stock market advice for newbie?

Question

I'm only 14 and I'm interested in getting into the stock market and buying shares, I saved up enough money but I need advice on......well everything, and my parents are clueless too, any help?

Answer 1

Congratulations on getting started. It’ll help you more than you know!

Your first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.

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 since you say you've got no clue!

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 like Real Money (he’s got a few).

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.

For free, you can start by visiting thestreet.com and investopedia.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 until you track many of them over time. 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.

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).

For 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. Take your time, and let it seep in.

As you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.

You can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.

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

First
Congratulations on even thinking about planning for your future.

Second
Educate yourself first before throwing your money around.

To that end, check out
http://money.cnn.com/
http://www.cnbc.com/
http://www.daveramsey.com/

And if you read one book, let it be:
http://www.wealthybarber.com/

You can buy shares directly from many companies without a broker (these are called DRIPS). First decide if you want to buy individual shares or if you would prefer buyin mutual funds. Mutual funds allow you to buy shares in many companies at one time (any of the web sites or the book can give you more detail).

Be patient. I started when I was 12 and have put 10% or more of my earned income into stocks and mutual funds. Eventually I will be able to retire much sooner than most of the people out there living on credit cards and in debt up to their eyeballs.

Good luck and again congratulations.

PS. And to all the people that are saying, the stock market went down 400 points, now isn't the time. Wrong, the best time to buy is when the stocks go on sale, I love buying chunks of shares when there is panic in the air. Why would you want to buy when everything is expensive anyway?

Answer 3

Get some ideas/ info from yahoo/finance or moneycentral/msn...both have " beginners guides" somewhere on their pages.
And just the opposite of one answer...now IS the time to buy ( cautiously) prices went down...in the next few days prices of good companies will be a " cheap" prices ( buy low and sell high is one of the first things youi'll learn !)
Once you have a little idea of what's going on, go to a site like E-trade and see if you can open a small account....buy a few shares of something you're familiar with or read about...see how they go..look into ETF's also ( find out what they are, what they represent, and get a few shares in a " sector" or country you like)
Just be cautious at first- don't put all your money on the line right away...get a feel for it.. and when you really make something , drag Mom and Dad into it!!!
Good luck.

Answer 4

I've been trading the market for just a few months. My cousin actually told me about this website ( http://pennystocks.toptips.org ) and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.

For more info: http://pennystocks.toptips.org

Answer 5

Stay away from it and you will do good for yourself.

But honestly speaking if you are truly interested in the market, I would suggest you do a little reading and possibly start looking at Mutual Funds as a great way to get started.

Remember Dollar Cost Averaging is the best approach when you have allot of time for your investments to grow.

Look for Investing Clubs, these are great ways to get started as well. There are so many books you can read on this subject, look for "After The Trade Is Made" as a great into into how the market actually works.

Look at performance #'s on Morningstar and Bigcharts as well.

Good luck and God Bless.

Answer 6

Take a look at what you and your friends are buying and then find out what company makes it. Then open up an account (you are going to need your parents for this) with a broker. I suggest one like Fidelity or Schwab.

As a rule, you should never invest in something you don't understand.

Answer 7

THE STOCK MARKET WENT DOWN BY LIKE 400 HUNDRED POINTS TODAY ITS PROBLY NOT A GOOD IDEA OF STARTING

Answer 8

An Apple a day...

Answer 9

Maybe try www.stock-exc.com