Q&A: I’m 16 and looking to start investing. How can I begin and how much money should I risk at first?
Hi,my name is Anne,I did the following:
Q&A: I’m 16 and looking to start investing. How can I begin and how much money should I risk at first?
I have always been interested in the stock market and how it works, and I believe that I am not old enough and mature enough to invest. I have had a an hour job for about a year now, so i have a good amount of money to start with. But where should I start? How much money should I put at risk for my first time? Where can I find a good source to learn even more about investing? Thanks in advance.
Q&A:
Answer by calleigh
i wanted to do stocks buying and selling too but i did a crude research and i don’t think u can do it directly. i think u have to do it through an agent. go to ur bank and ask.
Answer by mom2ami
I’m not sure on this, but you may indeed be too young to actually invest in the stock market…unless of course you do so by way of giving money to a parent and having him or her invest for you. I would suggest taking your money and placing it within a Certificate of Deposit for now. Once you turn 18. then you would have a nice, sizable amount with which to open a very nice online trading account.
Answer by Chris L.
My brother started investment accounts for my children, two own stock in Southern Company, two in PSE&G (both are utility companies). Their accounts were started with 0 invested directly though the companies. Many companies have direct buy programs which require low investments to start. He puts 0 into each account for them each birthday and Christmas. It is really easy to do. You can try to go to the company’s websites and get information there. I think Coca-Cola has a similar program. On the other hand, starting a Vanguard IRA at your age would be a great option, you can learn more by going to www.vanguard.com. Both the options I described are long term, stable investments with low or no costs. Good luck! If you want to learn more, Money magazine is great for learning about investments, I also like “The Motley Fool” investors, both websites are informative and legit.
Answer by Ryan L
If you want to open a trading account you must have a parent co-sign on it for you. What you are looking to open is called a custodial account. These are offered by every major brokerage (TD Ameritrade etc)
Next, you have to become very educated on markets, how they function, what drives prices, etc. If you go into this blindly you will get railed. Try picking up a book by Jim Cramer. He is obviously eccentric but his books are good for someone starting out. Try Jim Cramers Real Money: Sane investing in an insane world.
There is no set amount of money that you want to risk at first. Start with the smallest amount possible, or even better, start out paper trading. This is simply keeping track of a stock without actually purchasing it, but you will get a feel for how things work.
Answer by Not My Fault I Voted Libertarian
read a few books first
you have to be legal age anyway
Answer by whun450
Don’t start with real money. Play the virtual stock market to start:
http://www.howthemarketworks.com/trading/account.php
I’ve also designed some software to help you do research:
http://stockresearchpro.com
Check it out and remember, practice on paper first.
Answer by IncomeInvestor
Hi,
Now is always the best time to invest in stocks that pay dividends. And 2008 is even better than most times, because stocks are cheap. You will need to go through your parents, because of your age, but do get started.
Consider opening an IRA. Sure, you’re a long way from retirement, and that’s the point. The sooner you start, the more time you’re taking advantage of the most powerful investing weapon of all — the reinvestment and compounding of earnings.
Dividend Reinvestment Plans, DRIPS, mentioned by someone earlier, are also a good way to get started with a small amount, because you don’t pay a broker a commission and they do the reinvestment of dividends for you automatically.
How much money you should start with depends on you. How much do you have? How much can you afford to invest for the long term?
If you are saving for college, you’ll need it within a few years and should NOT be in the stock market. Put it into a money fund instead. The stock market is too volatile for short term money, which is any money you know you’re going to need within 5 to 10 years.
best, Rick Stooker
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