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19 years old and looking to invest in Tesla in Canada.

Hey guys I'm 19 years old and have saved up quite a bit of money over the years (23k). I'm super excited about Tesla Motors and Solar City, the thing is I have no clue on how to buy stocks. I just started to do some research but I thought maybe I'll sign up to the forums and ask you guys, since most of you are probably have experience in stock market business. Even though the stock price is high right now, I'm willing to wait and see if it drops. Im from Toronto Canada, so if there are any fellow Canadians in here that could help me out, I'd greatly appreciate it. Thanks

Look into what a diversified portfolio is and how to spread your risk. Being young, it seems "smart" to invest in a high-flying stock but beware of becoming "in love" with a stock. Those who do the best in the market invest without emotion.

Your bank can serve as a broker (through affiliated or subsidiary companies), but is likely to balk at your intentions.

Hi Terry, I have done extremely well trading TSLA & SCTY
If you want some info you can contact me at
jean.guenette@sympatico.ca

There is a lot of info I could pass on to you.

There is several investor threads at Tesla Motors Club too. I know there are some Canadians that frequent that forum.

When you say "have no clue on how to buy stocks", do you mean you literally don't know how to go about purchasing stocks? Or do you mean that you don't know about the strategies, etc?

I'mnot familiar with what it's like in Canada, but do you have a company such as Fidelity, or online companies like ScottTrade, eTrade, etc? It should be fairly simple to open an account. And it's generally pretty simple to buy and sell stocks in a simple fashion (I want to pay $x price for a stock or I want to sell my stock at $x a share). There are more advanced trading options, but they're not necessary to learn when you're just getting started.

These companies have consumer businesses and should be able to help you set up an account.

Great job saving $23k btw. That's awesome. As others mentioned, don't put too much only into Tesla and Solar City unless you're willing to gamble and/or you are okay with leaving it there for a long term.

Terry, here are some of my tips, learned from plenty of successes and mistakes over my last 30 years of investing. First, be careful not to confuse trading with investing. Trading is about short term buying and selling. It's speculation. For most people, trading is like gambling, and in gambling, most gamblers eventually lose. There's too much going on that is outside of your control. Traders spend a lot of time looking at charts. Because a lot of traders use the same rules when looking at charts, charts often work. But charts also don't work reliably. They're a tool, and even if you're not a trader and you're not speculating, charts provide good information so try to learn about them and the theory behind different patterns (it's fun!).

Investing is about taking a stake in a company and holding it over a longer period of time. When you invest for the long term, you don't have to be right about the short term. Invest in a company that has high growth prospects, great management with great vision and proven ability to execute, great defensible (not easily copied) technology, moats (barriers to competitive entry) and a company that is positioned to take advantage of multiple converging trends.

Pay attention to valuation. Share price is less important that ratios such as PE, P/S and EPS. Companies with high growth and high expectations typically have and deserve higher PEs and P/Ses. Because their expectations are higher, the stocks are riskier because they're prone to high volatility if expectations change.

Listen to earnings conference calls. They're quite possibly the single best source of information about a company. You'll also learn to form a judgement about the quality of management, their vision, and their ability to execute.

Read the financial statements, such as the 10Qs and 10ks. Learn how to read a balance sheet. Learn about assets, liabilities, and stockholders equity. Learn to read an income statement. Learn about cash flow.

Study the competition. The more research you do, the greater the confidence you'll have in a company.

Read business magazines (I grew up reading Forbes and Fortune for fun). Reads stories about business strategies that worked and that failed. Study multiple industries. You'll be surprised what you can learn from successful companies and successful business managers in industries that might not even interest you. Someone interested in the computer chip business can learn from the stories of businesses selling soda and potato chips. You can learn from everything. The more you learn about business, the more successful and well-rounded you'll be as an investor.

Diversify. Don't put all your eggs in one basket. At your age, you can afford to take greater risk, but don't gamble.

If you can buy and hold for four years, I think you'll do well with TSLA. It'll take intestinal fortitude, though, to stand firm in all the wild ups and downs.

Avoid "full service" stock brokers. They make money when you buy and sell. They just want you to trade. Use a discount broker instead. Charles Schwab or TD Ameritrade (Canadian company) are options.

Good luck!

wow, thank you guys for your help. I basically didn't know about how to go and purchase stocks. I called Royal Bank of Canada (my bank) and they basically said that I have to have an equity of 15,000 because if I don't then I have to pay $25 quarterly and $30 per transaction, which seems like a lot.

I'll look into the online websites and do more reading. I understand when you guys say not to invest into one company but I just have a feeling Tesla will succeed and if they don't, it'll be an experience. Many years ago I told my parents to invest into Apple when the stock was just $70 dollars. Obviously they didn't listen to me and It's something they regret not doing. Since I'm older I have the ability to do whatever I want and handle the repercussions. There are also other companies that I'm looking to invest into, not just Tesla. But Tesla is where I want to start.

Again I appreciate all the help! thanks guys!

Read up a bit on 'dollar cost averaging'. It amounts to spending the same $$ every X weeks, regardless of price. When the price is low, you get more shares. When it's high, you're lifting the average value of your portfolio. Resist the urge to fiddle with the routine. The rigidity of the schedule insulates you from "madness of crowds" effects.

Wow... saving up 23K for a 19yo is pretty damn impressive!

But if you want to buy some Tesla stock, shop for an online broker. Here's a good place to compare the differences: http://www.nasdaq.com/investing/online-brokers/

Find the one that meets your needs and sign up.

Then buy some Tesla shares.

I'm not going to dispense with investing advice since that's something you'll have to learn on your own over the years thru study and experience. Good for you, though, because a good place to start is when you're young.


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