Ok, stock help?

Question

ok, I'm confused about stocks, the stock market, investing, and trading, buying, and selling stocks altogether. Also what is a mutual fund, and is it a wise investment choice? Do I need to higher a broker? And if so, how do you pick a broker and what firm should you pick one from? And is investing too risky? Do people lose their money all the time? And can you prevent this from happening? What i'm 14 and I really want to invest when I'm older and trade stocks and be successful at that. I'm not doing that for a living, but I would like to make extra cash for later with that. Could you please dumb it down for me. I'm stock stupid, haha. So if you could please explain everything I mentioned above that I don't know, that would be great. I've googled it, and tried to figure it out, but as you can obviously tell, I'm not getting it. Thank-You. I know I have a lot of questions(sorry) but if your an expert with this, please, I need your expertise! Thanks!

Answer 1

yeah it's kinda hard to give a quick and short answer but if you go with a mutual fund, you don't need a broker. Choose a mutual fund company and ask them for a prospectus. They will send you some info and then you can read it and see how it works. You lose money only when you buy high and sell low. Always buy low and then sell at a higher price to make money.