How to Invest Your First 100$ in the Stock Market

Making money by investing in the stock marketmarket investment based on stock quotes for a
requires great discipline, patience, and a cold reasoningcompany in that industry. For instance, if oil and gas
power. When you are investing money in the stockcompanies are doing well, why not choose an oil
market, your personal feelings (other than the desire tocompany to invest in?
make more money) don't matter. You cannot beHowever, you also need to keep in mind that if you're
skittish, nor can you hold on to something with anybeginning with just $100 to invest, you won't be able to
personal attachment when you sense that you needbuy that many shares of a lot of established
to sell.companies-their share prices can be very high (higher
You should also concentrate your energies on just onethan $100 for just one share).
stock sector (such as metals or energy) to help giveOne way around this obstacle is to invest in "penny
you mental clarity.stocks". These are stocks of companies whose
Some people don't have $1000 to open a usual stockshares are only selling for a couple of bucks (so it's
brokerage account, and they wonder how they canactually more than just a penny but the principle's the
make money in the stock market beginning with justsame). Penny stocks can have great upward potential
$100.and make you a lot of money when they start to rise.
There are not very many stock market investmentIf you buy penny stocks for, say, $3 a share, when
accounts that can be opened for just $100. However,their share price gets up to about $15 it's a good time
there is at least one very good investment accountto sell and take profits.
offered by the highly respected financial institution ING.But don't just pick any penny stock because it's cheap.
With ING Direct's Share Builder account, you can openAgain, pick a penny stock to buy and trade in from an
a stock market investing account with as little as, yes,industry, such as oil, that is going great guns (read the
$100, and begin trading immediately. You can buyfinancial news). And watch it carefully. If you buy
stocks for as little as $4 and set up your Share Builderpenny stocks at $3 a share and they go down to a
account to automatically buy and sell or a regularlybuck a share, sell them and cut your losses. You
scheduled basis.haven't lost that much money because you did not
If you open up an account like Share Builder, you wantinvest that much-another great penny stock
to have a plan in place for how you are going to investinvestment advantage.
the money. If you are a beginner, you should probablyWhen you become more experienced as an investor
invest in a company that's listed on the Dow Jonesyou can buy options contracts often for $100 or less.
Industrial Average, the NASDAQ, or the S&P 500.Each options contract lets you have temporary control
These companies are considered to be pretty stable,of 100 shares of a given stock. This has the potential
established, and doing well. The three different indicesto make you a ton of money in a very short time with
represent three different groups in which stocks areonly a very small investment. But you need to know
listed according to different criteria.what you're doing first because you can lose lots of
Another thing to keep abreast of is which industries onmoney fast here if you don't.
the whole are doing well. You can then pick a stock