Penny Stock Q&A: 19 years old, want to get into Stock investing?

Question by Mr. Horsepower : 19 years old, want to get into Stock investing?
I just turned 19 not too long ago (last month) and I want to start investing in Stock. I am in Community College and I want to find away to try and make a few extra Hundred Dollars a month maybe? Rather than try to get Rich quick like most investors try. I have tried the simulator on Investopedia for the last few months and done will with it, but now I want to try real investing.
My dad says I should still call a broker, though most people don?t use brokers as much.
Should I call a broker?
Also is it possible to make a few extra hundred dollars a month off returns?
Should I just start with Penny Stock as well?
I was also looking at Exchange-Traded Funds, would those be good to start?

Best answer:

Answer by i
i am 17, and because im bellow 18, i have to get my parents permission. my dad says broker?s are a waist of time. They charge you stupid amounts.
yes! its more than possible, you just have to be careful which firms or markets you invest into.
i dont think you should bother with penny stock. you have experience on the stimulator so why bother?
im 17, living in the Uk, and i currently hold ?20,000 through investing in stocks and shares.
good luck, its a dangerous game, i hope you know what you are doing?

Answer by Mike
I don?t like brokers, even though I used to be one. Their job is to get you to churn your account and if you are a ?small fish? they really don?t care about you or your money. I know many brokers would disagree with this, but who get?s called first, Daddy Warbucks, or John C Nobody? We all get how the game is played.

There actually is no minimum legal age to have a stock account by using trusts, although most of the brokers require either 18 or 21 for personal accounts. I believe that both low-cost brokers (Ameritrade and Etrade) are 18. Your minimum to open is typically either $ 2,500 and/or $ 100 per month. Don?t take margin or options in the account, keep it simple and do straight buy and hold until you are done with school.

An alternative are mutual fund companies. Vangard is the key one here, lowest cost index funds out there. Don?t purchase mutual funds in an broker?s account, the fees are usually $ 50 on both ends (buy and sell).

I am a fan of ETF funds especially for small dollar investors (under $ 50,000), but I am also very picky about them. Watch the expense ratios. Again, Vanguard has some good ones. It also depends on what kind of investor you are. I?m a Graham ?buy and hold? with a Fama & French market allocation strategy for trying to beat the market by 200 or 300 bps. Other people try to trade and shave eighths. Both strategies can work depending on your constitution. Typically the bid/ask spread is a little larger on small volume vehicles like a lot of the ETF funds.

Answer by Focusnetservices
Start slowly, buy a diversified group of stocks, ETFs or mutual funds. The most important thing is to do your research. Most investments you can buy on your own, and most online companies keep the trade prices minimal.

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