Your Questions About How To Invest In Stocks

Richard asks…

How much Should i invest in stocks?

I am sixteen and am going to invest in stocks, how much money should i put into stocks right away?and what stocks would you recommend for me? I plan on investing in quite secure stocks some with dividends. I understand it’s quite a vague question, sorry


John answers:

At sixteen, you have FIVE DECADES to recover from anything you do that turns out to be foolish, so the best thing to do is just “participate” and learn! I applaud your interest. By the time you are as old as me (old as dirt) you will be wealthy far beyond your expectations if you start at such a young age….you are smart!

Here’s what you’ll need to do though; until you are 18, you’ll have to invest as a “Minor Beneficiary”, so you’ll need to get someone over 18 (preferably a parent) to help you open an account titled “Adultsnamehere FBO Jim Tim” (FBO means “for the benefit of”, and the account will bear THEIR Sociual Security number until you are 18, although legally it will still be YOUR money….)

Look in your refrigerator, and in the refrigerators in all your friends houses….if you see a product that’s in most of them, look up the company that makes it and buy some of their stock….especially if it pays a dividend!

Mandy asks…

Is it a good time for me to invest in stocks? How do I get started?

I figure, with everyone selling their stocks and the prices being so low, now would be a good time to get in. Is this correct? If so, How do I get started?

John answers:

Go here and listen to their picks.

They’ll tell you everything you need to know to make it HUGE.

You can be banking BIG time by next week.

Go to:

William asks…

How much would I have to invest in stocks in order to earn $100 dollars per month?

Im just curious… Ive never invested on anything before, so I was wondering how much money I would have to invest to earn $100 a month (which would then just keep being reinvested again).

Ive looked through fidelity and found some interesting portfolios. As for the interest rate, just use an average.. I just needed to know an approximation


John answers:

It all depends on the amount of risk you want to take, along with your stock picking abilities. The stock market is fairly risky, and even if you have a million dollars invested there is still no guarantee you’ll earn $100 per month if you invest in it.

If you want to be sure to earn $100 per month, then I would suggest more conservative investments. You can get bank accounts that are FDIC insured and pay $100 per month in interest (rates are somewhere around 1%, which is very low, if you can even find that much). So a $100,000 investment would pay 1% per year, or $1000 per year. Or you could buy into a REIT (real estate investment trust), but unless you get it through a mutual fund, it will tie up your money for a number of years. Or you could try a MLP (Master Limited Partnership) which is a stock that earns a set amount of money each month since it owns things such as pipelines to transport oil or gas, and the money it pays out is the fee it charges its customers to use its pipelines. There are also stocks that pay dividends, such and Proctor and Gamble, but the price of the stock (and the amount they pay in dividends) can also change.

To get a guaranteed amount, go with a CD, but you’d have to put a lot of money into it since interest rates are so low right now.

Laura asks…

Do you have to be a certain age to invest in stocks?

In the USA, is there a legal age you must be to invest? Also, what company or organization is rated best overall to use for investing, or is best with beginners? I don’t know much how the stock market works, but I’m interested in investing.

John answers:

You could start exploring the net for a lot of free info and online stock market investing education. It is a wild market and one might get burnt if not educated or careful with risk prevention. Go conservative first and you invest more as you are more seasoned. Check out this link for free articles and resources.

Sandy asks…

How do I invest and buy stocks?

Iam only 19 but I would like to know how to invest, with stocks,trade etc….

I was thinking about buying some and then simply holding out for the right time I have about 2 grand saved (Iam pretty good about saving my money)

so how do I go about doing this any tips or advice for someone who does not have much of a clue?

also I know the economy is pretty bad but not doing anything is only making it worse in my opinion.

Thanks for answers.

John answers:

If you’re a rookie in investing or stocks, go to

Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.

That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.

Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to They’re excellent for beginners.

If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.

Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.

I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.

Good luck.

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