Stock Markets Exposed - Is investing in the stock market?

Is investing in the stock market?

I'm 16 years old, and I've been thinking of investing my savings in the stock market to make them grow. Is this a good idea? If it is, is it better to invest in expensive stocks that are almost sure to go up, or in penny stocks that are highly volatile?

Public Comments

Invest in conservative issues that pay dividendds and are relatively sure to appreciate. At your age there is no need to be aggressive or foolhardy and play volatile stocks until you can afford to. Best of luck. Use dividen reinvestment plans that don't charge broker's fees to build up your ownership of the stocks you like. It's usually just about free and an easy way to amass a fortune.
If you have savings you want to invest, you should invest them for the long term. I would invest in the well-known companies, or go for mutal funds or stocks like the S&P. That way you can diversify and minimize your risk... though at 16, you can afford to take some risks.
Until you are experienced in the stock market, you should hold some of your money in savings and invest no more than 1/3 of your money in stocks. Learn about money and investing from books at your local book store or library, investing workshops, or finance conferences. As you learn more and gain experience from your gains and losses, then you can change your investing percentages. Investing is JUST LIKE business. You need to have a plan similar to a business plan (an investing plan). I think that you should invest in both if you can. Try some penny stocks and try some growth stocks. Be willing to lose but learn from your losses. If you loose $100 or $300 in a bad stock investment, don't worry - you are still learning. The scariest thing was pushing the "buy" button. You can try sharebuilder.com or firstrade.com or some other online stock brokerage. I would also check out investing in gold and silver if you want safe investments that are expected to grow over the next 10 -12 years because of the awful rise in inflation. I suggest you read : "Rich Dad's Guide to Investing" and the "Cash flow Quadrant" by Robert Kiyosaki. These are excellent books and will teach you everything you need to know about investing and the world of money. Good Luck
You're 16. go for it! if you lose money you have plenty of time to get it back. start out with what you know. What products do you and your family use? pepsi? coke? do you shop at wal-mart? do you listen to sattelite radio? do you own a TV? do you or other family members dye thier hair? use makeup? If you use a product and think it's great. and you know that other households like yours use it too then it's a good bet that the stock will at least be stable. I invest in the company I work for. they're not going to go bankrupt anytime soon. Start out small and build as you learn how to read to stock reports and watch the ticker.. Good luck!
history shows that over the long term, investing in good smaller companies, although more volatile, provide an investor with average returns over the long term. look at the PER (price earning ratio)... the lower the PER the cheaper the stock is. This is essentially how many years it will take for the company to generate the profit to payback your investment. I would look for a company that has a relatively low PER (say less than 15x) and look back at its history and see if every year it has increased its dividend payout. These two factors should make for a good long-term investment. To explain the dividend factor. If today a company pays a 5% dividend yield, or for example a 50cent dividend on a $10 share price and has been increasing dividends by say 10% per year...if the company maintains that track record, you will be getting $3 in dividends in 20 years time or over the 20 year period a total of $28 in dividends. Assuming the stock will be offering a 5% dividend yield in 20 years time, the stock price will be at $60. So overall your investment of $10, would make $60+28=$$88.
Robert Kiyosaki is not the ultimate authority on investing, nor is Warren Buffet or any of the other idols people like to worship. You are the ultimate authority, and you need to develop your own investing style. Read widely before deciding who is right for you. Probably a composite of different views will make sense. Having said that, I'd argue for aggressive investing if you can lose some without destroying your chances for college. Biotech and alternative energy and industries we don't know about yet will have their ups and downs but probably will grow quite a bit in your lifetime. A fund or some stocks in these fields could multiply several times in 10, 20, 30 years. And if you lose it all, you'll still have time to raise more money and go more conventional. If you have some savings and are thinking about investing at 16, you're way ahead of the pack and will no doubt do well one way or another. Just don't give up over an early mistake--everyone makes them.
1) Yes. 2) Stay away from Penny Stocks. I can advice you. Top 10 Answerer in Business & Finance.