17 yrs old stock questions?

Question

I want to get into stock investment. I am 17 years old and most of my knowledge comes from my economics class. We did a stock project and by the end of the month I had like + $8000 in fake money. After checking out some of the stocks I invested in for my stock project about a year or so ago I realized those stocks have nearly doubled in price, which means I'd be quite wealthy if those investments were real. 

So I basically have no money, but would like to invest $100 starting off small and once I double that $100 dollars then I will put that in the bank. I will then start back over with $100 and from that point on all the money I will be using for stocks will be generated from my success. 

I will soon have a minimum wage job and thank God I have basically a full ride to college my first year. With that job I will continually add probably $100 a month or more to my stock investments while saving half of my paycheck. 

WITH so little Cash at the time I am curious at what is the best online trader to use. I am not looking for advice on how to sell or trade. Just what is the best company to use ( Etrade, Scottrade, First Trade etc).

runnin_bear_bare · Accepted Answer

I like Scottrade     most common stock trades are only $7 and they have online info for all kinds of investing  

I'm sure though that others are competitive

A Hunch · Answer

I invested in for my stock project about a year or so ago I realized those stocks have nearly doubled in price, which means I'd be quite wealthy if those investments were real.
= I don't want to burst your bubble, but I want you to be realistic.  The stock market was SOARING for everyone the first quarter of 2013.  It has since leveled off some.  You did "good", you didn't do fantastic.  If you had small increases during this period you would have been doing "bad".  

The average annual increase on stock for a GOOD investor is 7%.  From 2008-2010 there were decreases.  We are not just making up for that.
- After 10 years, you can expect your $100 investment to be worth $196.00 = even the 30% gains we saw in early 2013 = it would take 2.5 years to double.
= I'm telling you this to be REALISTIC, not to dissuade you.

You probably will need a minimum of $500 to open a brokerage account.  When you are 18, you can open your own account.  If you open it before your 18th birthday, it will be a custodial account.

Luke · Answer

Good idea teaching yourself how to buy and sell stocks! I hope you are doing lots of reading and such.

I would personally recommend optionshouse. I find they have a nice balance of cheap prices ($5/stock trade I think), while still being user friendly and accessible. Of course most brokers will do the job. 

Also with optionshouse, there is no minimum for opening an account. 

If you wanted to trade a few hundred bucks, I think that is a good idea, but remember, you should never trade with money that you cannot afford to lose! 

Another nice feature of optionhouse is that they allow you to open a virtual account (this is free, just like opening a regular account). In the virtual account, you can add as much money as you want, and trade stocks in real time, but with fake money! This is a nice tool to get used to the mechanics of placing a trade with optionshouse, and allows you to practice different investment strategies without any risk! (this is particularly helpful for those of us that actively trade, or who do technical analysis). 

Optionshouse also has a bunch of tools that you shoudl spend some time figuring out, if you are intersted in fundamental analysis. 

If you want to learn technical analysis, look at TD ameritrade, and download their charting software, "think or swim." It is free and allows for some good charting! 

Good luck and enjoy!

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17 yrs old stock questions?

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