1. At age 16 start putting a set amount every week or two into ETFs (Exchange Traded Funds) that track the whole stock market. The low-cost Vanguard VTI fund is great for this. Use a free site like eTrade to buy a share of VTI when you have enough money transferred in.

99% years of the time you will not beat the average return on the whole stock market by picking individual stocks. Warren Buffet proved this when he bought index funds and out-earned an actively managed account.

2. Keep putting in a set amount regardless of how the market is performing. If the market goes up, good for you. Your portfolio is up. If the market is down, good for you. You get to buy stocks more cheaply. If the market is way down, good for you. You’re young. The market is going to average a 6% return yearly over your lifetime. Things will and do get better.

The only time you should change your weekly investment is when your salary goes up or down. Adjust your amount accordingly.

3. Turn on DRIP. Activate the Dividend ReInvestment Program with your brokerage account. This will insure that all the stock dividends you receive are reinvested. Compound Interest is one of the most powerful forces in the world. Make sure it is working for you and not against you (in the case of debt).

4. Ignore the stock market for 50 years. Go for a walk. Smell the roses.

5. Profit! If you invest $2000 a year when you’re 16, increase it by 3% a year for 50 years, and get a 6% yearly return on the market, you will have $1,000,000 at age 66.

Note: I am not a professional financial advisor. The above statements are made in good faith, to the best of my knowledge as an amateur economist having an MBA with a financial emphasis.