I am 18, I want to invest in something such as a stock or something, what is the best thing to do?

Question

I just purchased my fisrt home.

Answer 1

Owning a home at 18 puts you way ahead of the game because a home is one of the best investments out there. First Id pay off all debts (besides mortgage and anything lower than a 6% interest rate).

Ive did ALOT of research myself on this when I was your age and this is the conclusion I came to. Many say real estate is the best investment but dont realize if they invested in an simple index fund that mirrored the stock market (since its inception) they would have had much higher returns than appreciation from property in that same timeframe. Not to mention avoid all the hidden cost associated with real estate. So all things being equal (and excluding starting a business) the stock market is the best investment vehicle there is as far a making money legally. But thats not to say real estate is not a good investment either.

So Id first get an no load index mutual fund...As far as buying stocks, buy something you know about...For example if your hobby is videogames one should know whats going to be hot in that sector. MSFT has Halo 3 coming out Sept 25 which historically has been tremenduosly popular so obviously around NOW is you want to buy that stock in anticipation for it. Dont let others make it seem like its more complicated than that. I started investing when I was 19 and Ive consistantly beat the DOW and the S&P 500 with no problem...Remeber the market is nothing more than supply and demand.

Answer 2

Wow, I am impressed - you own a home at the tender age of 18.
The best advice I can give you on investing, is for you to have no debt.
Settle all your debt first before you invest.

If however, you are adept at simple math such as percentages, etc then you can invest a little while still maintaining a mortage.

An easy medium to invest in as a staring point would be unit trusts where you pay over a fixed monthly amount and the money is investing on your behalf by an asset manager.

Later, as you become more savvy, you can switch to shares, futures, cfd's and so on.
Stay away from warrants as they are designed to work in the issuer's (bank) favour. Stay away from the forex market as less than 10% make money in this market. Gambling at the casino would be preferable to the forex market.

Pakistan's stock market has appreciated by 700% in the past 2 years. South Africa's market has appreciated by 300% over the past 3 years. The Chinese and Indian markets have gone off the chart, too.
200,000 new trading accounts are being opened in China EVERY day. So that major crash everyone has been talking about - it's on hold because of the all the newcommers to the market.

Pay off your debt, build up capital and then invest in shares.

If you are the adventurous type, don't pay off your debt, use the money to trade in futures and become a millionaire overnight. If you fail, you could lose everything as trading in futures is risky. Remember this phrase, STOP LOSS or get lost.

Answer 3

So what you are 18. That does not make you a suitable investor in any thing. All Stock brokers will ask questions on net worth etc. The best for you at this point is a roth ira and spread any disposable income into several mutual funds that have a10 year or longer track record and low cost and fees.

Answer 4

OK.... you're looking for investment advise from strangers with no way of knowing their qualification or motives. Good luck with that. Be very carefull.

My suggestion would be is to read a couple of books on retirement investing and investing in general. The "Dummy" series has some excellant books in this areana.

Learn "asset allocation".

Start with Mutual Funds. No-load, inexpensive, large cap funds from;
Vanguard, T. Rowe Price or Fidelity.

You're moving in the right direction. GOOD LUCK!

Answer 5

broking provider is area and parcel of making an investment in shares. detect a stable broking provider! once you're an entire time investor, get admission to on line procuring and merchandising. while you're already busy with different job or organization, commerce by broking provider. Divide your capital into 4 components. make investments one area in good 10 Nifty 2nd area in good 10 Mid Caps ( around Rs one hundred priced) third area as consistent with your analyses (Strictly by skill of your selection) Fourth area save as money. whilst your investment liked 20% take the earnings area to your cash. whilst it is going down make investments extra from money. attempt this & terrific desires!!!

Answer 6

If you aren't familiar with investing, start looking at exchange traded funds (ETFS) in a ROTH IRA. Then start reading up via a subscription to Forbes, Smart Money, and Investors Business daily.

Answer 7

Open a money market account with www.vanguard.com, and start putting away money for college. Your college degree is the single greatest investment you will ever have. It will allow you to have higher-paying jobs the rest of your working life.

When you are done with college, and ready to invest for retirement, you can read my book at www.invest-for-retirement.com . It's free to anyone and everyone who wants to learn.

BTW, I applaud your enthuiasm for wanting to learn about investing at such a young age. The key to building wealth to begin investing early in life and continue regardless of market conditions.

Answer 8

If you have a 401k, max that out, at least to any matching from your firm.
Diversify with large cap, medium cap and small cap funds.
If you have any money at all left, put it into a Roth IRA.
$25 a month will make a huge difference to your retirement.
$50 or $100, would make a major difference.

Answer 9

Investment property...Buy a 2 or 3 family house. Let the renters pay your mortgage while you accumulate equity...Plus there are tax benefits as well.

Answer 10

Forget all the advice you got for free. You want to max your annual returns on the money you invest. I can show you how to earn 24% on your money. If no one shows up with a better offer anyway.