Teen Investor?


Question:
I'm a 16 year old kid interested in investing. I was previously thinking about starting a business and a few online ventures, but I feel that investing may be a better route for me.

I've read many business books and one stock book dedicated to teens. Should I meet with a local stock broker to learn more information? I don't have alot of money - less than 2k in my account. Would penny stocks in NASDAQ, OTCBB and Pink Sheets be a good fit for me?

Thank you.

Answer:
Penny stocks cost pennies for a reason. If you're very limited in your resources, you may want to look at buying a tracking stock like QQQQ or one that tracks the Dow 30. Your investment will grow with the market. Many investors cannot beat the market. A lot of people want to get rich quick off the pennies, It is VERY hard to do. If you have your heart on trading stocks, check out the Motley Fool. They are cheerleaders sometimes but, you'll get some good strategies for investment. My best resource for stocks is The investors Business Daily. Pick up a Monday Edition of the IBD to give you some ideas on stocks. Still having said that, you should go the safer route of tracking stocks.
i suggest you wait a couple years like till 18 get a part time job (even ice-cream places pay good! like cold stone) and save the money to bt a better stock when you r 18. talk to your parents its a hard task

good luck!!
Penny stocks are not worth buying, and with that little cash you should only consider investing it into RRSP or buying short term Bonds, this way you'll be sure that you are going to make some cash and not lose anything. When you collect more money, say 10,000 then you can get into investing on the stock market, but I would suggest a stock brocker option or do it yourself with ETrade

http://www.crtindex.com/ - Best online source for Canadian Retail and Trade companies.
I suggest you begin investing now if you have extra cash sitting around. Why start a business when you can basically own one run by pros? Id stay away from penny stocks at least until you get experience. I suggest you get an aggressive mutual index fund through Vanguard. After you some experince there then move on to stocks...Watch Mad Money on cnbc to learn stocks while your waiting..
More Questions & Answers...
  • Rat owner/enthusiests/lovers question?
  • Do I need to report income on a 1099-B form?
  • Do historical stock market returns account for dividends (which is a form of return) or just stock prices?
  • How are stocks held in joint account divided for stepped-up basis upon death of spouse?
  • Do u really need to be knowledable to trade in stock?
  • What is drip and how do i know if that stock, etf, or mutual fund is drip or not?
  • If I cancel my sharebuilder account will it affect my credit?
  • I am looking for a stock broker that lets me trade on international exchanges from one account?
  • The questions and answers post by the user, for information only, AnswersRoom.com does not guarantee the right
    Copyright © 2007 AnswersRoom.com -   Terms of Use -   Contact us

    Hot Topic