I’m 16 and really interested in investing. I’m not old enough to start buying stocks but have been practising by helping my Dad to pick companies for his fantasy fund in The Telegraph’s stock picking competition. I’ve done quite well and have been among the top 500 players at times.
I want to learn more and even decided to go along with my Grandma to one of her investing club meetings where she and her friends talk about which stocks they’re buying. At first I just invested in companies I knew, like drugmaker AstraZeneca. Since then I’ve started reading about stocks online and in the newspaper and I’ve done better and better.
I’ve just started college and am studying sports science but want to continue learning more about the stock market in my spare time. I’ve got a cash Isa with about £1,000 in that I’d like to invest when I turn 18.
Opportunities to learn about investing at school are not great. I wanted to do GCSE business, but it got dropped because the teacher left. My dad did some research online and found an app where you can invest in contracts for difference when you turn 18, but I don’t know if that’s what I’m after. Where should I look to learn more about investing?
Dawson Rogers, Banbury
You’re absolutely right – contracts for difference are definitely not a good place to start learning about investing. They are very risky and more than three quarters of people, some of whom will be experienced investors, lose money on them.
It sounds like you have already been savvy enough to realise this and have adopted a good strategy by investing in what you know. Understanding a company’s business model before you buy its shares is very important, as it will help you to see whether it is doing well or not.
If, for example, you invest in sportswear retailer Nike and suddenly see all of your friends ditching their Nike trainers for a new brand, you might think about selling.