Stock Optionz ~> Tips for Trading ~> Next Article (So Ya Wanna be a Millionaire)
Wall Street Wannabe
By
Marie Havenga
Farrah
Kingsby, 12, is a typical American kid. She likes to hang out with her friends,
shop at the mall, go to movies, and read books. But while her buds are busy
peeking through the latest Harry Potter, Farrah’s reading selection is
something very different
So
what’s her goal for seventh grade? To become a first-time stock market
investor. She's taking notes, plotting strategies, and will soon take the
plunge. She just has a couple of books to finish first. "I have no target
date to start investing, but I want to finish reading these investment books
first."
Banking
on Buck$
Farrah
isn't certain which stocks she'll stuff in her soon-to-be start-me-up portfolio,
but she's pretty stoked about "any toy stock" and AOL. "I want to
have more money than just my allowance," says Farrah, who is an honor roll
student at Mid-City Alternative School in Los Angeles. "I was watching this
TV show called Popular, and they had a CEO on the program that was
teaching kids how to invest and which stocks to invest in. The show influenced
me to become an investor."
Farrah's
mom and dad, Karen and Daniel, are A-OK with the profit plan. “My parents say
it's a good way to learn how to handle money. My Dad's going to tell me how, and
we'll go through a broker."
Watching
the Trends
Farrah
plans to let her investment ride until she sees a return on her money. She
knows the market has ups and downs, and there's always the potential of it
blowing up in your face, especially with a small portfolio. “I watch the news
and see patterns in how the stock market changes. One day it's high, one day
it's low, and one day it's in the middle." Winning the ultimate financial
trophy takes lots of patience, study, and determination.
"I'm
trying to see if my money will hold up instead of going down. If it does go
down, I'll just wait and see,” she says. “If it goes up, I'll be happy.”
Before
she heads out for more research, she has some advice for other would-be
investors: "If you want to invest, you should go ahead,” says Farrah.
“Go to the library and get some books. Do your research. And watch the news to
see how the market is doing."
Ready
for the Plunge?
Think
you’re ready to dive into the investment world? Before you get swamped with
too much complicated info, remember these simple steps.
1.
Save more, spend less! Sure
it's fun to buy stuff, but it can be more of a kick to watch investments grow.
In 10 years, you won't care about the $500 wardrobe you bought last month. But
the same $500 invested at 12 % will be worth $1650.
2.
Look for money to invest. Start
putting at least half of your allowance, paycheck, birthday, babysitting, and
lawn mowing cash into a savings account.
3.
Consider your options. As
your savings account builds, study your opportunities in U.S. Savings Bonds,
money markets, CDs, mutual funds, and individual stocks. Ask your parents for
advice, surf the net, and visit the investment specialist at your bank.
4.
Make investing a habit. By
investing regularly — monthly if possible — your portfolio will grow.
You don't need a huge chunk o' cash to begin. You simply need the wish to make
it happen.
5. Stick with it! Yes, the market will go up and down, but don't panic. Invest for the long-term — at least five years. The longer you let your money grow, the more cash you'll stash for the future.