PDA

View Full Version : Young and interested in Investing - Help



SwingKong01
06-18-2014,
Long story short, I'm an 18 year old who is headed off to college this fall (as a Finance major- go figure) and I'm wanting to get into investing. I've made an Ameritrade account, and I basically have around $250 bucks to play with. I'm not looking to get rich or anything, just maybe turn that $250 into $300 by June when I leave for college. First, what I've been doing:

I had a practice portfolio that follows the real market but uses fake money. An investing simulator I guess would be a good term for it. I've turned $10,000 into $16,000, but I know I don't have near that amount to invest in the real world, so I've tried a new strategy of investing in affordable stocks ($7-$10 per share), buying them in the morning s and dumping them after about two days, usually making around $15 profit each time.

Should I continue doing this with my real money? Is this a smart choice for someone with limited resources to invest, who doesn't want huge gains, just some spending money? And if not, what do you recommend?

likesmoney01
06-18-2014,
I wouldn't consider it "good" to put $20 commissions into TD Ameritrade's pocket for every $15 I'm putting into my own pocket.

I buy cheaper stocks so that I can buy more volume, as I find that volume is where profit is, and there are plenty of "well-known" companies under $5 per share to choose from. Some examples are AMD, ALU, ZIPR, ZNGA, FMCC, FNMA, SIRI, ODP, TST, VRS, and RSH.

But in the end, you just gotta do what works for you.

DaveLandry
06-18-2014,
Two words for you: "Networking Investment"

In my opinion that $250 would be better spent on throwing a party or paying for lunches with some upper class-men. Maybe find a fraternity with finance majors or the business frat (Delta Sigma Pi comes to mind) and join. Many fraternities (if good at recruiting) will pair you up with similar majors during rush to get that 'in common' aspect with a brother.

Get a job this summer (maybe at a local bank or credit union or a stock broker assistant). Don't apply to 3 places, apply to 30+ places. Don't give up until you have something. Don't use the excuse of "Well it's only a 3 month job" to not look or stop looking. Did you participate in FBLA in high school? If so, I'm sure some of those kids and parents may have connections in the community. Sometimes its who you know, not what you know. You can learn the job as you go along, especially in entry level positions.

So go make some more money. Save up and be ready to hit college looking for networking opportunities. Join the campus investment club or start one with some of those frat guys if there isn't one. Find local businesses willing to invest in the club. This alone could turn into your biggest long-term professional network if done right.

Use your money wisely though. Buying some crap stock hoping to make $15 is worthless at your age. If you play your cards right, in 4 years you'll be playing with much larger stacks of money or work for someone who does. Then you can worry about how to invest all that mullah you're banking AFTER you've got the education and experience to put it to use.

So again, try to turn your current money into a 'networking investment'. Get to know people that can help you in classes or as a network for future job potential. Don't be the douchbag sucking air out of them though. College is also about having fun so don't forget that aspect too. Get to know them on a personal level and show genuine interest in their daily lives and hobbies first and networking through their friends and friends of friends will come naturally.

Good Luck, I'm sure you'll do great! It's college man, have fun with it!