I'm 18 and want to buy stocks..what do I do?

Question

I have no idea of how to start. Where do I go? Is it online? What is a good company to buy? I work at McDonalds by the way..if that matters. Oh, and I have about $500.

Answer 1

With only $500 you may want to consider a stock mutual fund.

What is a mutual fund?
Click here
http://mutualfunds.about.com/cs/buildingblocks/fr/whatis.htm

With only $500 it would be difficult to be properly diversified only holding one stock.

Mutual funds with low minimums
http://mutualfunds.about.com/cs/fundfees/a/lowmin.htm

I applaud your desire to buy stocks at your age. Take a long term perspective because stocks tend to be volatile in the short run but tend to have good returns over 10 to 20 year horizons.

After you have more money to invest you can graduate from mutual funds and buy individual stocks.

I started with mutual funds and then moved to stocks when my portfolio grew.

Good luck.

Answer 2

Take the investment I.Q. test and get paid.

Now that I have your attention, you should put all of your $500 in a mutual fund that accepts that amount. I suggest the Fidelity Large Cap Value Fund. There are at least 100 other good funds that are similar, most of which I am familiar. It does not matter which fund you get into at the beginning as long as it will make your $500 grow. If you want start out on the right foot, I suggest the personal approach. Call Fidelity and tell the Customer Service person you want information about a fund (namely, the one I recommended). Ask for the prospectus and sales literature - that's the same as an investment guide. They will probably tell you that you can get it online. Terrific.

You fill out the application either online at Fidelity.com or you send back the application that they send you in the mail with your personal check. If you select that fund to invest in, you are on your way to making money in the stock market! Here's where the I.Q part comes in.

Take your time and read through the literature the company sends you. Look for the stocks the fund invests in (Bank of America, Citi, Exxon/Mobil). Study the difference in the way each of these companies went up in value. Better yet, call each one of these companies and ask them to send you an investor's kit. If you do that and read what they have to offer, you are on your way to becoming a rich person!

Are you with me, so far? Write to Fidelity or find them online. Open an account and invest in one of the highest rated funds in the stock market. Follow up with your investment by reading up on the stocks the company buys once a week, at least. You don't need me to wish you luck.

Hawk

Answer 3

Start reading the education section , 1/2 way down on left
Learn about stocks, bonds, funds etc .
Also read what the different columnists and Motley Fool have to say.

http://finance.yahoo.com/

Put your $$ in a savings for now that earns about 5% like the Citi esavings. When you get to about $2000, open an account at Schwab because only you can trade in your account. They cannot "churn" your account to make commissions.
Smart kid, go for it !

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

You may also want to start off by playing an online fantasy stockmarket game for a bit of practise first, such as this one:
http://www.simustock.com

As for a good company to buy, I'd suggest researching these:
GOOGLE (GOOG)
Toyota (TM)
Anheuser-Busch (BUD)
Walmart (WMT)
Canadian Pacific (CP)
Union Pacific (UNP)
Honda (HMC)
McDonalds (MCD)

Answer 5

Look in your local phone book under investment,s. Look for a investment counselor or stock broker. Ask you parents they are probable invested in a 401k or something like that. They will be able to help you get started. Look on your home page for money or investments that is a good place to start.

Answer 6

if your are still working at McDonald's your best investment would be to go to college. Once you have a career or a high paying job, that is when you should start your investing.

Answer 7

Scottrade.