When I turn 18 how do I buy stocks to begin investing?

Answer 1

I commend you for wanting to begin investing at sucha young age.

There is nothing wrong with buying stocks. When I was younger, I did the same thing myself. If you want to buy stocks, I would check with your local bank to see what they will charge you to do so. If they charge you a reasonable price (under $20, give or take) and are willing to offer some advice, I would go with your local bank. Some banks charge you nothing for stock trades; it may be a perk of banking there. The nice thing about going with your bank is that you can usually get the money instantly in your account.

You can also go online to etrade or TD Waterhouse and they will charge you under $10 per trade. Typically, you have to deposit money in their system and if you need it in a hurry, you have to wait for a check in the mail (you may have the option to link directly to an account, I am not sure).

My advice to you is don't invest in stocks on your own. If you are just starting out investing, I would go the mutual fund route first. There are a little over 7000 stocks available in America the last I knew. There are also many more than 7000 stock brokers. The significance of this is that you will never know about something about a company before Wall Street does. There are multiple stock brokers per individual stock in America, many with connections. Chances are they will find everything about before you do.

If you are looking just to hold the stock of a company and really don't care what happens, go buy the stocks. There is nothing wrong with that. If you are looking to make money while you are young, put your money in the hands of professionals and go mutual funds for a while, at least until you get a feel for investing.

The world of mutual funds is quite a bit more confusing than stocks (different types, more fees charged than a doctor's office, etc.). Don't be afraid to ask question, either of a broker, on a forum like this, or of the company.

Good Luck to you!

Answer 2

How???... open up a discount brokerage account with someone like eTrade, Scottrade or TD Waterhouse. They offer very cheap ways to purchase stocks. From $7 to $10.

However... I would suggest that you spend 3 to 6 months accumulating at least $500 and preferably $2000 in a high interest money market from ingdirect.com or someone offering anywhere from 4-5% on your savings. And during that time, make sure you watch Mad Money on CNBC every single night it is on.

Jim Cramer is entertaining and has already done what you are trying to do. Start with nothing and end up with a lot. Even if you don't like him, it is the easiest and fastest way for you to learn about buying and selling stocks.

He will make you (and me) rich. No selling here... just a fan.

Answer 3

Read read read every book you can about the market. You may not quite understand it all but it will help.

Next, be saving saving saving for the day you decide to buy.

You can search online here for companies that offer you to buy directly from the company itself. Search "direct stock purchase plans" for companies such as "Walmart", "Ford", "Lockheed Martin" & "Xcel Energy". You contact them and ask for a "Prospectus", ITS FREE, and you can learn about the company and see what their minimum initial investment is, (anywhere from $50 to $1000)

After you buy one or two stocks that way, now is the time to open an online broker account such as "scott trade". It is sooooooo simple it's nuts !!! Have some companies picked out that you want to buy and for a $7.oo fee each you get to buy them. You can even call Scott Trade with questions but there is also an "educational" section on the website for you to learn as you go.

Get going now !!! and pat yourself on the back for actually posting this question and caring about your financial future !!! *high five* !!!

Answer 4

First you visit this these 2 sites to gain an understanding of how it all works:
http://www.fool.com/school/basics/basics.htm
http://www.investopedia.com

Then you open an account to do so, http://www.sharebuilder.com is good place for beginners in investing on the stockmarket to start off when first dipping their toes into it.

Before you spend ANY money on buying stocks, you first need to do some research (and a quick bit of maths) looking at the company's financial reports + financial forecasts. For this, I recommend:
http://quote.fool.com
&
http://finance.yahoo.com

Answer 5

Scottrade.