Oct-31st-2009
im 18 years old, and i would like to learn how to invest in stocks?
I am completely new to this…… i would like to know if someone can help me with this…… can someone help me out and give me some tips on wat can i invest in…..and i also would like to know what are the risks in ivesting in stocks
You are very young, and congratulations on having the keen sight to start investing.
At your young age, you should think long-term. Let the magic of compound interest, dollar cost averaging and dividend reinvestment work in your favor.
Your first option, should be to open a retirement account. This is always a good investment, regardless
of who you are.
If you have fully funded your retirement account and would like other options, you should consider a DRIP Plan.
They are seldom recommended by brokers due to the low rate of commissions received. However, these
reinvestment plans can be very powerful long-term investment. Studies have shown that DRIP’s are one of
the best strategies on Wall Street.
They are inexpensive and easy to start. New investors to the stock market should definitely consider a DRIP Plan.
Companies like Toyota, Royal Canadian Bank, Sony, Bank of America, General Electric and many other Blue Chip
Stocks can be purchased through your DRIP Plan, with as little as 1 share in most cases.
These long-term plans are great for beginners as well as veterans. Check them out.
Look at all suggestions closely before making a decision. Ask your parents advice also.
I would suggest Sharebuilder.com they have many different ways to invest and can help you decide on what to invest. I would never give a tip on an investment or take a tip usually if you are getting a tip it means someone has something to sale "kinda like a used car salesman". Books however can be your best friend I would read any I could get from Jim Cramer he is strange but his thinking is very sound, also look for information on Warren Buffett he is a good person to study. Risks in investing are simple you loose money on fee’s and can loose money if your company’s stock drops and stays down. Most of all do not panic if you take a loss this will happen but you can recover.
Read "Wall Street: Another Las Vegas" by Nicolas Darvas. I can’t recommend it enough.
All investments are a risk from minimal to high depending on the type of return you are seeking. I get a newsletter from a gentleman named William, You can reach him at bill67co@aol.com Ask him about his newsletter. He has two advisor’s who are the top in the field and are 90% accurate in penny stock picks. Most double in a day to a week write him to find out more.