Im intrested in investment?

Question

Now, im only 16 and have 500 dollars that i would like to invest into something , lets say stocks or something like that and make money.

what would be the best thing for me to do with this money to make more money?

Answer 1

Here's an original idea for you...I just hope it isn't too far off base for you. If you're interested in the stock market and want to increase your wealth position, stop limiting yourself by thinking about buying into stocks and put yourself into a secure financial position prior to taking that kind of gamble.

If you wanted to invest $500 in the stock market, even on a good company, you would still probably pay a modest broker's fee, then if your stock increased, you would pay another broker's fee to sell or diversify. However, I've heard that the best investment is in yourself, so take what you would spend now on broker's fees and buy a couple of books about stock market investing. Then hold onto your remaining cash.

Once you secure a good "high-school student" level job, set aside a few dollars with each paycheck to help increase your $500 position. Let's say you add $30 every week to your $500 for a year...That's $1,560 additional or $2,060 saved. And no fees have been paid to anyone. You'll also be a lot closer to the legal age that you need to be in order to start trading.

For the following year, get involved with some online trading groups on myspace or yahoo groups. While you're doing this, continue to put aside your small "investment fund" for another year. Don't put the money in a bank account, remember, they charge fees also. Put your money in a safe and lock it. Add money to it as you desire, but don't take the money out. Once you've put two years worth of work into it, you'll have $3,620 saved and this can put you in a much nicer position to invest...and you'll have the added benefit of two year's "experience/knowledge" to help you work with.

Then I would advise that you take some of that money and buy small valuable goods that can easily be sold online at ebay or craigslist or something for about six months. Don't buy anything that would not give you double what you paid for it and don't buy anything in bulk. Take the profits from those investments and allocate about 50% of them for your "stock portfolio"

If you just do the math on the basics here, by the age of 18 you would have $3,620 saved. If you bought $1,810 worth of stuff that you could sell for a double return, you would have a total of $5,430 set aside. And up to this point you would have paid no "fees, commissions or charges" for anything to anyone. If you take half of that money or $2,715 and put it into a good group of companies that pay a solid "dividend" of say $.50 to $2.25 per share (based on previous year's experience) regularily, you could easily see your $2,715 grow to $4,072.50 or even $8,823.75 respectively (purely fictional growth for estimation purposes) within a year. add that to the other $2,715 you've still got set aside along with the $30 a week compounded over another year and you've got a whopping $8,347.50 to $13,098.75 by the time you're 19 years old.

Multiply that growth over the next 11 years and by the time you're 30 you've got approximately $238,262.81 in your little safe and you should just about be able to buy a gallon of gas with that!!! lol...

Answer 2

don't

Answer 3

I would suggest save up your money and spend some time learning about how the stock market works.  Paper trade and when you feel comfortable start playing around with real money.

Answer 4

You can try HYIP and invest $10 to view if you like it

There are two very good Hyip like:

Angel-Capital

http://www.angel-capital.org/?affiliate=...

and Gold Empire

http://gold-empire-ltd.biz/?ref=zerohunt...

They return more o less 100% of your investment in a week

Answer 5

I would read the following books before you buy your 1st stock.

1)The Intelligent Investor

2)Security Analysis 1934 edition

3)The Interpretation of Financial Statements

All these books where written by Benjamin Graham

Answer 6

I second the CD suggestion.  It's an easy option you can sign up for at your local bank.  But I suggest a short term CD 6 months to a year.  Interest rates are low.  So no need to lock away your money when rates will probably start rising in a year or so.

I envy your position.  I wish I had taken an interest in the stock market at your age.  Since you can't buy stocks, mutual funds, or coporate bonds until your 18 (minors are permitted to buy Treasury bonds), this is a great time to start doing research.

Pick up the Dummies guide to Investing (look for it and other references at your local library).  Start learning about the markets NYSE/NASDAQ/AMEX etc.  Learn how to read financial statements.  You have time to practice.

Answer 7

First, since you are not an adult, you will probably need a parent or guardian to sign for an account for you. Some things some people try to do 'in the market' have some hazards, sometimes beyond what you put in.

Second, investing and trading are two very different things. Investing will often seem as boring as watching paint dry, but it has a purpose. If you have a purpose behind what you do with the money, beyond making more money, then that is different from stock picking as essentially a different way to gamble.

Here's my suggestion for you. Check out these links: http://www.directinvesting.com/ and http://www.businessweek.com/

The idea is simple. Read what these companies are doing and then start making lists of the things you like, somewhat understand, and feel comfortable with. In the process (don't hurry, take your time to take in the range, the scope of what is out there), start paring down the list to the things you are really, really interested in. Let one, two, at most three (considering your starting funds) be on your final list. Then go for it. But be patient, don't get greedy, if you are investing then you are planting a tree and it may take some time to produce some fruit. (By the way, the first dividend check, if your company pays dividends and you don't elect to participating in a dividend reinvestment program, DRIP, is a lot of fun, enjoy it because your tree just gave you fruit.)

Answer 8

At your age and amount, and considering what the market is currently going through, I would suggest a money market account or short term CD. Best to preserve it for now.

Most anything else would require your parents help. And lotsa homework! For practice, start a demo account, paying attention to a couple of favorite or closely familiar companies, maybe even local companies. You can start such an account with investopedia.com. Research at Investors.com.



Good luck, let me know what you find.