Thoughts?

[Wickaboag]

Hey All, Wicka here.
First time looking seriously into stocks, I'm only 16, so my mom will be the name on the account. I'm just looking to get a few cheap ones, and hope for the best, maybe a $50 spending limit. I know this doesn't sound like a lot, I know, but I just want to dip my toes into the water slowly. Any advice on websites? Information I should know? I do accept Private Messages with tips Lol.
Hope to hear from some of ya'll soon!
Thanks a ton,
Wickaboag

 

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[junkless]

Check out sprint for a cheap in. Drop about $50 and ride it til next year this time. If it doesn't rise substantially dump it no matter where its at. They will be rolling out new tech in 13 and might raise a somewhat sinking ship

 

[Wickaboag]

out of the 35 people who read this, one finally comments :P
Thanks for the tip!
Wicka

 

[junkless]

Or just buy silver when it hits $25 or below

 

[Wickaboag]

Or just buy silver when it hits $25 or below

That's what I'm thinking, $25-27 will be my buy point.
Thanks again,
Wickaboag

 

[FCCDFEd]

You can also try the penny stocks, not as much risk or gain but a good way to learn to research and learn.

 

[Red James Cash]

I wouldnt touch stocks with a mile long pole

 

[Wickaboag]

I think I'm going to keep studying and pretend investing with pretend amounts. Lol.

 

[Red James Cash]

Smart move

 

[1more4me]

Wicka,
It is awesome to see a 16 yr old interested in stock or investments of any sort! I'm a semi-dedicated trader and I, like you made my first purchase at 16 too. KSU railroad in 1985. I long ago sold that stock but it made a pile of money in the 15 years I had it.

Though investment advice should always be taken with a grain of salt -and only- ONLY- made on YOUR decision to buy it after plenty of research- I will offer you a couple tips I think are fair. (For a LONG TERM, Set it and forget it- till retirement type plan)

1) Only buy a stock related to a product or service you have personal positive experience with. Example- Coke, Walmart, SIRIus Radio, etc. Your personal connection always gives you a feel of the future for the brands continued success. (I used to watch KSU trains pass my house 4-5 times a day and knew folks that worked for them.)
2) Try to find a stock in the $5-10 range. Considering numbers only- There is a natural tendency to increase toward $100 but conversely after $100 without splits or spin offs they tend to grow much slower. (Example- a 100% increase on a $5.00 stock is $10.00--- a $100 stock must reach $200 for the same gain. APPL - from $500 to $1000 per share or Ford from $14 to $28. Ford seems much more doable right?)
3) Don't buy a stock based on popularity in the news- especially the market news- buy it on your belief that it will be around in 25-30 years. (example FCX Freeport McMoran and SCCO Southern Copper- they mine copper and gold- there will likely always be a demand for both and even a failure of mines and management would end in a buyout by another company.)
4) Diversify- even if you have little to start with- look for stocks in different sectors, US and Global, big and small, then since you are so young- put 75% of your new money in solid stocks and 25% in more risky and more volatile stocks with potential to have some explosive gains (or losses...)
5) NEVER EVER FORGET-- the markets are designed to separate You from Your money!
6) Look up a few good books on Fundamentals- NOT the crazy schemes.
7) Don't buy on a great day- When you hear everyone crying about the market crash- oh my, the DOW is down 250 points- go in that day and Buy!
8) Try to find one in your price range that pays (and has always paid) a good dividend- They add up in time!

There are plenty more -but those are some good starters. Open an Etrade or Fidelity account and get after it!.
PEACE and GREEN TRADES!

 

[Phanntom]

I'll second pretty much what 1more4me said. I don't disagree with any of it, but would add a bit of my own take on things. I also commend you on your interest at your young age in investing, though I am seeing more young people expressing interest. My granddaughter has always been a saver but got frustrated last year when she finally paid attention to what the bank was paying her for her money and asked me to help her with a portfolio, so much of my advice is the same I gave her. She finished the year up 14.8%, much better than the 1/4% the bank was paying her.

First learn the difference between 2 terms you'll hear constantly...."trading" and "investing". Both are valid terms and vocations. Traders are constantly buying and selling stocks (trading) happy with small gains on each trade. In theory, if you make just 1% on a trade each day (assuming a 365-day year), your portfolio would've grown by more than 365% when compounded. At 16 you don't want to be a trader...it's a lightning fast environment with a lot of risk. It's all based on news and rumor, and by the time you as the small individual investor hears the news, it's already ancient history to the experienced traders...you'll always be behind the curve. In the movie Wall St. you may remember the conversation when Michael Douglas' character tells him it's information that will make him valuable...accurate information before anyone else has it. When Charlie Sheen's character tells him of some "news", he makes the comment that it's not news....it's already history. So forget "trading".

The other position is investing. Investing deals with a longer term approach and at 16, you have a long term to deal with. This is where my advice is focused with my granddaughter...at 20...she like you has a long time to work toward an early, comfortable retirement. In assisting her, we set a target for her portfolio of trying to hit a 15% return each year. Why 15%? No real reason other than an investment (of any amount) with a 15% return, compounded will double every 4 yrs 8 months. So, if you invest $100 in Jan of 2013, in Aug of 2017 your $100 is now worth $200. That other $100 you didn't have to work for. It's called the Rule of 72, LEARN IT. In effect you can use it to determine how much time it will take for an investment to double in value given the return and time. The formula is simply 72 divided by the rate of return...in the case of my granddaughters portfolio...she began with $12k she took from her savings and opened a brokerage acc't with last Jan. While we came in just a tick short of our goal, she didn't do bad. So if we assume we'll only manage 14.8% over the time, we divide 72 by 14.8 and it means her 12K will be 24k in Sept of 2017 rather than Aug...that 2-tenths of a point means an extra month to double her investment. There are other "Rules" that use a different number than 72 but I've always found that one to be pretty good for my purposes.

Probably the best overall advice I can give you is STAY OUT OF DEBT!!!!! Ask yourself....who resides in the larger building, you or your bank? Ninety percent of Americans could be wealthy....the other 10% it will never happen for because they'd rather let the gov't take care of them. But that 90%, have the capacity to become wealthy....all it takes is a job....IF, YOU DON'T HAVE DEBT TO SERVICE. As I said, my granddaughter has always been a saver....so far, she has no debt....she's working two jobs while attending college full-time...one to pay for college, the other a part-time job to keep building her savings. Her parents thankfully have the capacity to help her out if need be, and they do with small stuff, but she resolved to do it herself...more power to her. Too many young people are coming out of college with minimal job prospects and a mountain of school loan debt...avoid it if at all possible.
I'm going to end this here and prepare a private email....it's going to be too long for the boards here and boring to most....I'll keep a copy of the email so I can send it to anyone else interested....I'll probably send it tonight or the morning.