wanted to learn how and where to buy stocks. I'm a complete beginner I don't even know where to find stocks and how to buy them

I've just started reading forums like this and so far I like this one better.

In that case, you have ample time to learn & should not start investing in any stock until you have, at the very least, an understanding of what you are buying & how to evaluate the stock first.

You should read investment books [borrow from library] & then you'll understand articles/forums much better.

Start with "Investing for Canadians for Dummies" & "Stock Investing for Canadians for Dummies".
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Welcome to the forum!
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[Cal]

You came to the right place. This site is a great place to start.

If you bank w TD the e series funds are a good place to start. Or an index fund at your locat bank will give you an intro, you can follow its holdings to gain some more info. Also use the search function on here to read about the CanadianCouch potato portfolio, which is a good direction for beginners.

Enjoy.

[Soils4Peace]

At TD open a TFSA that allows mutual fund purchases.

Answer the risk tolerance questionnaire in a way that will indicate high risk tolerance. You won't need the money for at least 20 years. A 50% drop in the value of your fund wouldn't bother you at all. Otherwise they will give you grief if you ever sell your bond allocation and decide to go all equities.

Buy equal parts TDB900, TDB902, TDB909 and TDB911 and maintain those proportions till you have more and know more. They are Canadian TSX, US S&P500, Canadian bond and EAFE (Europe, Australasia and Far East) index funds respectively. After you read a lot and get some financial clout you can make some make some changes.

[Just a Guy]

I think the sept issue of money magazine (or the next month) also had a similar article. It's an American magazine though, so you have to factor that into the advice, some of it doesn't work in Canada.