Young Investors: 5 Tips for Getting Started in the Stock Market
-
Determine your investment plan, including your goals, time horizon, and risk tolerance before buying stocks.
-
Use a licensed stockbroker or regulated online brokerage to open an account and place trades. Top choices for young investors include Fidelity, Robinhood, Charles Schwab, and E-Trade.
-
Research stocks thoroughly before buying them. Good places to find stock ideas include the holdings of relevant ETFs.
-
When ready to trade, you can use market orders to buy/sell immediately, limit orders to control the price, or stop orders to trigger based on a target price.
-
Consider starting early and using regular investments over time to allow compounding to help you reach your goals.