Looking to start investing in the stock market?

Question

I'm 17 I have never invested in the stock market before I've been thinking about it for a while though. I do know the very basics of how it works. I'm thinking about starting out small and investing a couple hundred dollars in some penny stocks. Can any body give me some advice? I'm thinking about using Etrade.com is this a good Site?

Answer 1

An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf.



Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It's a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O'Neil too--he's the founder of IBD.



Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.



After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade--this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.

Answer 2

You want to spend the best $20 you have ever spent in your life?

Get a book from your bookstore called

Investing for Dummies or The Idiot's Guide to Investing

^ not an insult - these are great books.

They will also have a chapter on the different brokerages, their fees and what they offer



My dad lost his shirt in a penny stock.

He invested $10,000 and then news came out that the company was in bankrtupcy.

He could not find any buyers for his stock - so he could not sell.

He saw his $10,000 become 5 cents - I still think he holds it till this day since he doesn't want to bother calling to get rid of it

Answer 3

Since you are only 17, you cannot open a brokerage account on your own, but one of your parents can open one for you in your own name. When you turn 18, the investments will become yours and you will gain control over your account. I would highly avoid penny stocks, since they are extremely risky and vulnerable to pump and dump schemes. Essentially, fraudulent people buy penny stocks and promote them, which drives their prices up. The fraudulent people sell, making everyone else like you lose all your money. The following article is how to get started investing in the stock market for the first time. I hope this helps.



http://www.associatedcontent.com/article/5694286/how_to_invest_in_the_stock_market_for.html?cat=3

Answer 4

First of all, don't listen to anyone who tells you "penny stocks are crap," "don't throw away your money," etc. Penny stocks are very profitable, just you need to do these things:

1). Learn to read charts (and maybe Level 2 quotes, those are helpful) - first and most important step. Charts and indicators are the secrets to penny stock happiness. Get started here:

http://www.stockhideout.com/video-text-chart-lessons/

2) Get your feet wet - paper trade (fake trade) before you start using real money. Go here and start a new paper trading account

http://www.marketwatch.com/game/

3) Set up an account at a broker that is penny stock friendly (the best in my opinion are TD Ameritrade, Etrade and Zecco, although Zecco has some restrictions, it is the cheapest commission-wise)

4) Follow no one - one dangerous thing about penny stocks is that there are tons of pumpers out there, that is, people who promote penny stocks to make them out to be better than they are. It's fine and helpful if you have a stock chatroom that you can go to each day for running stocks, but don't listen to the pumpers. This is my favorite:

http://chat.stockhideout.com/flashcoms/index_ads.php

5) Make money!!

Other things:

You might want to have a real time Level 2 quote service, as well as a real-time chart service. Some options (although they are a little expensive):

http://www.equityfeed.com/

http://stockcharts.com/help/doku.php?id=support:services

and

never get into a stock that doesn't have volume (a lot of shareholders)!



BTW, I know its hard to believe but I'm only 14 right now, 15 on the 15th! Hope I helped ;)

Answer 5

One tip is to look at. What are the most important things that people will keep purchasing.

As well as there is a new technique for transporting gas and if you invest in this it is going to come back 11100 xs to those who invest in it.

Or go to vanguard and get a diversified portfolio, the minimum total investment is 3000$