If you have to ask this question then it's stupid. That means if you are going to mess with stocks you'd better know what you're doing. The stock market is a VERY dangerous place. If you don't really know what you are doing it's just gambling.
If you do decide to get in the market, then start with a small amount of money while you learn. If you lose money ( which you will ), consider it the cost of education. If you don't lose any money, it either means you got lucky, or you're not diversified.
So you got a stock worth 6.24. You have a starting point. Research everything you can about that stock. Keep in mind that it might be a pure sales gimmick. They might have picked a stock that they know will go up ( maybe because they manipulate it ). Go to EDGAR and research the stock. Understand what you are looking at.
NEVER buy a stock just because someone said it was good, unless maybe you have very good reason to believe they know what they are talking about. You should understand yourself why you think it's good.
Even the very best stock pickers lose money. If they can make a profit in 70% of them they are doing good.
Also, $50 isn't enough to do anything with stocks. Even $5000 is barely enough to do anything.
Consider mutual funds as a way to invest in stocks. Let the pros manage it. The drastically decreased risk is worth the small management fee they take. With some funds they will take less than 1% with no other fees.
Smart if you know what you’re doing, dumb if not. You have to have some kind of strategy based on statistics and an understand of the psychology of the market, otherwise you’re just guessing or making emotional decisions.
Starting off with a small amount of money that you can afford to lose just to figure it out is ok, but unless you’re putting in bigger sums later I’d say that you’re wasting your time.
Personally as others have mentioned I prefer trading crypto. It’s a lot more risky but if you know what you’re doing with that you can make a lot more money, sometimes multiply it if you choose the right coin. As in you can turn a small sum of money into a much bigger sum. I’ve only been trading crypto for 6 months and I tripled my initial investment.
If you go the crypto route wait for a bit, personally I’m not buying anything, I’m shorting at the moment (don’t try it as a newbie). We’re in a range right now, unsure whether we go up or down. I think that if bitcoin hits 55000 we go up (I’ll buy at that point because it mostly likely to go higher) and if we go lower we reach around 40000 (I’ll buy at that point because we most likely don’t go any lower). I’m not buying in between those levels. I say that because almost every other cryptocurrency is affected by the price of bitcoin.
Well if you do your homework, study the markets, and invest wisely it can be a smart thing to do although never invest more than you can afford to lose. There are various other investment options such as government bonds which offer minimal but guaranteed returns and crypto which can offer high returns but can go down like the Titanic without any warning.
I have a few shares in well known tech companies and they have done me well.
A none living thing cannot be stupid; only the living thing that uses it can be stupid... Stupid.
Opinion
21Opinion
It is difficult for an individual to make money on individual stocks even if they know the markets well. It's a big money game, you have to have a lot invested before you see gains. It also Has a lot to do with your time. If you are working a regular job and doing your daily routines you can't be by a computer all the time to buy sell and do all the research.
This is where Retirement Accounts and Mutual funds come in. They are investments in stocks and are suppose to provide those services for a small fee. Retirement accounts are deducted from your paycheck since it has to be earned income. This is why I prefer mutual funds. Deducting from my paycheck is just not the way I can successfully save.
I wouldn't go with Robinhood even if you do decide to start. They don't have anyway of listing a beneficiary to the account last I checked.
If you want to play around and see what it's all about before you jump in there are many fantasy stock trading apps. You can win and lose big without hurting yourself financially in real life.
Investing in stocks or crypto is a good idea, but it also depends on the stock/crypto. The market goes up over time, but there are losers as well. Better than Robinhood would be to set up a Wealthfront or Betterment account and let them decide which stocks to buy and sell after you set your risk tolerance.
Here are some smarter stocks to invest in: Apple, Tesla, Blackrock
Some smart crypto to invest in: Bitcoin, Ethereum
I don't advise investing in Dogecoin or many other Altcoins, the risk is too great. But if you just buy a bit of ETH or Apple stock every month, I bet you'll be pretty happy this time next year.
Having some stocks in your investment portfolio is a good idea, and it's good that you're starting young. Overall, you should be diversified as time goes on: stocks, bonds, cash. And there are various types of stocks, some more risky than others. For starters, it would be good for you to invest half your money is safe stocks, and the other half in more risky stocks. That way, you should see growth without the risk of losing all your investment.
Investing in stocks, oil, gold, or other things CAN be a huge source of income, but you must understand what you are doing, when to buy, and when to sell. You must also understand most of the time if you are making a profit on a trade, the other person is making a loss.
My sister and brother-in-law both had $100k per year jobs, but they quit their jobs and just invest full time now.
Instead open a free account on binance, invest in crypto.
In crypto your $ 50 can become $ 5000 or even $ 5 Million, if you invest or trade wisely.
It is possible.
If you would've invested $ 100 in shiba inu coin in January 2021 it would've become $ 100k.
You can google the math behind this.
Otherwise stocks are good too, but you need patience. And your capital should at least be $ 1000.
If you have less capital and you're willing take more risk only then invest in crypto. With $ 100 you can easily make at least $ 1000 in a year.
( I said at least! Max there's no limit. You can even make $ 10000 or $ 100000 too. )
After two levels of education (BA / MSc) in Economics I believe that if a person wants to invest or has someone who is able to do it and eat a good chunk of the profits, or bet on the market minimizing the risk and making little money, or using long-term strategies such as those found in Benjamin Graham, The Intelligent Investor, Harper Business, Harper & Row, Publishers Inc., 1973, p. 340, ISBN 0-06-015547-7. Forget about ponzi schemes like cryptocurrencies.
Its probably fine in the short term but if republicans win in 2022 I would get ready to pull out, as they will force trump back into office even if he loses in 2024, and then the inevitable economic collapse will come shortly thereafter.
It depends how you invest. If you're just throwing money around, then you're gambling. If you do research so that you make profit, and in turn make profit, then its smart.
As for me when it comes to investing in the stock market I always say don’t invest if you aren’t willing to lose.
Investing in stocks is stupid, but not as stupid as not doing it.
Stupid. Invest in tangible assets that can create cash flow for you.
If you have money to spare and you invest in things you believe in it is not stupid at all. Just know any of investment you make has the possibility of losing money
It is smart but you have to know what you are doing.
i think for personal gains, it's good. but on global humanity/societal/cultural level, it's stupid.
If you believe the world is going to grow, invest.
If you think the world is going to decline into anarchy, buy guns.
You're better off buying real estate... if you can afford it now?
It's a good place to stash some liquid assets
Dollar cost average into an index fund.
It's smart or stupid depending on you
stupid it's all rigged
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