H P asked in Business & FinanceInvesting · 1 decade ago

I am 15 and want to learn how to invest and how the stock market works, any online sites/books or your advice?

Thank you, your own advice would be helpful to.

I do know the game is hard to play but I am dead set on learning how everything works... and please don't say "You have an economics/life smarts class... pay attention in there and you will know"

If you plan to say that please don't answer this question... I recieved an A in that class and did not go in-depth into the stock market/investing... if they did I would've known... I payed attention, and PLEASE don't criticize me cause of my age and saying "Your not old enough so who cares..." or something like that.

Sorry about that whole speech there (and the grammar probably wasn't great either) but I am really tired of people doing that to me.

Thanks for your input,

HP

You can also e-mail me lmohldnpg@aim.com

7 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Read Jim Cramer's Sane Investing in an Insane World. It's "Investing for Dummies" - actually it's not because I've read investing for dummies and it's AWFUL. Then, once you get an idea of where stock prices come from you can branch off.

    I don't know anything about day trading, but I've looked for books in 2 university libraries and there isn't much. Books on technical analysis ("charting") aren't that useful if you haven't seen a lot of market moves yet. The good ones use some pretty crazy math anyway.

    Fundamental analysis, using business cash flows, is much more accessible to the beginner. However, you're going to have to learn some accounting to understand what business metrics mean.

    Also, if you are really ambitious, find CFA Level I review books and learn everything in them. It's not helpful to "pick winners" but it's basically an industry test to make sure you're not a moron. A certification that says you have the tools of the trade. At 15 you almost certainly do not. It's covers SOME econ, SOME stat, SOME accounting, etc.

    I've read just about every book on this list and recommend them all to varying degrees.

    ****ABOUT INVESTMENT BANKING:

    Liar’s Poker

    Michael Lewis

    Monkey Business

    John Rolfe and Peter Troob

    When Genius Failed

    Roger Lowenstein

    Smartest Guys in the Room

    Bethany McLean and Peter Elkind

    Rogue Trader

    Nick Leeson and Edward Whitley

    Reminiscences of a Stock Operator

    Edwin Lefévre

    Goldman Sachs: The Culture of Success

    Lisa Endlich

    ****ESSENTIAL MARKET HISTORY:

    Barbarians at the Gate

    Bryan Burrough and John Helyar

    The Predators’ Ball

    Connie Bruck

    Den of Thieves

    James B. Stewart

    ***VALUE INVESTING STRATEGIES:

    One Up on Wall Street

    Peter Lynch and John Rothchild

    Beating the Street

    Peter Lynch and John Rothchild

    The Intelligent Investor

    Benjamin Graham

    You Can Be a Stock Market Genius

    Joel Greenblatt

    A Random Walk Down Wall Street

    Burton Malkiel

  • Anonymous
    1 decade ago

    The best source will be your local library, which will have access to books that will go to any level you want about economics and the role of the stock market.

    There is some good educational material offered by online finance companies - Vanguard offers some research tools, Motley Fool has an education section, and so does Bob Brinker. (Bob's a market timer, a rather specialized and sometimes frowned upon way of reading the market, but he is very successful).

    You will also find some sites that offer a means for you to run 'pretend' portfolio online. Morningstar has a portfolio tool I believe. So you can 'buy' and 'sell' stocks using their tool to track your portfolio, without actually spending (or making) any money. You might want to try that for a while.

  • Anonymous
    5 years ago

    I started investing when I was 13 i am now 15 also and the best thing for you to do is learn everything you can. One piece of advice dont invest in penny stocks.

  • 1 decade ago

    1. www.ruleoneinvestor.com

    2. http://www.berkshirehathaway.com/ (Links on the left)

    3. Go to the Library and check out The Intelligent Investor by Benjamin Graham ... It is long, but it is a classic.

    4. Borrow a copy of Rule #1 by Phil Town, it is a watered-down, but modernized version of the Intelligent Investor

    For the books, if your library doesn't have them, it may be able to do an Interlibrary Loan (ILL) - ask the reference librarian.

    These two books are long and hard to read, but if you are serious, then try to get thru them. Don't just sit down and read them. First set aside about two hours to go thru an entire book, reading the first chapter, then scanning the oter chapters, slowing down when you are interested.

    Then read the other book the same way.

    Then go back to the first book, and try to read at least 50 pages per day.

    Then go back to the second book, 50 pages per day.

    Then go listen to Jim Cramer on CNBC, and borrow his last two books from the library.

    When you finish these four books, you will understand how the stock market really works...

    Then you will have to follow a few stocks to understand how YOU work when you are investing.

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  • SWH
    Lv 6
    1 decade ago

    There are many virtual stock exchanges which allow you to open an account and buy stocks online. Initially, they give you $100,000 (not real money) which you can invest in stocks. The only reason why this is useful is because you get some experience how to buy and sell stocks.

    http://vse.marketwatch.com/Game/Homepage.aspx

    http://investor.thecheers.org/affiliates.html

    While you are getting experience, you can learn about what makes stocks go up and down. There are many books and websites that explain how to buy stocks.

    There are different strategies, and some of them tell you to do the opposite things. For example, one book might tell you to sell your stock if it goes down a little bit, and another book might say if your stock goes down, you can buy more. Don't be confused by things like that. All investment and trading strategies can be divided into two groups: Technical Analysis or Fundamental Analysis.

    Technical Analysis means people look at charts trying to figure out what the stock will do in the future by studying its past. They look at price patterns and draw trendlines. If they find a good chart, they decide to buy the stock and may keep it for a few months or a year until they sell it.

    Fundamental Analysis means people are researching facts about a company and looking into financial records to find out what the company is really worth. If they find a valuable company at a low price, they buy it and may end up holding it for 5-10 years until it goes up.

    Technical analysis and fundamental analysis are deep subjects and they both work if you learn them well. To give you an example, Warren Buffet made money by studying fundamentals. Many traders make money by studying charts.

    William O'Neil, the founder of Investors Business Daily newspaper, wrote a good book called "How to Make Money in Stocks." This book combines fundamental analysis and technical analysis and teaches that the best thing to do is to use both strategies together. I am sure, you can find this book in libraries, and you may read it if you are interested.

    The Investors Business Daily newspaper (IBD) contains a very long list of stocks, and beside every stock, you can see three ratings and a number. (In his book, How to Make Money in Stocks, William O'Neil explains what these ratings mean and what the numbers mean, and how to pick the best stock.)

    If you are looking for a book which contains stories, adventures, and market lessons at the same time, then read The Reminiscence of a Stock Operator by Edwin Lefevre. This book tells the story of the famous trader, Jesse Livermore. Another good book I've found is the Money Game by 'Adam Smith.' Both of these books are very entertaining.

    In order to trade stocks, you do need a significant amount of money. Some people say you need at least $10000. I would say that you need at least $3000. If you don't have that much money, it is going to be very hard to get started. However, if you just want to buy and keep your stocks for a long time, then it doesn't really matter how much you start with. You can invest as little as $100. At first, it may go down some, but later your investment could double. If you're making money, you can always keep adding more money to your investment account, so you can keep buying more and more shares.

    Many people like to ask what's the best stock to invest for the long term? There's no best stock, because every stock could go bankrupt no matter how famous or how big the company is. That's the risk. For example, you can read about Enron Corporation on the internet. It was a big corporation and went bankrupt and disappeared in a matter of months! If you don't want to take that kind of risk, you can invest in exchange-trade funds like SPY.

    So, if you are asking the question "WHAT'S THE BEST STOCK? What's the safest stock?" and nobody gives you the answer, then do a research yourself. If you can't come up with anything, then you just start investing in SPY. SPY is the S&P500 fund. If you buy SPY, you invest in 500 American companies. You basically invest in America's economy. If the stock market goes up, your money goes up. If stock market goes down, your money goes down too.

    This chart shows the performance of SPY:

    http://chart.bigcharts.com/bc3/intchart/...

    The cool thing about SPY is that when you watch Fox News or CNN or whatever, you can see whether your money is going up or down today, because they use to show the leading market indexes in the corner of the screen. They show the NASDAQ, DOW, and the SPX. If the SPX goes up 10 points and you own 10 shares of SPY, which means your money increased $100

    Once you decide to get started, you can open an account at Scottrade and buy shares with your own money. If you are under 18, you should ask your parents to open an account for you. (You have to have at least $500 to open an account.) If you have Scottrade, you can log in to your account anytime and check how much money you have, and you can also buy and sell stocks online.

    There are two important rules you should keep: Stay away from debt, and do not invest more money than what you can afford to lose. If you can keep those two, you will be fine.

    ---

  • 1 decade ago

    There are a lot of sites devoted to educating young people on investing in stocks. I don't think you are too young to learn how to mannange your money. I commend you. www.financial-realities101.com and lucky-dog-investing is written for the young beginning investor. Check them out also check out yahoo finance.

  • Anonymous
    1 decade ago
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