One of the most important tips of buying and selling stocks is to make investment decisions that are not based on emotions. When stocks go up, it is easy to be excited and optimistic. When it goes down, it is easy to be fearful and hesitant. Buying and selling stocks should be decided solely by logic and information that you have gathered. This information can vary from person to person.

Compound Interest is one of the most important concepts of investment, and why so many people choose to put their money in stocks and bonds rather than saving. Investing can supplement retirement and long-term financial stability. What matters is investment is exponential while an annual salary or income is linear. For teenagers and young adults, the profit from long-term stocks and bonds will be strongly significant. The earlier someone invests, the better the result. If teenagers and young adults start investing now, they can provide themselves with exponential growth for their future savings.

Stocks are riskier than Bonds, however, they have a higher reward if investment is successful. Bonds guarantee a profit, and stocks do not. For long-term investment, stocks have a high rate of return. On the other hand, Bonds have less risk and volatility in the short-term.

ETFs are traded like stocks. Mutual Funds are purchased at the end of a trading day based on its net asset value (NAV).

ETFs are based on a simple marking index and observed while Mutual Funds are actively managed by a fund team. They actively buy and sell stocks. Because of this, Mutual Funds have a higher minimum cost to purchase (in the hundreds or thousands).