I'm 16 and want to start investing in the stock market. What are some of long term options?

Question

I have more or less $50-60 dollars that I want to start investing for the long run. What kind of stocks will do best for me in the long run? What stocks are safer and which are more risky?

Answer 1

Congratulations on getting started at a young age. It’ll help you more than you know! You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!

How to invest depends on what you already know. We'll assume that you're beginning.

A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.

Another good one is one of Jim Cramer's books.

But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com

For free, you can start by visiting thestreet.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc. If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like investorsbusiness daily or something like that that can help you identify good stocks.

*** Do a quick search (at the top of the page) on ROTH IRAs. You’ll want to put some money in there. ***

Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).

As you get more advanced, you might want a technical analysis book like Murphy's Visual Investor or A Technical Analysis Course by Meyer.

If it's discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter

I know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin.

Since you're starting with a smaller amount of money, you'll probably want to save up at least a few dollars so you don't get eaten up by commissions (around $10-15/trade). When you have say $200 or so, you can put it into an ETF or into a growth stock. Meanwhile, you can always papertrade to practice (highly recommended).

Start slow, then as you figure things out, you can buy more shares.

Congrats again on getting started. If you have any questions, please let me know.

Hope this helps!

Answer 2

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Answer 3

I'm not a fan of insurance for young children. Part of your money pays for insurance that you very likely will never need, and if you do will not begin to compensate. Instead, I'd suggest a positive investment plan. Think about mutual funds to start with...these can be held through a Custodial account. As your investments grow, you could consider individual stocks in the future, but perhaps the portfolio won't be large enough before they reach college age. Alternately, you might consider a 529 plan to save for their college education. Check the link below. Best of luck to you.

Answer 4

You should probably do mutual funds rather than specific stocks.

You could open a Roth IRA if you have earned income, and you can put your money into a stock mutual fund (an index fund that mirrors the total stock market or the S&P 500 would be a good long-run vehicle).

With only $50-60 you'd be better off with the diversity that a stock mutual fund presents.

Answer 5

KO - Coca Cola, a cash cow.
MCD - McDonalds has been good for me.

Consider a no-load, no transaction fee mutual fund for diversity. I like Real Estate, UMREX in my Scottrade brokerage account.

You can do this in a Coverdell Education Savings account at Scottrade, for tax free education gains for higher education. But I recommend that you have an adult with investing experience approve all your investments.

There are always risks, and you can lose no matter how good you or they are.

PS: $50-60 is not enough for stocks, the transaction fee of $7 to buy and $7 to sell will take over 25% right there.

Answer 6

WAY TO GO KIDDO !!!!

You need to start somewhere and now look at all these opinions you have on what to do with that $$$.

I suggest you start a ROTH IRA and put a mutual fund within that Roth. TO help you understand let me explain it differently...Think of an IRA as a wheel barrel.... this wheel barrel is nothing by itself for it just sits there. You need to make this wheel barrel work for you so you put something in it. A mutual fund is something you put in it. You want to fill your wheel barrel to overflowing for retirement !!

Once you start this IRA, you can now start to read up on the stock market... read read read !!!! Email companies and request their prospectus', it is free! read about the companies that interest you. After a while when you have more money to invest, you can find a company that you can buy directly from them without a broker. EASY EASY !!

Search : "direct stock purchase plans" and it will get you headed in the right direction. Heck... persuade friends to learn this too !! Remember ONLY YOU can make your future SWEET !! Get started NOW!!!

Congratulations on thinking about this NOW rather than when you hit 40 and did nothing for your financial future !!!

Answer 7

with only $60 you are going to be hard pressed. Your best bet are DPP. There are only a few companies that have them. Bob Evans Farms is one that I know.

The stocks that I like for a person such as you are index funds that invest in China and closed end funds that invest in India and China. They should be excellent long term investments. TDF is one IIF is another. Buy them through sharebuilder will be the least expensive.

Answer 8

This penny stock service has years of proven experience. Ultimately it is the best service for beginners to use https://tr.im/E0VH3
You will have to wait between 3 and 10 days to get into the system in most cases. When I signed up it took 8 days. I wished it was faster, but if you can wait a week or two to start earn life changing money than you will have what it takes to make it in this business.

Answer 9

Not sure you will be able to do this without having someone above the age of 18 doing the investing for you. It is illegal for a minor to enter into a contractual agreement,

Answer 10

Consider getting a mutual fund. CAIBX is good (Capital Income Builder). You can start with $50/month. This is from American Funds.