Investing in stocks on the TSX.

[M-Cohen 0]

Hello, I'm 16 years old as some of you may know. I have recently been given some money to whatever I want with and I would like to invest it into something that I research on the TSX. Though, before researching what I want to invest in I have been trying to find out how I would go about doing this. I've searched google, the TSX site and others and yet I still cannot find out in a straight forward way how I do it. If any of you can give me some help with this or can steer me in a direction that might be able to help me that would be great. Thanks!

Also, I'm wondering if it's even legal for me to do so, as my age might be a restriction.

[ljbaron 0]

How much money are you looking to spend?

[Gongshow11 1]

this is not the best place ot ask investing advice. Although there might be some knowledgeable people here, A broker would be better. At 16, i assume, and correct em if im wrong, you didnt receive a huge sum of money, so big time companies are going to be tough to invest in. Look for a new company starting out in say technology because when they first issue stocks on the primary market, they will tend to be cheaper. You can also look at online security exchanges like the NASDAQ, which is all electronic and easier than the TSX.

If you choose to look at the TSX, i suggest buying stocks at a dealer rather than an auction, seeing as you are so young.

I have knowledge in stocks, but I am no way a stock broker. I'm in school now, so take my advice as you please. I will not be held responsible for what you choose lol

[Jason Harris 31]

An important question is what would be your goals? If you're hoping to make some good money quickly, you will probably be disappointed. About the only way that will happen is by day trading -- buying and selling on the same day, effectively. Conceptually, it makes sense. 3%-5% profit overnight is a huge profit when extrapolated over a year, but you pretty much need to be at the computer all day to get in and out at the right time. And that's assuming you pick the right stocks. Then you have to consider trading fees (times two: buying and selling), and hope you still make a good return. It can work. I made decent money when I was doing it, but I also lost many times more in one bad trade.

The safest route, of course, is buying the right stocks and holding over time, but it's obviously not as sexy, nor as profitable as successful day trading.

[hockeymom 2]

Ti-Cat, a number of the direct discount brokerage places have research available. And most Canadian banks too - because they now offer direct trading. Check out Bank websites - I don't believe you have to bank with them to access it.

[headonaswivel 1]

I personally have been investing, using both a broker and on my own for the last 8 years.

Listen to everyones words here....... I now mostly use www.etrade.ca and have found it to have been perfect for everything that I need.

Good luck

[M-Cohen 0]

Gongshow, I'm looking to spend about $5,000.

[Juice_Slowjamz 0]

If you're 16, think long term growth. Any blue chipper or damn near any stock on the S&P 500 would be a good fit. Just pick a big company that you like/shop at, buy it and forget about it. If you aren't going to touch it for years and years, you have a lot of options. The stock market, and most stocks will always go up in the long term.

[UMWhockey 0]

really, since you are young, you have the ability to take more risks and seek larger gains. If the 5k is just for investing, I.E. not for college or anything else, you would probably want a more aggressive portfolio, focused on growth stocks. The way to look at it is, be aggressive early rather than later. Who knows, your aggressive nature may lead you to the next Google and make you a lot of money. If you were starting a family and was looking for investment advice, things would be a lot different. You would focus on a more balanced portfolio.... and if you are close to retirement, then it shifts to wealth preservation. Investing is a cycle and it all depends on what you are looking to get out of it and when you need the money available. The biggest thing I suggest is to do a lot of research and don't check the price every day. It is not a sprint.

hope that helps

[jjtt99 0]

Getting investing advice from a hockey discussion board could be scary. After all Mike Modano may be posting on here.

Two pieces of advice for your consideration:

1.) Look into using your bank's investing arm because it's really easy to get that going. Just contact your branch.

2.) Look into index investing. Spend time on this site http://www.ishares.ca

If you're looking to invest in the Canadian economy as measured on the TSX, the iShares' XIC fund does that nicely without the huge fees that are assocaited with Mutual Funds.

Good luck.

[Vapor 0]

I always listen to emails I get from people I dont know. I have this great guy t o m. He told me to invest in this up and coming pharm. company "predident". The stock is currently trading at 3 cents, but is ready to explode all the way up to 5 bucks. So I threw everything I had into it...

[Jason Harris 31]

Apparently, t o m has enough respect in my abilities to pick stocks, because he doesn't email as often. His associate, however, must have been talking to my wife, because I get constant emails from that guy....

[Juice_Slowjamz 0]

If you're 16, think long term growth. Any blue chipper or damn near any stock on the S&P 500 would be a good fit. Just pick a big company that you like/shop at, buy it and forget about it. If you aren't going to touch it for years and years, you have a lot of options. The stock market, and most stocks will always go up in the long term.

Hmm, I don't know about the long term growth. UMW nailed it. Maybe when you are nearing retirement you think about that long term growth and safe picks. But when you are younger and have less to lose you can afford to take more risks. I don't recommend he throws his knot into one stock of course. You have to diversify. The technology people at the turn of the century got burned by not doing this. 5K can get you a descent portfolio...Smartest thing to do is to not bunch all your picks (4-5 or so) in one industry. You have to play it fairly safe, but at the same time as a young person you can afford to take a more speculative stance on stocks.

Do your research- Learn what the financial ratios mean and such. It is not as easy as seeing an upward trend on a graph and assuming the stock will continue to go up. That is for day trading where you can be in and out of picks within minutes (and that is not simple either because most day traders burn out in a year or two).

I would really recommend taking in a book or two on investments just so you get the rule of thumb and learn the basics. I congratulate you on not wasting the money on garbage, but time is on your side. You can always put it in an account for a few years as well. Best of luck and I'd be interested in hearing how you make out.

Naw, you defentaly don't have to worry about long term growth when you're about to retire. You don't have that much time left on the Earth to be worried about what your money is going to do in the next 20 years.

I liked that Edward Jones commercial, where a dude bought a painting at an auction and then turned around and tried to sell it. "Buying and selling stocks doesn't make much sense either."

[Cavs019 708]

Theo's tidbit of advice on diversifying into multiple industries is extremely important. While the aggregate market will have its ups and downs, different industries will act independently in the sense that if one industry is killing you, the others will likely not follow suit. The ultimate result should be a more stable portfolio in the short run.

[M-Cohen 0]

Being as this is my first time, does it make sense to go to a Broker? Or is learning from your own mistakes good in this market?

Also, UMW the 5k is only a portion of the inheritance. Which is pretty much designated for investing.

[UMWhockey 0]

if you are going to start to build a portfolio, then going to a broker or an investment advisor might be the best. They spend all day doing research and can break down stocks into different categories. If 5k is only a portion, then I would use a good amount of that going after high growth stocks... if they fail, you are still young and really didn't take too much of a hit..... if they take off, well than you can build that 5k into a larger and more stable portfolio.

[GSHL99 0]

I don't know if I'd bother going to a broker with only 5k. With such a small amount you might consider funding an E-Trade account and playing with penny stocks to get a "feel" for it.