4 answers
Alejandro
Student
Yuma, Arizona
2
Questions
Asked
256 views
How do you started in the stock market ?
I’m from crane middle school I see all these people with money from the stock market some are successful some or are not what steps would u think help me become maybe successful in the stock market.
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4 answers
Robert Fernandez
Business Owner / CEO - Web Consulting Firm
20
Answers
Los Angeles, California
Updated
Robert’s Answer
Hello,
Firstly, it's great to hear you have the desire to invest in the Stock Market. But as mentioned in previous answers, the legal requirement to invest is 18 years of age. So you'll likely need to wait a bit. But since the market is hitting all-time highs right now, that should actually work out for you since it's not a good time to buy at this time.
In my opinion, the Stock Market is essentially gambling, but on a much more sophisticated level. The basic rule of thumb for investing is to buy low and sell high. So when the Market is high, I would recommend not buying any stocks (unless you know of a stock with high potential and is currently undervalued). There is so much data and marketing that companies utilize when trying to promote their stock, it can be very difficult to predict which companies to invest in.
For example, a company may present higher than expected earnings and a high EPS, but that could because various factors that won't last. Additionally, if the entire Market starts to collapse, then pretty much most stocks fall with it. So I always recommend to purchase stocks in a down market, which can sometimes take years. That's why patience is one of the best virtues when it comes to investing, as you need to wait until the right time to buy. But more importantly, you need to know when to "walk away from the table" with your earnings and learn to be happy with whatever profit you made.
Firstly, it's great to hear you have the desire to invest in the Stock Market. But as mentioned in previous answers, the legal requirement to invest is 18 years of age. So you'll likely need to wait a bit. But since the market is hitting all-time highs right now, that should actually work out for you since it's not a good time to buy at this time.
In my opinion, the Stock Market is essentially gambling, but on a much more sophisticated level. The basic rule of thumb for investing is to buy low and sell high. So when the Market is high, I would recommend not buying any stocks (unless you know of a stock with high potential and is currently undervalued). There is so much data and marketing that companies utilize when trying to promote their stock, it can be very difficult to predict which companies to invest in.
For example, a company may present higher than expected earnings and a high EPS, but that could because various factors that won't last. Additionally, if the entire Market starts to collapse, then pretty much most stocks fall with it. So I always recommend to purchase stocks in a down market, which can sometimes take years. That's why patience is one of the best virtues when it comes to investing, as you need to wait until the right time to buy. But more importantly, you need to know when to "walk away from the table" with your earnings and learn to be happy with whatever profit you made.
Julie Mantey
Global Project Manager
18
Answers
Atlanta, Georgia
Updated
Julie’s Answer
If the stock market really interests you as a potential career, you could find out more about career options by talking to a counselor or business/finance teacher at your school. Ask what studies in college would help a financial career and see if those courses sound interesting to you to start with, or if they know someone in a stock brokerage or related field you could talk to briefly with some planned questions. The prior answers' suggestion to discuss getting started on small stock purchase with your parents is a good way to learn more.
Also realize the people you see with money from the stock market may also have a sound financial foundation of education, working, saving and budgeting to buffer the ups and downs.
Hope this helps.
Also realize the people you see with money from the stock market may also have a sound financial foundation of education, working, saving and budgeting to buffer the ups and downs.
Hope this helps.
Patrick Meyer
Executive - Data Analytics and AI
750
Answers
Naperville, Illinois
Updated
Patrick’s Answer
Alejandro, your curiosity about the stock market at such a young age is commendable. It's impressive to see you taking early steps towards financial awareness. However, it's essential to provide you with some key insights and guidance suitable for your age and circumstances:
1. Age-related factors:
- You need to be a minimum of 18 years old to directly invest in the stock market in most nations.
- As a middle school student, your primary focus should be on your studies and cultivating sound financial habits.
2. Basic financial knowledge:
- Understanding fundamental financial concepts is crucial before thinking about the stock market:
a. Budget planning
b. Saving money
c. The concept of compound interest
d. Various investment types (like stocks, bonds, mutual funds, etc.)
3. Begin with learning:
- Acquaint yourself with the functioning of the stock market:
a. Read books on investing and personal finance suitable for your age
b. Watch informative videos from trustworthy sources
c. Seek advice from your parents or teachers about resources for financial literacy
4. Practice through simulations:
- Numerous websites provide stock market simulations for practicing investment with virtual money.
- This can aid in understanding market trends without risking actual money.
5. Concentrate on long-term vision:
- Successful investing typically revolves around long-term growth, not instant wealth.
- Be cautious about tales of people becoming overnight millionaires from stocks - these are usually outliers, not the norm.
6. Cultivate good habits now:
- Begin saving money from allowances or part-time jobs.
- Learn to distinguish between necessities and desires.
- Set financial objectives for yourself, even if they're modest.
7. Consult with your parents:
- Discuss your interest in investing with your parents.
- They could assist you in opening a savings account or even a custodial investment account that they supervise for you.
8. Be patient:
- Accumulating wealth takes time. Concentrate on learning and cultivating sound financial habits at present.
- Always remember that your education and personal growth are the best investments at your age.
9. Comprehend the risks:
- The stock market comes with risks. It's crucial to understand that investments can depreciate.
- Never invest money that you can't afford to lose.
10. Contemplate your future:
- As you grow older, consider how investing could be part of your comprehensive financial strategy.
- This might involve saving for college, future objectives, or long-term financial stability.
Remember, Alejandro, at your stage in life, the most valuable "investments" are in your own growth - your education, abilities, and character. These will benefit you regardless of the financial journey you embark on in the future. If you continue to be interested in finance and investing, you'll be well-equipped to make knowledgeable decisions when you're of age to directly engage in the stock market.
1. Age-related factors:
- You need to be a minimum of 18 years old to directly invest in the stock market in most nations.
- As a middle school student, your primary focus should be on your studies and cultivating sound financial habits.
2. Basic financial knowledge:
- Understanding fundamental financial concepts is crucial before thinking about the stock market:
a. Budget planning
b. Saving money
c. The concept of compound interest
d. Various investment types (like stocks, bonds, mutual funds, etc.)
3. Begin with learning:
- Acquaint yourself with the functioning of the stock market:
a. Read books on investing and personal finance suitable for your age
b. Watch informative videos from trustworthy sources
c. Seek advice from your parents or teachers about resources for financial literacy
4. Practice through simulations:
- Numerous websites provide stock market simulations for practicing investment with virtual money.
- This can aid in understanding market trends without risking actual money.
5. Concentrate on long-term vision:
- Successful investing typically revolves around long-term growth, not instant wealth.
- Be cautious about tales of people becoming overnight millionaires from stocks - these are usually outliers, not the norm.
6. Cultivate good habits now:
- Begin saving money from allowances or part-time jobs.
- Learn to distinguish between necessities and desires.
- Set financial objectives for yourself, even if they're modest.
7. Consult with your parents:
- Discuss your interest in investing with your parents.
- They could assist you in opening a savings account or even a custodial investment account that they supervise for you.
8. Be patient:
- Accumulating wealth takes time. Concentrate on learning and cultivating sound financial habits at present.
- Always remember that your education and personal growth are the best investments at your age.
9. Comprehend the risks:
- The stock market comes with risks. It's crucial to understand that investments can depreciate.
- Never invest money that you can't afford to lose.
10. Contemplate your future:
- As you grow older, consider how investing could be part of your comprehensive financial strategy.
- This might involve saving for college, future objectives, or long-term financial stability.
Remember, Alejandro, at your stage in life, the most valuable "investments" are in your own growth - your education, abilities, and character. These will benefit you regardless of the financial journey you embark on in the future. If you continue to be interested in finance and investing, you'll be well-equipped to make knowledgeable decisions when you're of age to directly engage in the stock market.
Angelina (Yun Chu) Kuan
Risk Consulting
41
Answers
Foster City, California
Updated
Angelina (Yun Chu)’s Answer
Here are a few ways that you can start to understand and engage with the stock market:
1. Start with Education
Learn the Basics: Begin by understanding key concepts like what stocks, bonds, and mutual funds are. There are many books, websites, and videos that explain how the stock market works in simple terms. Some examples include The Stock Market Game or websites like Investopedia.
Follow the News: Encourage them to follow financial news to see how companies are performing. This can help them understand what influences stock prices.
2. Observe Family Investments
If the family invests, involve the student in discussions about which stocks or funds to invest in and why. This real-world exposure can make the concept more practical and less abstract.
3. Track Favorite Companies
You can pick a few companies they you are familiar with or have strong interests in and track their stock performance. Watching how these companies grow and react to market events can make the experience relatable and engaging.
1. Start with Education
Learn the Basics: Begin by understanding key concepts like what stocks, bonds, and mutual funds are. There are many books, websites, and videos that explain how the stock market works in simple terms. Some examples include The Stock Market Game or websites like Investopedia.
Follow the News: Encourage them to follow financial news to see how companies are performing. This can help them understand what influences stock prices.
2. Observe Family Investments
If the family invests, involve the student in discussions about which stocks or funds to invest in and why. This real-world exposure can make the concept more practical and less abstract.
3. Track Favorite Companies
You can pick a few companies they you are familiar with or have strong interests in and track their stock performance. Watching how these companies grow and react to market events can make the experience relatable and engaging.