One of the rules of thumb in trading/investing is that you have to have money to make money.
Again, call me a prude, but my suggestion is that the risk of making any significant amount of money with $300, given the market at its historic highs, given that with 300 bucks it only looks like you have to deal with small companies, (how far is 3 shares ofintc going to get you), given that small, cheap companies, often go lower, sometimes to zero, I think our aspiring 13 year old freind would still be best to:
1) put his 300 bucks in a mutual fund, a growth fund like a noload trowe price science and tech
2) be happy with whatever returns, negative to up 30% thatthe fund might generate
3) find a great job so he can sock away and save like a squirrel for a few years
AND then when he has some money to do some trading/investing, then he will have the money necessary to make money.
I am surprised noone suggested he buy some deep out of the money calls. (JUST KIDDING)
My young freind, put your money in a mutual fund,learn all you can about the markets, work as hard as you can now, earn some cash, save and save and when you get some money put aside, then approach the markets.
Remember, ifyou lose the 300, you didnt just lose 300, youlost the whole thing. You willthen have nothing to work with at all.
Regards,
Steve@yamner.com |
