Some trading questions -

[Kruser6]

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]

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]

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]

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]

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]

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]

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]

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

 

[Fishhead]

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+]

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+]

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]

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]

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]

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]

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]

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

 

[TheFalls]

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.