Stock Trading Help?

Hi,
I am 16 years old and have a huge interest in the stock market. I wanted to get involved within it and make some succesful trades. How would I go about it?
Thanks,

I will share what I have learned so far.

Learn how to read the stock pages and DO it.

Read the stock pages every day, and read the business sections the stock pages are located in.

Learn about the local companies in your area that are represented by the stock symbols.

Keep tabs on local news from people in the companies you are researching (over time, obviously) learn these companies ranges or high low ranges that they trade within and keep abreast of developments within th companies themselves by talking to people and reading.

Stick to the old adage "buy low, sell high", period.
remember the stock shares are NOT your friend, NOT your pet, not your family etc. You should have a cold heart towards the shares and the investments. They ARE a TOOL, an investment tool you are using to acheive (hopefully) your $ goals. Know the ranges, know the company trends, buy local area stocks and keep a cold heart trading at or near the lows and at or near the highs. Follow your gut instincts and do noty trade away your earnings with excessive trades.

Remember even 1000$ split into 10 equal investment lines of 100 each can do it for you.
By being patient ( you are very young, thank your God if you believe in such things), and by being able to successfully double even ONE of the lines about 13-15 times without serious losses on that one 100$ line, you can really make it happen. Do the math and hold onto your huevos when it gets to the point you are looking for those last few doubles. remember even though it is however much money it really is "only a hundred bucks" right? Be bold, not greedy or stupid.

Trade your own money with Scottrade or similar.
Nobody cares about your money more than you do. Set goals for where you think a stock will go and when it hits those goals sell. just sell and reinvest.

Diversify or "dont put all your eggs in one basket."

Read, study, identify future trends and bet on them when it would seem to be approprio by investing measured shares then,,,

Ride the tide on stocks that are rapidly growing in value.

Learn and study the "rule of 7." Find creative ways to diversify your holdings to create doubles.

Learn the daily swing patterns of stock prices,
many if not most stocks vary a few percentage points in value EVERY day. By being VERY patient, and very careful, you can take a seemingly flat running stock and turn a nice annual or quarterly profit just by buying low and selling high every couple of days,,,,,, remember though that excessive trading can be like an addiction. You must "recapture" the cost of the (#1)buy trade, the cost of the (#2) sell trade and preferably the cost of a (#3)rebuy trade, plus any tax amounts you may have to pay in capital gains PLUS an acceptable (to you) profit margin in order to consider a gain worthy of taking by selling those shares. There is a very important formula here in this paragraph. Learn it. By taking a few or even a single percent gain repeatedly over time your investment will grow on itself in a "compound fashion." 100 x 1.01% = 101,,,, 101 x 1.01% = 102.1,,,, 102.1 x 1.01% = 103..0301 and so on. By continuing this trend out you can see that a "NET" 1% gain, taken repeatedly turns into a very tidy profit, with patience and study and a cold hearted attitude towards your investment tools, the shares. This technique can allow you to take and moderately stable stock that trades within a certain range and create a nice annual profit from what would seem to be a flat or low annual rate of increase on that stock. Learn it live it LOVE it.

That is all I have for now. Take a look at stock symbol F for ford over the last few years. It was at about 13-15 dollars and has slumped to down around 6-7 within the last few years. That is a "double" range. Ford has been hammered and is trying to "turn it around." Even in the midst of this company turmoil it has been possible to ride daily highs and lows over time to turn handsome profit.

best of luck to you, stay focused and remember that very often, "the funny thing in life is that if you choose to accept nothing but the best, very often you WILL get it." Author unknown.

Last and best tip,,,, give back to good causes NO LESS THAN a FULL 10% of your hard earned money. You will be rewarded greatly by sharing your abundance with those less fortunate. I believe this as much as I believe anything. Believe.

Zilla out.

1) You will first need to have a brokerage account. Not sure if a minor can open one up or if your parents need to do that for you. I use TD-Ameritrade. Once it is open, you will need to fund the account before your can start buying and selling stocks.
2) You need to decide how active you want to be in your trading. An investor will buy a stock and hold it for a long time. A swing trader will buy stocks and sell as the stock daily prices vary. A day trader will be making intra-day trades in a stock.
3) You will need to decide how much risk you want to take. Usually, the lower priced stocks with lower volume will have higher risks associated with them than the higher priced and high traded volume stocks.
4) Some investors use stock fundamentals to make their stock choices. Companies have been known to not tell the truth about their real financial situation. I for one use technical analysis. Get some books on the subject and learn prior to actually using your real money. Paper trading for a while is a great tool to see just how good you really are.
5) I use the yahoo group ComputerProgramPicks as there is no subjectivity to the stock selections.

Best of luck to you. Having luck is executing with a prepared mind.

http://www.fool.com/

I think they even have a club or newsletter for teen investors.

The best way to learn about the stock market is to watch it. The second best thing is to observe what professional traders do. Learn some stock market basics, join:

http://finance.groups.yahoo.com/group/TradingZoom/

and watch for a while. The best books are listed on the front page.

Good luck!

Dont gamble it away as in day trading. Theres basically two types of day traders. Losers and soon to be losers. Do research to find the numbers on that. You are young and safe traditional styles of diversification will bring you rewarding and safe investment returns. Getting started try a blue chip stock and hold it for a few months. I wish I was sixteen again and didnt go the day trading method. It only takes one loss to offset many winners. Smart people invest and gamblers day trade. Casinos are beautiful places built on the money of people who think they can gamble themselves a living.

Find a cheap brokerage to use such as Etrade, Fidelity, etc. Open a UGMA/UTMA brokerage account with your parent/guardian as the custodian. Then you can go ahead and trade.

If you have parents who wouldn't mind opening an account for you, you could do it that way and also a good way to get involved is a virtual trade account 100% free to join and no age limit.
try http://goldenbullpicks.com

Learn about the market and how to analyze stocks. Maybe buy the Book Investing for Dummies by Eric Tyson.

You also need to be 18 years old to open a brokerage account.

But for now, do study. And work with your dad. If he's knowledgeable, ask him! if he is not, then you should have him start reading investing books too! :)

Ideally, what you do is this. Look at what you know. Do you like McDonalds? Then look into McDonald's stock (MCD). If you like games, consider Gamestop (GME), a very good investment and we are in the middle of a gaming bull market:
(analysis of video and computer game stocks: http://tinyurl.com/2cwgxs)

Then, in conjunction with your dad, study the stock. Look at the numbers, look at the Price to Earnings multiple, read the reports. Study the stock. Then once you decide, buy your first stock. You get to see how the price goes up, or price goes down. When you buy a product from a company, you see how it can affect a company's price. You learn more about the market this way.

Also, watch "Mad Money" on CNBC hosted by former Hedge Fund manager Jim Cramer. The show can be a bit crazy, and lots of people in Generation Y like the show:

But he had a very good record as a hedge fund manager, and maybe he can help further inspire you.

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