Money Forum World

Issac Lindsay · Joined: 08 Nov 2007 Posts: 2082

I am 13 years old and could like to get into stocks. I have been searching the web and could like to get in to penny stocks, but I know little and don't want to get into some sort of scam. If any one has any info or ideas I'm open to all.

Schnizer · Joined: 08 Nov 2007 Posts: 2133

If either of your parents has a stockbroker, talk to your parents, they may want to cosign an account. At 13, nobody will give you an account by yourself.

I myself believe the stock market is going to collapse with the US dollar. I may propose investing in goods.

Dan Harding · Joined: 08 Nov 2007 Posts: 2232

you will most probably be scammed, and penny stocks aren't the place to start. Get a discount broker account and put your money into free mutual money 1st.

Mr. Cash · Joined: 08 Nov 2007 Posts: 2161

You have lots of reading to do.

ragingbull.quote.com/cgi bin/stat.

Its a fast way to learn about stocks. Also check this one out.

Good luck, I have been in stocks for awhile and my mother works for a firm.

money.howstuffworks.com/stock.htm

Vicky Holden · Joined: 08 Nov 2007 Posts: 2103

penny stocks are penny stocks for a reason, and yes, once in a blue moon a penny stock makes lots of money, but for each penny stock that strikes it rich, there are 999 penny stocks that stay penny stocks.

if youre serious about investing, at your age and earning, you could be better off buying mutual money, they're diversified, and give you a wider portfolio. think about buying mutual money which invest in the chinese market, they have been doing well and show no sign of slowing down .

BlingBling · Joined: 08 Nov 2007 Posts: 2123

Sorry, but you must have an account which is a contract with a brokerage firm &amp, you have to be 18 to legally enter into a contract.
So, for the next five years save $$ and read everything you may be able to get your hands on from the library &amp, online re: investing.
Maybe by the time youre 18, youll realize penny stock is high risk more like gambling investments should be made in established businesses.
Good luck.

Aisha Rush · Joined: 08 Nov 2007 Posts: 2158

stay away from the penny stocks. there's a reason they arernt traded on real markets. They dont have to meet the financial prerequisites and usually they're just shell businesses that someone takes over and hires a pump and dump firm to attempt and get volume started so they can sell out of thier investments. Start with investor.com and learn how to screen for businesses with real growth and income.

Normand Vincent · Joined: 08 Nov 2007 Posts: 2073

Penny Stocks are one of the most mistaken stocks in the market. I dont know if you're a 13 year old with thousands to invest, or just a little, but 1st you must know that to trade you must have a brokerage account, and most brokerage accounts require some hundred, if not some thousand to start them up.

Penny stocks generaly only move small percents of a penny day to day. Penny stocks are usually for a much more advanced traders who have an eye on the market all the time and have thousands to invest. People think Penny Stocks are the best for people who only have small amounts to invest, but honestly, if you're only investing $100, the penny stocks will most likely take it all away in about three months.

Where penny stocks come in really useful is say a stock is trading for $.01/share. Well, if it moves up $0.01, you double your money. The problem is, they usually dont move up and down full cents if they're a penny, or percents of a penny . They move up and down like 1/16 of a cent at a time. Unless you may be able to catch that rare time where it really moves up a penny or two,, then sell it, but you must be watching ALL the time, and be prepared to execute your sell order now. Penny Stocks are usually not for lasting investing, and not the best way to start off in the stock game.

To be honest, penny stocks are penny stocks for a reason, and usually go broke rather quickly. Ive done lots with Penny Stocks. The problem is, its nearly impossible to find any REAL research on stocks being traded on the OTC or Pink Sheets.

Penny stocks are what some people choose to get in with to start because they sound cheap and everyone hears of the unbelievable growth possible. But they're the highest risk stocks because they're typically start up businesses, or small businesses or businesses new out of bankruptcy and they dont have near the compliance prerequisites of stocks traded on bigger markets.

If you want my honest advice, penny stocks will be majorly frustrating for you, and there's little chance of return. If your interested in begining investing, look at smaller electronic trading sites like ShareBuilder. ShareBuilder is MADE for people to start investing. eTrade and ScottsTrade I think both have some bigger inital prerequisites for investments. I have an eTrade account, and a ShareBuilder Account. With ShareBuilder, you may be able to choose on a small amount of money to invest each month, and you set the stock you want to purchase. They don't deal in OTC stocks but. they're all big board stocks.

Check out IPOs that are just launching, and pick IPOs that are just now to get launched that are businesses you have heard of and are just now going public.

Keep an eye on biz..com/ipo/
There may not be anything on now you have heard of I wouldnt know but it'll change all the time. Keep your eye out on businesses that you know about and if you think they're good businesses, set your ShareBuilder to purchase.

Honestly, you'll most likely have to get your parents to set up the account and it really depends on how much you may be able to pay for each month . I believe you officially must be 18 to set up an account and trade, but I may be wrong. Also remember that it typically costs you about $20 to purchase a stock, and $20 to sell a stock based on the brokerage firm you use, if you dont make at least $40/trade, your losing money.

Kay H. · Joined: 08 Nov 2007 Posts: 2155

Have tried the penny stocks all went out and think you could be better off to go for value stocks instead if you just pretend to purchase.

If you really want to purchase then just purchase some shares. My best performers in order of % get are GG, MRK, ALNY, DNA, AOB, MLNM, DNDN. Think AOB at $12.72 may be a good start, but it's up now. attempt to find value stocks that everybody hates so you may be able to purchase them at a great price.

Penny stocks may be good, but ninety % of all new businesses fail in the 1st year.

Loren Shaffer · Joined: 08 Nov 2007 Posts: 2129

FIRST &amp, FOREMOST: A word from the wise is sufficient: avoid the penny stocks. Why? Because they're far, far, far too high risk and unstable.

In my investment group, Penny stocks are usually called Roach Motels. Its easy to get in, BUT its hard to get out with a profit.

Take it from me, I lost quite some dollars AND LOTS of time on these.

Heres what I learned about trading:
1 There arent any gifts on Wall Street.
2 Trees dont grow to Heaven neither do stocks.
3 Traders earn money when the market goes up.
Traders earn money when the market goes down.
Traders earn money when the market goes sideways.
Trade in the direction the market is going.
4 There are many, various strategies for earning money in the market. Master two to five different strategies and you may want to be able to earn a nice living.
5 Plan your trade AND trade your plan.
6 Before going live in the market with your real, hard earned money: Paper trade. Paper trade. Paper Trade AND Paper Trade some more. Paper trading is pretending to trade with real money, but it doesnt cost anything except the investment of your time.
7 V.I.C. P.I.E.
Volume Is the because, Price Is the Effect.
8 When the trade doesnt work out get out.
When you reach your target in a specific trade, get out.
9 Bulls earn money. Bears earn money. Pigs get fat.
Hogs [greedy traders get slaughtered. These people lose lots of money.

There are many, many others.

Want to learn more about the market and trading? Go to investopedia.com its a free site. Nothing to purchase.

Thanks for asking your Q. I enjoyed taking the time to answer it.

VTY,
Ron Berue
Yes, that's my real last name.