Hi, I'm 21 and I'm very interested in buying stocks. What are the risks? Should I wait and do it when I'm older? My professor mentioned today that we need to do this things now, the younger the better because we probably won't get anything from social security when we retire.
2007-09-05 10:51:59 · 9 answers · asked by Anonymous in Business & Finance ➔ Investing
Sure, you can buy stocks...and I think it's a good idea. Historically, over long periods of time, stocks have the highest return of any type of investment. I think they're the best way to grow your money, but because they bounce up and down a lot, they're only appropriate for long-term investments (i.e. don't invest next month's rent money).
You can open an account with a discount brokerage (E*Trade, Scottrade, TDAmeritrade, etc.) or open a mutual fund account with someone like Fidelity, Vanguard, or American Century.
Unless you have at least $25,000 to invest, I would not recommend buying stock in individual companies. In order to reduce the risk that one company hitting hard times will wipe out your investment, you need to have your investment spread across many companies. A mutual fund or exchange-traded fund (ETF) that's based on a major market index like the S&P 500, Mid-Cap 400, or Russell 2000 is a good way to do that.
One other important thing to remember. The stock market has scary declines of 10% or even more periodically. DO NOT PANIC AND WITHDRAW YOUR MONEY when this happens. Over the course of history, the market has ALWAYS recovered after these drops and if you take the money out, you miss the rise that inevitably follows the decline.
2007-09-05 10:59:33 · answer #1 · answered by Dave W 6 · 0⤊ 0⤋
I'm not going to suggest how you should invest, but I completely agree with your professor that you should start young. Trust me, just getting older doesn't make people any wiser about investing. It just means there is less time for your money to grow.
People do make mistakes when it comes to saving and investing. But again, better to make the mistakes in your 20s and have a good idea what your doing by your 30s rather than waiting until your 30s or 40s to even get started.
2007-09-09 05:26:44 · answer #2 · answered by Todd 3 · 0⤊ 0⤋
Easiest way s to open up an online trading account. Not sure what's available in Canada. You can do a bit of research. You probably have to have a parent's name on the account until you turn 18. Fund the account with cash and start trading. There are, or were, online simulators that used real data to buy and sell. You don't get any money, but it teaches you how to do it. You don't lose any money either. Motley Fool comes to mind.
2016-04-03 05:21:04 · answer #3 · answered by ? 4 · 0⤊ 0⤋
actually, the risk is not that high provided you know what are you investing in. so key point, learn how to invest in stock market first before attemping any effort to get involve. otherwise, you'll be the victim or large financial institutions, fund managers, and hedge funds that are properly equipped with all the sophiticated softwares and tools as well as having syndicated networks.
invest while you are young is indedd a great advice. but just invest for the sake of invest, is not a profitable investment venture. identify your investment personality, enhance your knowledge and firm up your mindset.
2007-09-06 11:54:33 · answer #4 · answered by BigBen 5 · 0⤊ 0⤋
1) Yes.
2) Zecco
3) If you setup a 10% Stop Loss then you will lose up to 10% of your money.
4) No.
I am a Portfolio Manager with over a decade of experience in the Stock Markets and I will help you for FREE.
2007-09-05 16:13:54 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Credit card or checking account needed. Get all paperwork copied that you signed, before you leave. Yahoo.com had some places online to buy stock from.
2007-09-05 10:59:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I suggest that you talk to a financial adviser in your area and explain
what you want to do. they Will ask exactly what you want and how much you want to invest. and what long term goals you have. they can also get you started buying stock.
investing early in life is one of the smartest things you will ever do.
2007-09-05 11:18:09 · answer #7 · answered by gramps 2 · 0⤊ 0⤋
Open an account, fund the account, do your research, buy stock.
2007-09-05 10:58:17 · answer #8 · answered by homerunhitter 4 · 0⤊ 0⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.investingtutorial.info/
wish it will help you.
Good Luck , Best Wishes!
2007-09-05 15:07:54 · answer #9 · answered by Anonymous · 0⤊ 0⤋