If you are young, take risks.  The more risks you take now, the more rewards you’ll be able to enjoy in the future.  This doesn’t mean getting to the point of gambling, it just means thinking more in terms of a higher return.  You need to figure out what amount of risk you are able to take and only go that far.

Stocks are riskier than bonds.  If you are nearing retirement, you should have a lot of your investments in bonds.  Since you are young, you can have most in stocks.  If you are in your 20s, 100% in stocks is actually a good idea if you want to earn a lot.  Remember, it’s not just stocks vs. bonds that makes the difference in risk.  You can invest in risky stocks and conservative stocks.

Older, more stable corporations such as Disney are less risky, but you won’t earn as much money.  They also tend to give more in dividends.  These are better for older people, but you can include some in your portfolio for some stability if you like.  When you learn to invest, you must keep these things in mind.

There are many other investment types out there.  It’s hard to say that one specific type is better for a younger person than another and which are the best investments.  Age-wise it’s just a matter of risk.  You take more risk when you’re younger.  If you want to invest in foreign currency instead of stock, go for it.  Just make sure you have a great strategy and plan set up to follow.  Learn to invest properly, follow your strategy, invest more money, never give up, and you have a recipe for success no matter what your age.

Related posts:

1. People Should Not Overlook The Risk In Stocks
2. Don’t Forget Property Investments in Your Portfolio
3. Examining High Return Investments

If you’re looking for cheap stock trades you could always look at buying way out of the money (OTM) options or puts.  On a really volatile stock you could buy options for .05 per 100 ($5 per option plus fees) and the minimum they could move is a nickel so you lose it all or double your money.   Trading the Nasdaq index (QQQQ or “the Qs”) was very popular in the late 90s early 2000. 

Your other option is to buy one share of a cheap stock, but with trading cost this is only worth it if your buying a gift for a friend, not as an investment.

The bottom line is even with cheap stock trading online cheap stock trades just aren’t cheap.  Cheap stock trading just doesn’t exist you have to have enough money to handle the ups and downs, market maker spreads, commissions, taxes, and make it all worth your time.  I’m very hard on these costs because I think most new stock market investors overlook these and they don’t realize how much they eat into their returns.  I want you to win.  If you’re looking for a way to invest your five dollars please put it in your savings account, pay it on a debt, or put it in a retirement account and when you’ve saved your first $1000 then it’s time to start looking how to trade.

Related posts:

1. The Basics of the Put Option
2. Build your own Forex Trading System
3. Succeeding In Stock Trading Strategies