3 answers
Carmen
Student
Lubbock, Texas
2
Questions
Updated
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What is the best way to do stocks?
What is the best way to do stocks, that lets me actually make money from it without costing me tons of money? Is there an app to use and what’s the lowest I can put money in and still see profit?
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3 answers
Kirthi KN
Computers
35
Answers
Hyderabad, Telangana, India
Updated
Kirthi’s Answer
I answered your other questions as well about online jobs.
I get it. You're working hard at a retail job, paying the bills, and you're hearing stories about people making money with stocks.
I'll be direct: "doing stocks" to "make money" quickly (like day trading) is one of the fastest ways to lose money. It's not investing; it's gambling.
But the "best way to do stocks" as a college student is to invest for the long term. This is how you'll actually make money from it. It's boring, but it works.
Here's the simple, no-hype breakdown.
1. The Strategy: Don't Buy Stocks. Buy the Whole Market.
Your goal isn't to pick the next Tesla. That's a full-time job. Your goal is to grow your money over time with as little effort as possible.
Don't buy single stocks: Buying just one company is extremely risky. If that company has a bad year, you lose money.
Do buy Index Funds (or ETFs): This is the answer. An index fund is a single "stock" you can buy that holds tiny pieces of all the big companies at once.
The Analogy: Instead of betting on one horse to win the race, you're betting that the entire race will finish. A common one is an S&P 500 index fund, which holds the 500 biggest U.S. companies. This gives you instant diversification, which is the key to lowering your risk.
2. The "App" & "How Much" Question
You're worried about cost, which is smart. You're looking for two things:
Commission-free trading: This is standard on most modern apps. It means they don't charge you a fee to buy or sell.
Fractional Shares: This is the most important feature for you. It means you don't need $1,000 to buy one share of a big company. You can buy just $5 worth of that same share.
Most major, reputable brokerage apps offer this. Look for well-known names like Fidelity, Charles Schwab, or Robinhood. They all have $0 minimums to open an account.
3. The "Profit" Question (The Reality Check)
"what’s the lowest I can put money in and still see profit?"
The lowest is about $1 - $5 using those apps I mentioned.
But you need to change your definition of "profit."
If you put in $5, you will not have $10 next week. That's a lottery ticket.
You will have something like $5.02.
The "profit" in long-term investing comes from compounding. That's the interest you earn, which then earns its own interest, over and over, for many years.
The best way to do this is to set up an automatic transfer. Even if it's just $20 a month from your retail paycheck, that consistency is what builds real wealth, not a single lucky guess.
Warning: Investing is not a savings account. You are never guaranteed a profit. The market goes up and down. You can lose money. The key is to leave it alone for years (think 5, 10, or 40 years) to let it recover from the dips and grow.
Optional next steps:
First optional step: Before you invest a single dollar, "paper trade." Many apps let you practice with "fake" money to see how it feels.
Second optional step: Look up "S&P 500 index fund" (like VOO or FXAIX) on a finance site to see what it holds.
Third optional step: Open an account with a major broker and start by putting in just $25. Your goal isn't to get rich; it's to learn the system.
I get it. You're working hard at a retail job, paying the bills, and you're hearing stories about people making money with stocks.
I'll be direct: "doing stocks" to "make money" quickly (like day trading) is one of the fastest ways to lose money. It's not investing; it's gambling.
But the "best way to do stocks" as a college student is to invest for the long term. This is how you'll actually make money from it. It's boring, but it works.
Here's the simple, no-hype breakdown.
1. The Strategy: Don't Buy Stocks. Buy the Whole Market.
Your goal isn't to pick the next Tesla. That's a full-time job. Your goal is to grow your money over time with as little effort as possible.
Don't buy single stocks: Buying just one company is extremely risky. If that company has a bad year, you lose money.
Do buy Index Funds (or ETFs): This is the answer. An index fund is a single "stock" you can buy that holds tiny pieces of all the big companies at once.
The Analogy: Instead of betting on one horse to win the race, you're betting that the entire race will finish. A common one is an S&P 500 index fund, which holds the 500 biggest U.S. companies. This gives you instant diversification, which is the key to lowering your risk.
2. The "App" & "How Much" Question
You're worried about cost, which is smart. You're looking for two things:
Commission-free trading: This is standard on most modern apps. It means they don't charge you a fee to buy or sell.
Fractional Shares: This is the most important feature for you. It means you don't need $1,000 to buy one share of a big company. You can buy just $5 worth of that same share.
Most major, reputable brokerage apps offer this. Look for well-known names like Fidelity, Charles Schwab, or Robinhood. They all have $0 minimums to open an account.
3. The "Profit" Question (The Reality Check)
"what’s the lowest I can put money in and still see profit?"
The lowest is about $1 - $5 using those apps I mentioned.
But you need to change your definition of "profit."
If you put in $5, you will not have $10 next week. That's a lottery ticket.
You will have something like $5.02.
The "profit" in long-term investing comes from compounding. That's the interest you earn, which then earns its own interest, over and over, for many years.
The best way to do this is to set up an automatic transfer. Even if it's just $20 a month from your retail paycheck, that consistency is what builds real wealth, not a single lucky guess.
Warning: Investing is not a savings account. You are never guaranteed a profit. The market goes up and down. You can lose money. The key is to leave it alone for years (think 5, 10, or 40 years) to let it recover from the dips and grow.
Optional next steps:
First optional step: Before you invest a single dollar, "paper trade." Many apps let you practice with "fake" money to see how it feels.
Second optional step: Look up "S&P 500 index fund" (like VOO or FXAIX) on a finance site to see what it holds.
Third optional step: Open an account with a major broker and start by putting in just $25. Your goal isn't to get rich; it's to learn the system.
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer, TRIO Program Administrator
1009
Answers
Tacoma, Washington
Updated
Paul’s Answer
The Stockpile app is very easy to use. This might be an option to consider, especially if you are just beginning to invest in stocks.
Ramez Quawas
Banker
2
Answers
San Diego, California
Updated
Ramez’s Answer
first, before you even start you need to study the markets and read everything you have access too wayc CNBC , Bloomberg,...etc , it would not hurt if you subscribe to accredited news site , like CNBC or Bloomberg.
then start small couple of hundred and Do NOT get emotional, focus on teh numbers .. then grow over time ,
the most importnat do not be gready and think rationally
then start small couple of hundred and Do NOT get emotional, focus on teh numbers .. then grow over time ,
the most importnat do not be gready and think rationally