Some trading questions -

Kruser6 · Jan 30, 2007

Ok, so I wanted to get in the stock market with just a little bit of money. I have about $1,500 sitting around that I wanted to more or less just practice with in the stock market.

1.) Who do I sign up with and how do I get my money there? Is it hard to open up an account with a site like Etrader or one of those? Also, do they charge quite a bit for a trade?

2.) How should I diversify. . .or should I? Should I split it up into say 3 different stocks for $500 a piece, or just make one move on a stock?

3.) What kind of stocks should I look into? They would have to be cheaper stocks to be able to get any amount of shares.

4.) Anything else I need to know? Something you would explain to someone just starting to get into the stock market?

EasyMoney · Jan 30, 2007

I'm pretty new to the market myself, but I like scottrade. They are one of the cheapest. As far as the price of stocks. IMO it really doesn't matter. Stocks that are priced higher seem to move more than lower priced stocks. For example Google can go up or down $20 in a day, so your 1 share of google would still give you the same return as 25 shares of a $20 stock that moved .80 cents in a day.

heart222 · Jan 30, 2007

Hi Kruser. I think the online firms all about the same. Would think you would do better with 300 shares of a $5.00 stock or 150 shares of a $10.00 stock little better quality. regards heart222

SSI · Jan 30, 2007

kruser, thats the difference in stocks and commodities......... stocks take much more money.......

with only $1500........ you might as well put that in a good growth stock mutual fund..... until you save more money.......

but if you want to just play around........

go to TDAmeritrade or Etrade or Scottrade........... sign up, make your deposit........ you can then buy stocks......... you cant really short (sell) stocks first with this small of an amount....... thats another huge advantage to trading commodities.......... you can buy or sell first, makes no difference........... with buying stocks, you can only make money if the price goes higher........

now if you deposit with a stock brokerage online company..... i suggest for you to watch 2 TV shows daily............ Mad Money with Jim Cramer and Fast Money with the real traders that they feature..... eric bolling, tim strazinni, jeff macke and adam (forgot his last name)... these guys are pretty good.....

its just going to be next to impossible with only $1500 to make any kind of money, especially if you try and trade it...........

those shows are on CNBC...................... here is another tip for you..

go to the CNBC website and register for the stock portfolio challenge...

trade a simulated $1,000,000 trading account..... grand prize is 1 million..... 5 weekly winners of 10k each, also given away...... this may be a learning experience for you, sorry to bust the bubble.......

seriously, watch the 2 shows, play in the contest, read all you can, open your online account and get a 2nd job to save and save.......... 1 year from now, you may be a very good stock trader......

viking611 · Jan 30, 2007

believe you are young kruser.....put that $1500 into a ROTH IRA....find a growth fund to put it into. do that every year for next 30. Put the max in if you can!!

Fishhead · Jan 30, 2007

viking611 said:
believe you are young kruser.....put that $1500 into a ROTH IRA....find a growth fund to put it into. do that every year for next 30. Put the max in if you can!!

Sound advice..........

Also, make sure you have at LEAST 3-6 months living expenses saved up on the side at all times...........be it cash on hand, a savings account, or something you can quickly liquidate.

With $1500, forget trading for now..........

-FH-

DayTraderNation · Jan 30, 2007

Viking or fish, can either of you recommend a good growth fund for a roth-IRA? Maybe one you use now or know someone who does!

I would appreciate the info!

thank you

GreenDoberman · Jan 30, 2007

Check out Sharebuilder. It will teach you to invest regularly and keep it there. Discipline is half the battle.

Fishhead · Jan 31, 2007

DayTraderNation said:
Viking or fish, can either of you recommend a good growth fund for a roth-IRA? Maybe one you use now or know someone who does!

I would appreciate the info!

thank you

I like VANGUARD and what they offer.........check their website for details on various funds and fees.GL,-FH-

LineTamer+ · Jan 31, 2007

Solid Mutual Funds:

MUHLX All Cap Value
AGTHX Large Growth
AEPGX International Stocks
KDHAX Large Value Stocks
CRGRX MId Cap Stocks
RYVPX Small Cap Stocks

With 1500 i would do Roth IRA into MUHLX Muhlenkamp Fund.. open the account directly with them...

Tamer

LineTamer+ · Jan 31, 2007

Fishhead said:
I like VANGUARD and what they offer.........check their website for details on various funds and fees.GL,-FH-

Vanguard is a solid no-load fund family with low expense ratios, but there are funds whose performance is worth paying a little more in fees...for that added return. The majority of Vanguard funds have mediocre performance that comes with the below avg fees.

heart222 · Jan 31, 2007

think you might want to ope naccount at a brokerage firm so you can switch from one fund to another periodically as opposed to opening it in one mutual fund family. i think the roth concept is terrific. I felt that your comment wasthis was sort of money available to work with shorterterm if thats the case use one of the firms mentioned and then try and buy an oil company and mabey a bank or retailer. regards heart222

joker46n2 · Apr 8, 2007

I second the the recommendation for share builder. It is a great way to get into the market. If you keep putting money aside now then later you will have some real money to play with. After watching the stocks in the share builder account and moving them around from time to time that will be a good start.

heart222 · Apr 10, 2007

one of my sons uses sharebuilder he is very happy with it. if your going tobuy a mutual fund for long term look for a midcap value. that part of the asset classes seems to have the best long term consistancy. try moringstar for fund rankings. regards heart222

CookieNBabe · Apr 10, 2007

Kruser6 said:
Ok, so I wanted to get in the stock market with just a little bit of money. I have about $1,500 sitting around that I wanted to more or less just practice with in the stock market.

1.) Who do I sign up with and how do I get my money there? Is it hard to open up an account with a site like Etrader or one of those? Also, do they charge quite a bit for a trade?

2.) How should I diversify. . .or should I? Should I split it up into say 3 different stocks for $500 a piece, or just make one move on a stock?

3.) What kind of stocks should I look into? They would have to be cheaper stocks to be able to get any amount of shares.

4.) Anything else I need to know? Something you would explain to someone just starting to get into the stock market?

Kruser, I would advise any newcomer to the market to first learn what the drivers are, and then only stick to buying the Indices unless you really are sure of some individual companys financials, and future. The Dow, or Nasdaq (symbol QQQQ) or S&P500 (symbol SPY) are good ways for a newbie to be exposed to the market, and yet be insulated from potential high risk of having all eggs in or three baskets, when you can instead be diverse, and involved in many.
My favorite move lately is playing the US Oil Fund on the American stock exchange (symbol=USO). Since you know there will always be demand for the commodity of crude oil, the trader must only be alert to how the futures market trades on the COMEX, and then go long or short, accordingly. I grind out an average of 2.74% per month over the last 15 months doing this.

Learn one thing about the markets, and learn it well, and that is all you need. Too many people want to be proud of their opinions on many things, and fall into that trap of their own ego.

The few people that I know who constantly beat the market over the long haul are decisive individuals with no ego at all. They admit mistakes, take the blame, and calmly move forward.

Trading markets is the ultimate challenge of yourself, and your faults will come to light. Dont get mad at them, just see them, and realize there is tremendous advantage and value in seeing them. Only then will you have any edge in free-market trading.

worldwidekid · Apr 16, 2007

what would be the minimum amount of $$$ one need to start trading stocks to make it worth while?

TheFalls · Apr 16, 2007

world wide kid said:
what would be the minimum amount of $$$ one need to start trading stocks to make it worth while?

$75K if you use a real life person for a broker with high commissions.

$50K to be effective while actively trading stocks.

$25K is the minimum balance you must have to "daytrade." Daytrading means you are buying and selling more than 3 stocks in a week.

I think the most you can go "on margin" with is 4-1. So, essentially, you could trade $100K worth of stocks on a $25K deposit.

Some trading questions -

Search

Kruser6

Rx Senior

EasyMoney

New member

heart222

New member

SSI

New member

viking611

www.youtubecom/hubbardsmusic

Fishhead

Active member

DayTraderNation

Member

GreenDoberman

Rx. Senior

Fishhead

Active member

LineTamer+

And thats why they play the game.

LineTamer+

And thats why they play the game.

heart222

New member

joker46n2

New member

heart222

New member

CookieNBabe

New member

worldwidekid

keeping that pimp hand strong

TheFalls

Their undisputed masterpiece is "Hip to be Square.

Forum statistics

Share this page