1. Your Questions About How To Invest In Stocks As A
Teenager
Mary asks…
How can I start to invest and understand stocks as a teenager?
Hi! I am fourteen years old, and I am interested in buying and trading stocks, and how to
understand the market and all of the terms. I always find myself looking at stocks for
companies that I am interested in, mostly computer manufactures such as Apple, Google,
Microsoft, HP, Sony, Microsoft etc. I am interested in how much money I would need to invest
and also how to understand any of the market terms. Are there any guides, or books that would
help me understand any of this? I could family friends I know that are stock brokers and
involved in that industry but I would like to have a general understanding first. Thank you !
Steve Winston answers:
Great question. I like Joe's answer below, too. Here's my usual response:
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.
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
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2. 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.
Ruth asks…
How to invest in the stock market as a teen.?
How do I and where do I invest in the stock market as a teenager im a 15 year old boy and
want to invest in the stock market. Thank you.
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3. Steve Winston answers:
You will need your parents to agree to open a custodial account so you can trade stocks. You
have to be 18 to 21 to legally sign contracts. A discount broker will be the best place to start
after you do lots of research. Read books, consider joining a teen investment club in your area,
watch CNBC.
Chris asks…
How do I learn the Stock Market as a teenager?
I am a high school junior who wants to learn and invest in the stock market. My dad is willing to
give me 10K to invest once I learn. How do I learn and get good at trading?
Steve Winston answers:
Start reading books like Investing 101. Hope that helps bud.
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4. Laura asks…
How to start investing as a teenager?
I am 14 years old and I want to start investing into something. My parents said just pick what
you want and they'd go along with it. I don't know where to start. There are stocks, bonds, CDs,
etc. Can you recommend anything? I only have about $250 and it should be short term, say
under 3 or 4 years. So, considering my situation, what fund will be best suited for me?
Thanks in advance.
Steve Winston answers:
As above you need more learning before committing money.
Go to library (free)
Read all of the finance magazines they have (free)
Select your favorite (free)
Go to circulation desk and get the last year of your favorite magazine (free)
Read all of those (free)
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5. Go to Yahoo finance and set up a portfolio with $100k (free)
Select several stock for several different reasons following the advice in your now favorite
magazine (free)
Write down why you selected each stock or ETF (such as low P/E, high growth, sector in favor)
(free)
After one year, determine which of your strategies has worked best (free)
Make a new selection based on your work and at this point consider committing money (not
free)
Most of the above is learning. Most of the above is free. Most of the above take effort. Before
committing money to anything you need to learn about it.
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