Teenagers... What do you think of the stock market?

Question

I'm 15 years old and i was thinking about the stock market do u think it a good idea or should i waite?

Answer 1

It is awesome that, at such a young age, you are already thinking about and planning your investment.  The earlier you start, the better.  

As a starter to see where the market currently stands, start reading the Investor's Business Daily (IBD) and Wall Street Journal at least every other day.  And watch PBS Nightly Business Report (NBR) every evening.  Go to your local library's business section and read up on the basics of financial investment.  The IBD, Wall Street, and NBR are THE most current, updated sources of investment and business info----far better than any Business Week, Fortune, or other weekly business magazines, which are not as up-to-date as the daily reports.

As for my personal recommendations, I'd say invest for the long term instead of playing Speculation.  Long-term investment is buying to gain profit from dividends or interest.  And Speculation is, essentially, a "bet" on the fluctuation in price of a certain stock, bond, currency, derivative, or commodity:  you buy for the short term, betting on how soon and how fast the price will go up or down, and sell to make a profit.

Here's a comprehensive explanation on Speculation:

http://en.wikipedia.org/wiki/Speculation

As for stock recommendations, given the current mess the economy is in, the type of Blue Chip stocks (the most stable companies) you consider for long-term investment should be toward the healthcare and pharmaceutical sector, namely the Big Pharma companies, such as, but not limited to:

----Johnson & Johnson

----Merck (they've recently bought out some smaller pharmaceutical companies, so they have great potential)

----Pfizer (although they have been facing some major lawsuits that drove their prices down a bit, which makes it a good buy now, when the price is lower, as they're still a solid company)

----GlaxoSmithKline

----AstraZeneca

----Proctor & Gamble

----Bristol-Meyers Squibb

Also read up on the business section of your local newspaper.  For example, if you notice the significant drop in house prices in a specific local area, such as where the upper middle class families live, that will alert you to some major changes, either in income or job loss.  And that will affect the business profits: if most people can no longer afford housing, they can't afford extra luxury goods and products, which, in turn, will also drive down the stock prices of the companies that make those products.  Even the Coupons section can help alert you to the possibilities of why Proctor & Gamble or Johnson & Johnson are suddenly putting out sooo many coupons of cosmetics, personal hygiene, or OTC products.  It's these type of SMALL "news" that will tell you the truth about where the current market stands, not necessarily what they broadcast on TV news, as those "experts" always have their personal agendas to insist that the market "is not that bad," or "the company is still doing well."

And lastly, skip the financial sector altogether, as they're the cause of our current economic crisis.  The numbers haven't even hit rock bottom yet.  If you want to invest in the financial institutions, give it another 6-9 months before you buy.

Answer 2

i think you should wait. its too early in life.

maybe read some books on the subject.

Answer 3

Your never too young to be thinking about the stock market, and it's an excellent idea if you follow through learning about it.

I started when I was 12, and by the time I was 15 I was trading.

Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.

Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki

Then try some of these

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by  William O’Neil

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners.

Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

http://www.investorshub.com/  http://www.1source4stocks.com/



Visit some of the more professional websites like Zacks - http://www.zacks.com/

Smart Money - http://www.smartmoney.com/  Schaeffer’s – http://www.schaeffersresearch.com/

Some of these web sites will have advertisers who are worth looking into also.  And remember, if they offer free information, get it.

Don't ever let anyone ever tell you that you're too young or you should not be investing.

Good luck, go for it, don't let anybody stop you

Answer 4

Never too early.  Get a basic book to read or read a tutorial on investopedia.com so you know some of the basics, and decide if it is something you are interested in now.  You could always put a bit of money away in an index fund or something, although if you start before 18 (or whatever age of majority in your state), you will have to do it with your parents.

I'm an 18 year old trader, and I love the markets.  Good luck.

Answer 5

You're never too young to start to learn about money management and  investing.

PS You do not want to learn about investing from teenagers or from people who have no experience. You want to listen to lots of people (10-15+ years experience), and develop your sense of what is happening.

"The market is always telling a story" is an old adage. You want to learn what is the current story being told, as it changes often. The people who understand this tend to make money, the people who do not, tend to lose money.