I'm gonna be 18 soon and I want to buy stocks. Can someone tell me where to start and info I should know?
- 2 weeks ago
Start by reading Jane Bryant Quinn. She is a well-respected investment analyst and author. She writes stuff particularly appropriate for the beginning investor.
- tiescoreLv 64 weeks ago
First start an online savings account, this is your emergency fund... start funding this with a portion of your paycheck. Second set your financial goals. I like to use savings accounts (separate from my emergency savings) for small or short term goals, mutual funds and robo-advisor funds like Betterment and Wealthfront for longer term goals (like your next car or your future home down payment might be longer term goals for you.) Then I have my general wealth building which includes my Roth & IRA, this is my funds to generate retirement income from. Ok now spreadsheet all this out. My wealth exploded once I started keeping track of my finances monthly. It just keeps you focused on the big picture.
OK you got a plan for your goals, your allocating to your savings, and your goals funds and your starting to allocate to your general wealth building. Open up a brokerage account at a discount brokerage like TDAmeritrade, Fidelity or Charles Schwab... the online only ones don't offer research reports. You want to learn to start reading and analyzing research reports, they rarely all agree but they are valuable. I always advise my students to start building positions in ten dividend paying blue chip stocks, the yield on them isn't important, but you want those that grow their dividend consistently. These are your lead off hitters, your high percentage on base guys. The S&P Dividend Aristocrat, & Dividend Achievers lists are a great spot to start find some companies to research further. Build your positions to a roughly equal amount, then double them. Once your there you can start adding a REIT, a well known growth stock that doesn't pay a dividend, a small cap, once you've added a few other things to your portfolio circle back around expand your initial ten to 20. I know a lot of advisors say limit your portfolio to 20 to 30 names, but I watched a 20 stock blue chip portfolio a brokerage firm created tank because it contained AIG, Enron, Worldcom and Fannie Mae. So I personally probably over diversify, but I love to do the research.
Remember this is a life long process not a get rich quick scheme, don't worry about missing out on a great stock... they are like the bus another will be along shortly. Never invest emotionally, be calm, rationale and prepared for the downswings. You'll do great, because you have the one thing I wish I had... to be doing the above at 18.
- 1 month ago
I can help you. Email me. firstname.lastname@example.org
- SteveLv 61 month ago
1. Save money to be invested in. The more the better. Many places used to require you start with at least $5,000, but that isnt so anymore. $500 is a decent amount to start with, but try to do better.
2. Look online at available online places you can trade stock with. I wouldnt try Robin Hood. Go with the better option of Ameritrade, Etrade or Schwabb. Look at what each site offers you and decide from online reviews or just info about them. I use Ameritrade which Im happy with.
3. Once you have your selection of who to trade with, start your account with them and go through the necessary steps to start your account.
4. Fund your account by linking your checking or savings account to your online trading account. It is a quick transfer usually only taking seconds.
5. Choose what stocks you wish to purchase. It is recommended to do something called diversify which means to choose different stocks often from different sectors. Read more at investopedia.com to learn more about stocks.
6. From my own experience, if you can buy 10s of thousands of shares of a particular stock, dont do it. That is going to cause you to lose your money. Just trust me on that. You will learn more about that among many other things as you go along with learning how stocks operate.
7. Form your own opinions and style of investing. Maybe what one guy tells you isnt the best for you. Take advice, but make your own decisions. Theres many different strategies out there that people take. I listened to people, but took my own path in investing and Im happy with that decision.
8. Use sites like investopedia, yahoo finance, nasdaq, morning star and zacks to help you along as well as to learn what you can. This stocks thing can be as easy or as difficult as you make it. You dont need to have a college education to do it nor must you know everything there is to know about stocks.
9. The basics to know in evaluating a stock include trailing PE/forward PE, debt, share count and analysis/analysts expectations.
10. Theres so much more to get into, but you are free to ask something more specific in here at any time. Good luck to you.
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- A.J.Lv 71 month ago
Understand the basics.
1- You need a broker. There are apps like Robinhood. You set up an account with money to start it.
2- It's gambling. Prices go up and down. If losing money is unacceptable then winning is also. It you profit on every trade, it usually means you are lucky, or not taking enough risk. The goal is getting returns (profits) equal or better than the risk of losing money.
3- You need first to decide a method to choose what to do. Some people work with price curves of prices changing of stocks to get direction. Some work with the company that the stock represents ownership of. Some people do their own analysis and some look for recommendations. Some work with buying and selling stocks and others with Options and short selling or mutual funds and ETFs.
4- Before you start, you will need to understand more either by reading a book or speaking with someone trading stocks. Answers get too big here. I'm trying to keep this short.
5- You need to have plans for selling what you buy. When to sell is as difficult as finding what to buy. The profit or loss is when you sell. It is taxable in many places including USA.
6- You decide on your general holding time view of shares. Day trade? weeks, months, years?
7- Stocks are listed on exchanges. Know the differences between NASDAQ, NYSE, pink sheets over the counter, and ADRs and other country exchanges. The rules of each are a little different.
Enough for now.
- οικοςLv 71 month ago
Start with something conservative and let the stock grow. I did quite well with what is now Essential Utilities (WTRG), buying a DRP plan from the company itself, although that was not my first stock.
- Elaine MLv 71 month ago
Check the books on the subject at the library.