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I'm currently 17, turning 18 in one month. During this time I want to catch on everything related to stocks-books and that a lot, including these forums. I was wondering if you guys could give tips to a newbie like me. I only have $500 worth to invest. I just have a few questions, wouldn't taking advantage of the pump and dump scheme for penny stocks BEFORE it happens be super beneficial? What should I do to maximally increase my profits with an extremely low starting investing point? I've been reading these forums and half the time I don't know the words you guys are typing..
I'm currently 17, turning 18 in one month. During this time I want to catch on everything related to stocks-books and that a lot, including these forums. I was wondering if you guys could give tips to a newbie like me. I only have $500 worth to invest. I just have a few questions, wouldn't taking advantage of the pump and dump scheme for penny stocks BEFORE it happens be super beneficial? What should I do to maximally increase my profits with an extremely low starting investing point? I've been reading these forums and half the time I don't know the words you guys are typing..
Wealth is gained the slow and gradual way. Not by gambling with penny stocks. How would you find out about pump and dumps BEFORE the mailers get sent out anyway unless you knew the con artists running the scheme?
Wealth is gained the slow and gradual way. Not by gambling with penny stocks. How would you find out about pump and dumps BEFORE the mailers get sent out anyway unless you knew the con artists running the scheme?
Hmm I originally figured I'd buy stocks in a potentially profitable company BUT I don't know how people find these companies. Should I be investing in multiple companies for a higher rate of success? How do people even get started in investing?
My only suggestion would be to not invest money you might need for the short term. I learned that the hard way.
$500 is great for your age... But it's not really enough to invest at the moment. You don't want to gamble with your money on penny stocks. For the time being just keep it in a savings account.
It's good that you're already thinking about this, but you've got several steps ahead before you get started. Get more education keeping an eye towards getting a job, get that job, earn income. Keep living expenses to a minimum. When you're at the point where your income exceeds your expenses, and you have a cushion of maybe six months living expenses in liquid savings, then you can start setting money aside to invest.
I think most people here started in their 20s and 30s. I started after I got my first job with a retirement plan.
After getting a good education, always remember that the common denominator of success is forming the habit of doing the things unsuccessful people are not willing to do.
My only suggestion would be to not invest money you might need for the short term. I learned that the hard way.
$500 is great for your age... But it's not really enough to invest at the moment. You don't want to gamble with your money on penny stocks. For the time being just keep it in a savings account.
It's good that you're already thinking about this, but you've got several steps ahead before you get started. Get more education keeping an eye towards getting a job, get that job, earn income. Keep living expenses to a minimum. When you're at the point where your income exceeds your expenses, and you have a cushion of maybe six months living expenses in liquid savings, then you can start setting money aside to invest.
I think most people here started in their 20s and 30s. I started after I got my first job with a retirement plan.
^^This^^
The only thing I would tweak is I'd say it's not absolutely necessary to wait until you have 6 months' living expenses before you start investing if you are young.
But if $500 is all you have saved (can't tell by your post), then you really should keep it in a savings account. I'd say, save $1000 in a savings account and then split any additional savings between investing and adding to the savings account.
I also don't recommend individual stocks. There are literally millions of other people out there analyzing stocks. Many do it full time for a living, and have had years of training. Don't think your abilities are anything special because the odds are very high that they're not.
Pick a good mutual fund and let it do the picking for you.
A fund like Amana Growth might be good for you. It has a $250 minimum, much lower than other funds. It also has good long term performance.
Jrohazn, I also think you should read Mr. Money Mustache. He teaches people the correct way to get rich. While compounding of your investments is important, it is NOT the most important factor. It's the percentage of your income that you save. Aim for a 50% to 70% savings rate, and you won't need huge compounding to become rich.
The only thing I would tweak is I'd say it's not absolutely necessary to wait until you have 6 months' living expenses before you start investing if you are young.
But if $500 is all you have saved (can't tell by your post), then you really should keep it in a savings account. I'd say, save $1000 in a savings account and then split any additional savings between investing and adding to the savings account.
I also don't recommend individual stocks. There are literally millions of other people out there analyzing stocks. Many do it full time for a living, and have had years of training. Don't think your abilities are anything special because the odds are very high that they're not.
Pick a good mutual fund and let it do the picking for you.
A fund like Amana Growth might be good for you. It has a $250 minimum, much lower than other funds. It also has good long term performance.
Jrohazn, I also think you should read Mr. Money Mustache. He teaches people the correct way to get rich. While compounding of your investments is important, it is NOT the most important factor. It's the percentage of your income that you save. Aim for a 50% to 70% savings rate, and you won't need huge compounding to become rich.
I read the blog but I'm slightly confused. He's telling me to save more than half of my income but doesnt that include HOW much money you make? Have you had any success with following this?
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