I'm 16, whats your best tips and advice and other info on the stock market?

I'm 16, and when i go to college I want to major in business. The stock market intreges me! I know somewhat about it. But, how do i invest and what kind of cheap stocks would be good to start with?

Cheap, no no.

like Warren Buffet says to para phrase
"I'd rather pay a mediocre price for a great company than get a great price on a mediocre company."

Same tips that come from Thousands of "experts" for decades.

1 Start early, 16 is good, better than good excellent!

2 Invest for the long term, years not days or weeks. greater than 90% of short term (day) traders lose money.

3 Invest in great companies that are "on sale" share price wise

4 dollar cost averaging: buy all the time to take advantage of market ups and downs

5 diversify: own stocks over different industries

6 do your research

Seem like simple tips but they really work that's why they have been repeated millions of times.

cheap doesn't mean the price per share is cheap

GOOGLE stock trade at 670 a share and it's still a cheap stock

it's cheap because of high growth rate and high return therefore the value of stock goes up

don't invest in stock market until you know what you are doing.

good luck!

If I was starting over again I would simply find a couple quality mutual funds from Vanguard.com and then enjoy life. Trying to invest in "individual" stocks is a very time consuming and sometimes very frustrating process. Since you have plenty of time before you retire just go with a few quality mutual funds and enjoy life. Remember there is more to life then money much more.

TIP - Looking for cheap penny stocks will ruin you eventually. Cheap stocks are cheap for a reason because most of them are worthless.

try http://goldenbullstocks.com and do your research

Start by reading the book "Investing For Dummies." Learn the basics first.

If you want a good form of investment, I'd suggest a mutual fund that tries to replicate the S&P 500. If you looking to get a feel for the market and try your hand by picking stocks, id agree with he post above me... make sure you know what you are doing; the stock market is filled with pros.

I'm 43, and I started being interested in the stock market when I was 14.

Pick out a handful of stocks that you have an interest in and start following and studying those stocks. Yahoo finance is a free and decent resource. Don't invest any money now. Just observe and learn.

Occasionally watch CNBC to get a feel for what moves the market. The morning segments just before and just after the market opens are the most educational. While watching CNBC don't get wrapped up in the Jim Cramer nonsense.

After awhile start paper trading (hypothetical trading - no real $) to see how trading works.

Hope this helps.

Buy funds so you will be diversified.
Buy on panic down days.
Study technical analysis.
Don't waste your time or money on value investing.

First, I do not recommend you purchase stocks as an initial investment. You would be better off with the diversity of a few good mutual funds that will spread your risk over several companies. If you have a solid base investment in mutual funds, and want to purchase another type of assets, Stocks, Bonds and Real Estate are all good types of investments, but you should research each carefully before deciding to invest in any one type.

Having said that, the best way to invest in Stocks, since that is what you asked about, is to educate yourself about the best methods for evaluating stocks. I recommend reading a couple of books before you take the plunge, lest you risk making a poor choice and losing all the money you invested. The books I would recommend, "The Intelligent Investor," "The Warren Buffett Way," "Value Investing" and last but not least, "Securities Analysis." The combination of information contained in these four books will teach you more than enough to make wise investment decisions.

If after reading these books you still want to invest in stocks, consider this: the three most profitable industries are:

1) Banking
2) Insurance
3) Consumer Beverages

Letâ€™s consider this for a moment, what are some of the stocks Warren Buffett, arguably the worldâ€™s greatest investor, owns? He owns shares of Coca Cola and Guinness (two strong beverage companies), Geico and General Ray (two solid insurance companies), and Wells Fargo Bank (a very good financial institution). If these three industries are good enough for Warren Buffett, they should be good enough for you. Now it is up to you to decide which particular companies you want to invest with.

One more note you might find helpful. Since you are young, you should consider putting the stocks you purchase in a DRIP program. DRIP stands for Dividend Reinvestment Program. These programs are designed to reinvest the regular dividends paid out to the shareholders back into purchases of additional shares of the company. Over a long haul, of five, ten or more years, an investor can end up owning a considerable amount of shares in a good company. If you want some additional information about this kind of an investment vehicle, check out the American Association of Individual Investors website. They have a ton of information about how to get started in the stock market. Just a little food for thought.

A final note, you expressed an interest in majoring in business. I think that is great and I would encourage you to pursue that goal to its fullest extent. Pick a good school, study hard and complete an MBA. In the long run, it will be the best investment you can possibly make.

Best of luck!

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.034
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy