I want to start investing my money...

Okay... I wanna be rich. (lol) I wanted to invest my money into the stock market and stuff like that where I can possibly get a high return. I would get google stocks but at that price I don't wanna pay so much for 1 share...

Can anyone give me some advice on where to start or where to find some really great info on this kind of stuff? Also I've noticed some sites like yahoo finance that really help you with that kind of stuff but unfortuantely they are not free... (I want something free!!!)

PS I don't want to invest too much money right now... I maybe have like 500-1000 canadian dollars to throw out at this.

Thanks in advance to anybody who wants to help me get richer

Moved from the Lounge.

I use to work in Financial Services and I came across people with this belief all too often.

You do not get rich in the stock market, and you definitely don't get rich quick! You get lucky... and more often than not, you don't (at least when you "play" like that)

It takes time to have your money make money, and therefore it also takes money to have your money make money. Any money you put into investments that aren't your savings account or a money market, you have to be prepared to not have (at least when you want it.)

Your time horizon needs to be a minimum of 3 years, more like 5, and better off being 10. On average the stock market has returned a little more than 11% per year... rewarding long term investors... sure, you could get in at a low and ride it to a high in a year, but that's not what actually happens... timing the market is very difficult.

If you are serious about investing, and you have a longer time horizon than "get rich quick", the best way to do it is in mutual funds. Why buy one investment that can tank or go up, when you can buy 60-70 (sometimes even hundreds)... If you know what you are doing, or like doing your own leg work, drop by Fidelity, or VanGuard, most of their products are free... but don't go crying to them if you make a mistake... I would seriously recommend finding a reputable sales representative that you can meet with to discuss your goals (GET RICH IS NOT A GOAL!), they can recommend what's best for you... don't go with one that works directly for a fund company... use a broker, be aware though that nothing is free... you'll pay a sales charge, and they get a cut (though on 1000, the rep'll get paid 20-40), so they aren't going to get rich off you... I don't know what the cross border laws are, but if you want a recommendation on a high quality low fee fund family, look no further than American Funds (no, I didn't work for them, I did however work with them, along with more than 200 hundred other companies). But you can't buy AF directly, you have to go through a broker, but if you tell him/her you want AF, and you'd like to learn more about them, as well as what type of account you should use... that's probably a good place to start...

If you look at other companies, here is something to look for...

what's the beta of the fund (1=S&P like volatility, <1 is less volatile, >1 is more volatile), compared to it's passed return(high return, low beta is good; high return, high beta is risky, but could be worth it...; low return, low beta is slow and steady wins the race; low return, high beta... RUN!!!)
What are the sales charge schedules (most funds are pretty comparable don't pay more than 5% up front, or 5-1 8 yr CDSC.
What are the annual expenses? These are a % of the NAV and pay for the operating expenses of the fund... index funds will be traditionally lower than managed funds. Never pay more than 2%. 1-1.5% is worth it in some cases...

Don't let anyone fool you, index funds are not the gods of mutual funds... there are plenty of managed funds that have beat the indexes over the long haul and short periods even when you factor in the higher expenses. It's a bunch of BS that a money manager can't beat the S&P 500... they can, they do, and I can prove it with my retirement account!

The single most important thing about investing is not to make emotional decisions... Sure No load (free) funds may perform slightly better than loaded funds, but actual investor returns tell a different story... the average no load investor has had a lesser return than the average loaded investor... why? because they bought high and sold low! they made emotional decisions about their money... Don't do that!

The second most important thing about investing is to stick with it, and add more money... the best thing you can do for yourself is to set up an automatic investment plan... put away as little as $50 a month, and when you're 60 you'll literally be a millionaire (though it won't be enough, I guarantee it, if you only save $50 a month for the rest of your working life!)

OK, I've rambled enough... time to move on...

Good Luck!

K thanks a lot for the detailed reply. And yea I know by teh "getting rich" part I was exaggerating. Well do I have to see a broker or something or can I pretty much take care of this myself? I'm only 16 so I thought investing my money will be much better than wasting my money on gadgets I stop using after a month... or boose. My parents are paying for college so all I got to worrry about are probably my driving lessons and the insanely stupid amount of money I spend on clothes every year. The rest of my money is surplus until I get a car. Banks have pretty crappy interest rates, and GICs have too much of a low return in my opinion. So I wanted something fun and risky like the stock market.

My goal is to invest in something that will give high return, medium risk (I'm not relly the kind of guy who's gonna check his stocks every hour just to make sure), and that has no long term contracts so that I can use my money right away if I really need it. I don't actually care how much money I make but my mentality is that, if I only make $20 a week, it's still $20. Seems like nothing but I can come up with a huge list of things I can do with just $20. I'd also like to retire really early so I can enjoy life the most. (According to what I learned in economics this year, I should be looking at stocks and bonds... right?)

Also like I said I don't really wanna pay someone else to take care of my money (I'm one of those do-it-yourself kinda guys), so if you know of any good books or sites taht can help me with this I'd be really happy. (Like I'm actually serious about this whole investment stuff...)

Thanks

If you're serious about long term investing a Roth IRA might be the way to go, (it might be US only, but I doubt it). You can put money in, you pay tax on it now, since you're at the lowest tax rate you'll ever, be. Then you get it out at retirment time. Not exactly something you can use in the short term but you can put money in, forget about it, and let it earn interest for 40 years.

If you choose to invest in stock, research your companies, and pick something you're familiar with. When I started at about your age I chose of all things fast food / restraunts. I did a bit of research and found out that wendys was in the process of building a lot of stores that weren't open yet, but decided once they started opening it would mean a lot more money, so I invested most of my money in Wendys. However to keep things balanced I invested some of my money in McDonalds, and some in Bob evans (homestyle food, not fast food). That way if wendys didn't do as well, hopefully one of the others would.

As it turned out wendys did just fine, but it was nice to have a safety net. My advice, pick something you understand, do a bit of research, and diversify.

-MBirchmeier

I was 16 once and thought about the exact same thing. I was naive enough to think that I could get into the stock market with $500USD. It was online broker's age requirement (must be 18 and up) that stopped me from throwing money into something that I didn't completely understand.

I read an investment book one summer and discovered that all investments take time, knowledge, and money.

Since you're only 16, I suggest you read a few good books, track your "stock" on paper, and build up experience and knowledge before you get into the real thing. Have your parents help you out if you really what to start (this is your only way really).

Ok thanks for the advice... I'll try to go to the bank with one of my parents some time and I'll see what they can do.