Yes, and no.
No:
If you buy stock hoping that you can sell it for a quick profit because of the daily or monthly swings in price, then you are gambling rather than investing. You are trying to guess better than the public, including professionals, how the price will change.
Use your gambling money at a casino where you would have better probability of winning.
Yes:
To truly invest, choose a company that has steady earnings each year instead of losses. If your company has very little long term debt, it will likely not get into financial trouble.
Buy quality stocks and hold on to them. When you hold these over a period of time, the share prices will go up for a real reason - the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a money making business.
If you save a portion of your income each payday and as it accumulates invest in stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
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At your age, you can expect to need money for important things such as college, a house, car and family needs. These things come first.
Buy stocks with money allotted to your "life savings". Even then, you will occasionally need to sell some stocks for emergencies, but the money can grow during the meantime.
. .
Stock trading is not a good way to earn money to live on.
The best dividend payers provide maybe 4% per year. That means if you invest $1000 you'll only get paid $40 per year.
You can get a higher return on stocks that have a higher risk of falling in value. If you invest $1000 the stock might have an equal chance of being worth $2000 or $100 after a year. That's fine if you have money to gamble, but it's not a reliable source of income.
Also, you have to pay a commission with each trade, so the more actively you trade the less you'll earn.
Here's how people make money from the stock market:
Buy stock in a good company that should make good profits over the next 20 years.
Wait 20 years.
Investing in assets is the best thing you can do best, better so at your age 18 to start making money and creating wealth. You want to invest in stocks invest in dividend stocks these are safe stocks no matter if the economy is good or bad. These stocks are the least affected in the market. Dividend Stock generate you income long-term with no need to sell your stock plus you will own a piece of company. The safe thing to do is buy at low prices the smart thing to do.
But, before you do any investing educate yourself first regarding the stock market. The stock market is based on speculation trading which is buy and sell with risks to lose or make money, you want to make money. and there are Long-Term Investors buy dividend stocks which is the best stock to invest. Visit www.geniusinvestors.com to learn more.
If you are talking about trying to generate income to live on from trading stocks, forget it. Even if you can come up with $200,000 or so to invest, at 10% per year that is $20,000. And getting 10% is no sure thing by any means. If you want to invest for the long term that is great, but don't expect money to come pouring in.
Buying stock is a great idea at a young age, if you can afford it, but it is a long term investment, not a source of immediate income. Right now, you need to focus on getting a job (or building a business).
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Stock investment must be for long-term investment at your age.So prefer the investment for longer period to 10 years and above.While selecting the industry and the company you must consider the following.
1. in which country your are native and in which country you want to invest.
2. Shares of well established companies with long good track record at the time of bottom level of the price are to be preferred.
3.Nature of the industry must be steady in growth and longevity in survival are to be selected.
4. Investment must be spread in different industries and different companies.
5.Spread your total investments into other than shares also.
If you are looking aty stock as income, nope, bad idea. Stock investing is a long term play unless you really really really know what you are doing (and asking this question indicates you are not there yet). Stocks go down as easily as they go up, and you don't want to be forced into selling for the income when your stocks are down.
It's not just a GOOD idea. It's a GREAT, OUTSTANDING idea, but not for earning "Spending Money"
It's a great idea for saving and INVESTING and increasing your net worth for the rest of your life so you will be comfortable when you're middle aged and when you're retired. Don't count on the government to support you. They're already in debt up to and above their ears.
When you've got some money, here's what I'd suggest: No-Load Mutual funds. You'll find them online.
1) High quality investments are best. They are safer. This means you need to aim for hitting singles and doubles, not home runs. (You'll strike out too often). Making money is a long, slow process. It requires patience and discipline
2) The no-load funds offer instant diversification, and you get the benefit of the managers' expertise. They're more knowledgeable than you and I. Let them be "your brains". Whatever you do, avoid penny stocks.
3) Throughout your life, try to save as much as you can. (I think you know this.) That way, you'll have more to invest sooner rather than later.
4) Try to invest a certain amount each month. This gives you the benefit of "Dollar Cost Averaging"
5) If the value of your investments goes down, do not worry. They'll come back up.
6) Most people don't know when to sell. I know I don't. So I just hold on to them.That way, you don't pay any capital gains tax. And you don't have to worry about what to buy next. Hey! They were good investments in the first place.
7) If you can afford it, re-invest any dividends that the fund pays. That way, you get the benefit of compounding.
There are many good no-load mutual fund families. Vanguard Funds, T Rowe Price, and Dodge & Cox, to name three.
Look for the funds that invest heavily in "defensive" stocks, like food companies and consumer products, and public utilities.
Or if you want to invest in individual stocks, then check these defensivo ones out:
Coca Cola
Pepsico
Conagra
Heinz
Kraft Foods
Mondolez
Kellogg
Unilever
Nestle
General Mills
Altria
Procter & Gamble
Kimberly Clark
Colgate Palmolive
Clorox
Church & Dwight
Pfizer
Abbott Lab
Abbvie
Johnson & Johnson
McDonald's
If you want diversified companies, then buy
Three M Co
General Electric
Illinois Tool Works
They'll all be worth a lot more in 50-60 years. There's a lot less risk with these companies than with with small companies that haven't stood the test of time.
If you don't have a job you don't need to be investing in stocks.
I'm 18 and looking for a way to earn money. The job market in my area isn't that great right now and I was wondering is buying stock at my age a good idea?
YES YES YES.
Brilliant young man.
But before you start just take time to understand the risks involved.
you could lose everything very quickly
so, no, not a good idea
