Re: Phatima1 becomes an entrepreneur
phatima, buying selling stocks with a $100 or even a $500 bucks is not a worth while effort for two reasons. One that the fees involved in trading stocks will cut into your profits that is if you make a profit, unless you hit a jack pot and buy some junk stock for $2 a piece and it sky rockets to $20 or something. Secondly, the amount of time it takes to investigate a company, like going through their 10-k statement and just reading online analyst reports is not worth the time or the return on the money. For that you should use fake money where you and your Dad can use an Excel sheet or something to keep track of stocks you would purchase if you had like a $100,000 or something. It will be fun to see if you do well or your Dad.
For a $100, you should invest in some sort of commodity or retail. You know, if you think at your school people would love to have a certain kind of chocolate during lunch break and you can buy it cheap at a whole sale shop like Costco or Sams, then you should try to buy it cheap and sell it high. But don't invest all of your $100 in it. Such retail business teaches you a lot more about running a business, about inventories, profit margin, bargaining, importance customer service and cash flow than stocks would ever will.