Advice for Teen in Investing in Stock Market?
Congratulation on taking the step toward making money. A lot of people are scared to invest right now but it's the best time to invest. Before you invest you should open an account with e trade, Ameritrade, Scott trade, which ever one you feel meets your standards. I personally use e trade I like their customer service better but every one has different needs like I said. Now when investing at first invest $100 on a penny stock something that doesn't move to much. When you first begin you don't want to take huge risks. Take it slow and learn the market, read on the company's, profit, # of employees, new contracts, new products, make sure they have filled papers with the SEC. If they do not file papers with the SEC don't invest in that company because then they don't have to share information with you. If you have no info you wont know if the company is doing good or going under. As far as fees go they all charge from $7-$10 per trade. There are no monthly fees for trading, unless you want to get advanced charting but you don't need it when you first start. A good stock that I started with and its a pretty good stock is (SIRI) Sirius XM Radio Inc. (NASDAQ) right now its trading at about $1.80 which is a fair price for it and will go up as the economy does better. Good luck
What is best stock market advice you have ever got?
Never buy a stock within having done your own research first.I have seen so many people getting caught up in the hype of companies and investing at the highs and getting spiked in the share.I always research my companies, find out what the news catalysts are going to be that will drive price growth and what the big risks are that will move it down.Once you know all of this then you will have a much better idea on the fair value to buy a share at and where it could end up and when on news being released.I tend to look 2–3 months in the future, as many people wont starting buying into shares until a couple of weeks before news is due and the price is already up 10–20% by that point.Buy early and sit on your hands until the news lands. That is what I do to great success.You can find more of my ramblings here:The AIM Investor - Research Notes and Tips for AIM Shares
What is the best stock market advice you have ever received?
Honor your stop losses, and trail up your stops.Most investors, hold onto their losers and wait for them to recover. Big mistake. They also do not know how to manage winner.Here is how I manage my stock via stops, and ever since my returns have increased by almost 50%.Numbers used are just for example, it’s the mechanical process I want to you focus on.Buy XYZ for $50. Set my stop at $49. Stock drops to my stop, I sell and move on. If XYZ moves up to $51, I trail my stop up to $50.50 and lock in 50cts of gain. If my stop is triggered, it’s sold, and I move on. I continue to trail my stop up, as the stock moves up in price until I am ultimately stopped out. I’ve had stocks run for months (30% to 40% return), and once they are done running, they will trigger my stop, whereas someone else will continue to hold on, as the stock moves sideways and chops around for months. Moving that money to a new investment, and starting over. Rinse and repeat.I do not set arbitrary price targets, as I am not professional stock analyst, and neither are you. We have no idea how far a stock might run. So we let winner run. Same applies in the other direction. We don’t know how far a stock will fall, how long it will sit lower, so we cut losses early and redeploy. The key is, you want your capital working constantly, and this is how you do it.My returns went from about 16–18%, which I thought was very good, and now averages about 25%. On a $1 million portfolio, you are talking another $80k more in returns, and over 5 years that over $500k more in your portfolio.If you have a stock you do not want to sell, that fine. Sell calls against it. Sell the 45 day expiry, with a 20 delta. You want to collect enough premium to make it worth the effort, but you don’t want the stock called away, so the strike price needs to be far enough away to decrease the odds of this happening. This works best when it’s chopping around in a range.
Teen Investing in stock market???
You can't open an investment account in your own name for another year until you are 18. I recommend you take that time and learn all you can about the stock market, so when you are ready you can get started right away. www.investopedia.com is a good place to start. Look at all their beginner articles and tutorials to get started. If you don't like research and reading, don't get involved with stocks. Investopedia also offers a "Stock Market Simulator", which is basically a game that simulates the real stock market. It lets you trade stocks with fake money just to see what it is like, and you can test to see if you know what you are doing or not yet. I saved up $8,000 from my first minimum-wage job before I opened my investment account, but you can likely get by on $5,000. I wouldn't start with much less than that. Don't invest in "hot tips" you hear from people, they're normally wrong. Look into the information for yourself to see if it's a stock you want to buy. Buy solid companies, don't get involved with penny stocks. If you want to cut down your risk since you will likely only have enough for 1 or 2 investments (after that the commissions will start taking a big chunk out of your gains,) I would invest into an ETF (index). It is a group of several stocks in a particular industry, so there is less risk. For example you can invest in a "Gold" ETF and own several big gold companies, or a bank ETF to own many well-known banks. The best advice I can offer is to do the reading and learn the basics for yourself though. Read the articles on investopedia.com, watch the business news on TV, ask your dad about the stock market and how it works if he invests.
What are the basic principles in investing in the stock market ?
Lots of good advice, I'll pitch in a couple more items: * Always know what you're investing in and why you're investing in it. Ask yourself, "Do I really understand what this company does? Why do I think this particular stock is the best investment for my money?" Always do your own research... don't buy because someone else gave you a great tip! * ALWAYS have an exit strategy. It's great when a stock's price rises and you double, triple, or quadruple your money. But, sometimes we're wrong and we lose money. And, other times, a stock that's done very well for a while suddenly tumbles and you lose your profit and then some. It's important to know when to sell, both to guard against excessive losses and to secure your profits on winners. * Don't make impulse decisions! Take the time to do your research. Don't get nervous about possibly missing "THE great opportunity," just know that there's never only one great stock at any one time! * Whenever possible, make use of IRAs and other retirement accounts to keep taxes from diminishing your returns.
Stock Market Game?
I think you should see what the best traders are buying and selling. This is the idea behind the site http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. Here are this month's best traders: http://www.top10traders.com/Top10Standings.aspx Good luck!