Investing...

[Bookworm]

http://www.sharebuilder.com im not completly new to investing online, I have never done it but whant to im 15 I have a bank account and credit card am I alloud to invest in stocks?

[Se7enFi5e]

When I was 16 (im 19 now) I bought my first share through sharebuilder...but u know when you decide to sell it they charge extra (I believe 24.99$, but dont quote me on that, as opposed to $4 for buying it)...If you plan to hold on to that share for a long time then its ok otherwise I recommend scottrade...but st has a minimum requirement about $500...any idea on how much you want to invest (dont recommend too much since it will be your first real purchase. I dont remember if you need a credit card or not but I dont think so. You need to transfer money into your account from your bank and use that to buy/sell, etc.

On a side note its nice to see you starting early..the earlier the better

[Edit: its $15.95...heres the link..you might want to do a google search for "discount online brokers" and look at each's fee schedule..it will let you know how much they charge for everything..hope this helps]
http://www.sharebuilder.com/sharebui...s/Default.aspx

[Mad Muppet]

how much can you expect to earn from investments? better than a bank savers account?

[Se7enFi5e]

Yes on average thats true. The stock market outperforms bonds, savings accounts, CD's or basically any other investment vehicle over the long run. But its not as simple as investing in any stock..some of them go bankrupt..some reach sky high. A good average return for stocks (yearly) is 10% and 15% is considered really good...and there are some people who are actually able to get way more than that..for example if you invested $10,000 in apple on 11/29/2002 the market value of your investment would be worth over $115,744.80 today while other companies might have wiped out your entire investment (either extreme is unlikely although you may improve your return by practice and patience and make those phenomenal results possible)..its all about taking calculated risks but historically speaking stocks are the best investment over the long run if done so with proper knowledge of the market. Im still reading and learning about investment philosophies of some of the greatest investors to have ever lived (benjamin graham, warren buffett, peter lynch). If you want to learn too I suggest buying this book or going to your local library: the intelligent investor by benjamin graham (warren buffett actually learned from his book when he was about my age..this is one of his favorite investment books). Another good one is beating the street by peter lynch. Remember when it comes to the stock market, knowledge is power so you have to really know the companies you invest in by doing as much research as possbile (dont just bet on any corporation that you might have a hunch on). Another good option for us teenagers that are still learning is to invest is a mutual fund. Investors pool their money and give it to managers who then take a fee and invest in companies that they think are good (these people are professionals and returns of 10-15% are quite common so it beats savings accounts by a long shot). Usually mutual funds have a minimum amount that you have to invest (about 1000-2500-10,000) so you should save up your money first and then try to find a good fund..But remember even though these funds are managed by pro's they are still risky and people still do lose money..learn for yourself..you will know that it is a good investment when you take calculated risks!

"If you had invested $1 in small-company stocks in 1925, your dollar would have grown to $6,402 by the end of the year 2000, for an annual return of 12.4%. The second-place investment was large-company stocks; if you'd invested $1 there, it would now be worth $2,587, and you would have earned 11% per year.
Long-term government bonds took third-place. A $1 investment there would have earned 5.3% annually and would have grown to $49 at the end of the year 2000. U.S. Treasury bills came in last, only earning $17 by the end of the year 2000, for an annual return of 3.8%."
Remember bigger risk= bigger potential reward
Source: http://googolplex.cuna.org/12433/cno...tml?doc_id=556...has other information that might help you get started on learning about stocks, etc.

Sorry for the long post but once you get hooked on the stock market you cant stop..but remember do your research, learn about it before making any serious large investment. My first share bought was starbucks...i bought only a $100 worth..got a cool 30% profit in about three months and sold it..although the brokerage fees ate up my profit (because i invested so little) it was an enjoyable experience!

[Se7enFi5e]

http://www.sharebuilder.com im not completly new to investing online, I have never done it but whant to im 15 I have a bank account and credit card am I alloud to invest in stocks?

I forgot to include..when you open your sharebuilder account you will probably have a custodial account..have a parent or a guardian help you open the account as you have not reached the age of majority in your state (I presume..its 18 in all of them I believe). Then when you turn 18 you can have it transfered to an individual account.

Click here and click on learn more under each account to see what you need:
https://www.sharebuilder.com/sharebu...p/Default.aspx

[Bookworm]

thank you for your advice and help everyone

[AlexShelton]

Hey i'm in Uk wanting to invest in shares, anyone reccomend a good service to buy them with?

also how much do you think someone should start off with as an average amount?

Thanks
Alex

[Jason G]

Se7enFi5e,


Exactly post.

[Se7enFi5e]

Hey i'm in Uk wanting to invest in shares, anyone reccomend a good service to buy them with?

also how much do you think someone should start off with as an average amount?

Thanks
Alex

Are you trying to invest in UK or US shares? I'm not familiar with how to invest if you live in another country but maybe someone else here can share their insight.

As for the question of how much you start off with...only YOU know this..you should consider your age, financial condition (do you have lots of cash just lying around?) if not dont worry..just wait until you start your career and then you can start off investing once you get a steady stream of income. People usually recommend that you invest only the amount which, in case you lost it completely, wouldnt affect you that much..just invest the amount that you can afford to lose...and dont invest until you gain some understanding of the stock market! Best way to do this is to read books and research online on how to invest intelligently!

[AlexShelton]

Thanks .

Well i've just started my off my career

I think i know how much i would like to invest and it would be in UK shares or possibly in Currency.

I would love to speak more about the subject with you , would that be possible?

Much appreciated

Alex

ps . personal email : alexshelton90@hotmail.co.uk

[Se7enFi5e]

Sure...but a word of advice..NEVER invest in currencies (also known as forex trading) I have tried it (virtually, as in with fake money) and to tell you the truth it is extremely volatile..it is best left for the professionals who have years and years experience and education about currencies..stocks are a little volatile but over the long run they are good...nice risk to profit chances with them..so stick with stocks..or a mixture of stocks with bonds. I think the best option for you is to invest in mutual funds since investing in individual stocks is risky if you dont know much about it..im not aware whether or not UK has mutual funds or how to invest in them..but mutual funds have benefit over stocks: 1) professional management 2) diversification.
Professional Management: You want good experienced managers. Find funds with good managers and minimal fees as they cut into your profits. (self-explanatory).
Diversification: You dont want to invest in stocks in just one company or even one industry or sector (dont put all your eggs in one basket)..its a good idea to increase the exposure to different sectors of the economy to insure that the risk is minimized and the potential return is still high. I think the best way for us amateur investors is to invest in a mutual fund as they invest in different stocks but you have to be careful...some funds invest in just real estate (also called REIT mutual funds) or some other specific sector or industry. But some invest in all stocks..its up to you to decide.

I would recommend doing your own research on whether or not you can invest in mutual funds in the UK..just my opinion that its the best option for you..you might want to get in touch with a certified financial planner (im just 19 im not an expert so you might want some professional help but im willing to talk to you about it)

[Edit: PM me for my personal E-mail address and we can talk over email if you like]

[Edit 2: After some preliminary research it seems that the UK does have mutual funds (just as i suspected..its highly unlikely that any industrialized or developing country that has a stock market not have one of these )

[AlexShelton]

good man! i'll pm you

[varun43in]

Thank you so much Se7enFi5e for the info you provided!

[Sam Barona]

Forex is risky, but returns are much higher than on the stock market, which compensates for the risk.

In what you invest is entirely your desicion, which is largely dependant upon your risk profile. If you like minimum risk with equitable return, then look at bonds, or high interest savings accounts; if you like medium-low risk with medium-low yields, then look at high caps (FTSE 100 companies in the UK); if you like high returns and high risk, then Forex is the baby, or perhaps other financial derivatives.

I can speak about Forex as I used to be a Forex broker, so I can tell you, for expamle that it is the most fluid market in the world, thus, fluctuations happen very quickly and can be very large. This is why most Forex trading happens in what is called the Spot market (buying on the spot, if you like). This means that once you put your money into the market, you need to glue your self to the news, the stats and the charts of the currencies that you're trading. You would become what many call a Day Trader. Most Day Traders lose their money faster than they would have liked to because the market moves very fast and most just dont know when to buy or when to sell.

I used to read the financial reports early in the morning (before the market opened, and then, literally, hand over decision making on buying and selling to my experience and intuition. A fraction of a second could make you rich, or break you, so there is no time for indecision. Only gamble (speculate) with funds that you dont mind losing. If you can do this, then you wont hit the wall if the market takes a turn against you.

There are also certain automated features that you can place in order to protect you/assist you with your trading; like stop loss accounts, that sell your currencies immediately if the market hits a certain point that you dont want to be exposed to; however, if the market bounces back, then you sold at a loss.

Its a very exciting market to be involved in, and one that is used by most financial institutions to add higher yields to their portfolio (Interbank).

Trust this helps.

Please be mindfull that I am no longer licensed to provide financial advise, so this is in no way to be taken as a recommendation for you to manage your investments. These decisions are completely yours, as is the risk associated with them.

CMC Plc have some great online trading products, and I do believe that they now also offer stock trading as well. Do a search for them online, they are the only company in this field that I would personally recommend. I have seen many others going belly up and taking their investors money with them.

Sam

[akula]

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