What is the best way for a teenager to start investing? Stocks? Bonds? CDs? ...?

Question

evan_cs, how is that supposed to answer my question?

Answer 1

A good way to get started when you have very little money to invest is to put money into a no load mutual fund or into an ETF. This gives the diversification of a larger portfolio while limiting transaction costs, which can seriously eat returns for low dollar investments. Mutual funds may require a minimum investment, such as $2000, while ETF's have no such requirements. Recommend you research these options.

Answer 2

Stock market has the best return always  for years.

CD,AND BOND HAS A VERY LOW RETURN.

due to your age you can start  invest in higher -risky stocks

but avoid Penney stocks and junk stocks.

  as example you could start buying  some banking stocks like BAC,WFC,AND MER.

you will be happy with these investment in next 3yr-5yr

MY BEST WISHES TO YOU IN YOUR INVESTMENT.

Answer 3

It depends on whether you can stomach losses or not.  Stocks can be purchased with relatively small amounts of money, and there are a few brokers out there that do not charge a commission, ie zecco.com

If you can't stomach losing money, or fluctuations, stick with savings and CD's.  Your bank can help you do that.

Answer 4

Investment and investments. Stocks are pretty much gambling but just in a different form.

Answer 5

You should start with stocks BUT

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. If any site offers free information, take it.

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.

Get a good feel for the market in general, if you spend some time on MSN a check out all the tabs you will learn alot.

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest. Good luck on your journey

Answer 6

Have you tried commodity market. It presents a great opportunity to make money. It allows you to trade 20 times more the amount you invest and that helps you to make more money.

Answer 7

There are loads and loads of ways to invest, but with the recent performance of the stock market, and with interest rates being raised (on loans) I would personally look into investing in precious metals (solid gold and silver coins/bars)

Over the past few years they have out performed quite a number of other investments. The main thing with Gold and Silver is that the weaker the dollar becomes, the higher the price they command. If you don't believe me, check out the dollar buying power over the last few years vs. the performance of PMs.

Granted gold bullion may be a little out of your price range, but silver should still be well within your grasp. You should be able to walk into any Coin Shop and walk away with 1 troy ounce coins for around $20-21 each (this is keeping in mind current spot price which is about $18ish)

Answer 8

Of course, Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in.

Fund manager who is responsible for your investment can purchase stocks or bonds with much lower trading costs than if they tried to do it on your own.

When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.

Be a smarter investor and let the expert make money for you..

Answer 9

The best way to start invest is into Mutual fund. The fund manager will do the job for you.

Stock is too risky, any uncertain outcome may lose all you stakes.

Bonds are basically a chance for you to lend your money to the government or a company and you receive interest . Not a good time to invest in bond when inflation rate is high as you might at loss too.

CD return is too slow.

Answer 10

It depends on the risk you are willing to take and the amount of years you are going to invest.

Stocks would be my choice for teenagers since they provide the best return rate.

Answer 11

cd's probably