I'm very new to stock/trading; in fact, I've never done it before and would like to get in on it. Currently I just setup an account with Scottrade, and, while I hear both negative and positive results with them, decided they would be OK to deal with as I do not plan on making a lot of transactions -- maybe a couple a month if that. I have some questions I hope you can answer:
-- How do I buy/sell stocks via Scottrade? I didn't receive any login information yet, as I just signed up. I take it I will have to use their "Scottrader" tool that allows me to buy and sell stocks? When I login to my account at scottrade.com, will it tell me what stocks I've purchased and provide information relating to that stock, etc, so I can keep track of all my shares?
-- *CAN* you purchase penny stock online via Scottrader or do you need to call it in and talk to a broker to set everything up? I read Scottrade doesn't let you purcahse them online if it's a penny stock.
-- Could you tell me exactly what I would need to say to the broker if I have to call to purchase penny stock? Would I have to say like "Hi, I'm interesting in buying stock for XXXX and would like 100,000 shares." or what? I have never talked to one before.
-- Can someone explain "limit orders" and "market orders"? I think limit orders means it will not buy your stock until it reaches the #, example: $0.0028.. Could you tell me exactly what would be a good limit # to use and find out.. what information do I need to look at and what information should I evaluate to come up with the right number?
-- Are there any fees when purchasing penny stock besides the $15 for the "limit order"? What else will I be paying each time I buy shares?
-- If I *DO* make money and would like to have it, how do I sell my stock? Would I need to call the broker since it is penny stock, or could I do it online? What would I say to him in regards to selling it? Do they sell quick? How do I know how much to sell it for?
That's all for now, I know they probably sound very beginner, but I'm very eagar to learn. Please help.
posted
I am a beginner also. I have been using Scottrade for about two months, so maybe I can answer your questions regarding it. When you put your ticker on the Scottrade streamer, next to it will be buy and sell symbols. Or you can click the trading tab at the top of Scottrade page once you are already logged in and it will bring you to a trading screen. It is all pretty much self explanatory. When you have logged in it will tell you what recent tranactions you have made. You can also hit account info. and then history and it will tell you all transactions you have made. You can purchase penny stocks as long as they arent pink sheets. Pink sheets must be called in and are $22 per trade. I havent called in an order, but I think that you are on the right track. You are right about limit orders. ONLY use limit orders with penny stocks (At least $5 and under) I have been burned a few times. When you purchase any stock under $1 it is $12 + 1/2% commission. To sell your stocks, it is basically just the opposite of when you buy it. Once you log in to Scottrade, venture around and get to know it. There are many 'help' tabs that will tell you what you need to know. I hope that this helps you out as we have all been there.
Posts: 15 | From: Lexington Park, Md | Registered: Mar 2004
| IP: Logged |
posted
Hey RG: Based upon your wording, I assume you haven't logged into your account yet. When you opened the account, the broker should have given you a card with your account number and password on it. When you go to Scottrade.com, click into client login and put in your account # and password. Before you press login, you will probably want to save the client login page in 'my favorites' so that you don't have to keep beginning at the home page. When you access your account, you will see several boxes: the top one will show youR account balance, based on the previous day's close, and the bottom one will show you the account's real-time value. You can not buy or sell anything until your account is set up, so if you haven't received you #/password yet, you should call them and get it. Ryan covered the screener board for you. I would just add that after you set it up the way you want it, make sure that you press 'save layout' so that you don't have to keep redoing it after every time you log off. I usually right-click on the tickers of the most active stocks on my screener board, and then press 'get chart', go into the 'tools' box on the chart and put up the volume indicator tool as well. As you get into trading more, you will understand the significance of watching the volume of a stock. There are other customizable features as well- play with it a while and you'll find it to be quite easy to navigate. As Ryan said, pink sheets need to be called in. The way you can tell which ones they are, is by placing the symbol on the streamer chart: they will have no bid or ask price listed. What I used to do when I bought stocks over the phone, was call my broker and tell him that I wanted to get a stock quote. He would ask me what the ticker symbol is. I would tell him. Sometimes he would also ask me if I had an account with them, and I would say yes. I would tell him my account number, and he would give me the quote, and I would tell him that I want to place a buy order of XXX (number) shares of XXXX (repeat the stock ticker symbol) at the limit price of XXXX. A limit is important to use with OTC/BB stocks, because you can get burned by placing market orders (buying at the current price) if the stock spikes up when the order is placed, or selling at the market price if it dumps down when the order is placed (neither of which are rare occurences in pennyland.). If the order goes through immediately, he/she will say "You bought XXX shares of XXXX at the limit price of XXXX". If it doesn't, he/she will ask you how long you want to leave the order open: you can leave it for the day, or opt for GTC (good 'til canceled: good until you decide to cancel it out). The broker will then verify that you now have an open order to purches XXX shares of XXXX at the limit price of XXXX. An open order isn't a bad thing; because of the way these stocks swing, as long as it is within reason, it should fill sooner or later. Also, be careful if you opt to use the Limit and/or GTC, or to change something on an open order: sometimes there is a lapse in time when you cancel them, at which time they may fill without your realizing it. Just remember that you're paying that broker a commission to buy that stock- don't think of him as an interrogator- think of him as a college educated drive through attendant. I can't tell you what limit price to place on a particular stock- you have to try to decipher where you feel that stock is finding upward support- for me to try to pick your buy and sell points would be unfair to you. Just look at the stock, chart its momentum, and figure out what you feel comfortable spending on that stock. If you are running Windows, it would be to your advantage to look in your start menu for a calculator and have it minimized for easy access. Just don't forget to factor in the commission ($12 online/$22 by phone- plus .50 per $100) before placing the order. Your fee for an online pennyland limit order with Scottrade will be $12 plus .5% (50 cents per $100). If I am not mistaken, there is also a very small SEC fee incurred when selling (a few cents). If you want to sell a stock that you purchased online with Scottrade, you can sell it the same way as you bought it(provided the company is still trading at the time when you want to sell it). If you had to call the buy order in, then you will have to do likewise when you want to sell that stock. Again, use the same formula when selling by phone as you do when buying by phone- he/she works for your commission- don't ever feel intimidated by, or inferior to, them. The speed of a stock sale depeds on several things: how realistic your limit is, if you use a limit (you have to in pennyland), the volume that a stock is trading, etc. On the ticker, you will see several sets of price numbers: the 'last' column, the bid column, and the ask column. While all three are important to track, it is important to realize that the bid will always be lower than the ask. That's because the bid is what you can sell the stock for at that moment- the ask is what you must pay for it if you want to buy it at that moment. Watch the charts, learn trending patterns, and use DD. You will have to 'pay your dues' by getting scraped up on a few stocks (it's inevitible), but hopefully the info from Ryan and myself will help to buffer your transition into the market. GLTA
Posts: 339 | From: Clearwater, Fl | Registered: Mar 2004
| IP: Logged |
quote:Originally posted by Zeker: Hey RG: Based upon your wording, I assume you haven't logged into your account yet. When you opened the account, the broker should have given you a card with your account number and password on it. When you go to Scottrade.com, click into client login and put in your account # and password. Before you press login, you will probably want to save the client login page in 'my favorites' so that you don't have to keep beginning at the home page. When you access your account, you will see several boxes: the top one will show youR account balance, based on the previous day's close, and the bottom one will show you the account's real-time value. You can not buy or sell anything until your account is set up, so if you haven't received you #/password yet, you should call them and get it. Ryan covered the screener board for you. I would just add that after you set it up the way you want it, make sure that you press 'save layout' so that you don't have to keep redoing it after every time you log off. I usually right-click on the tickers of the most active stocks on my screener board, and then press 'get chart', go into the 'tools' box on the chart and put up the volume indicator tool as well. As you get into trading more, you will understand the significance of watching the volume of a stock. There are other customizable features as well- play with it a while and you'll find it to be quite easy to navigate. As Ryan said, pink sheets need to be called in. The way you can tell which ones they are, is by placing the symbol on the streamer chart: they will have no bid or ask price listed. What I used to do when I bought stocks over the phone, was call my broker and tell him that I wanted to get a stock quote. He would ask me what the ticker symbol is. I would tell him. Sometimes he would also ask me if I had an account with them, and I would say yes. I would tell him my account number, and he would give me the quote, and I would tell him that I want to place a buy order of XXX (number) shares of XXXX (repeat the stock ticker symbol) at the limit price of XXXX. A limit is important to use with OTC/BB stocks, because you can get burned by placing market orders (buying at the current price) if the stock spikes up when the order is placed, or selling at the market price if it dumps down when the order is placed (neither of which are rare occurences in pennyland.). If the order goes through immediately, he/she will say "You bought XXX shares of XXXX at the limit price of XXXX". If it doesn't, he/she will ask you how long you want to leave the order open: you can leave it for the day, or opt for GTC (good 'til canceled: good until you decide to cancel it out). The broker will then verify that you now have an open order to purches XXX shares of XXXX at the limit price of XXXX. An open order isn't a bad thing; because of the way these stocks swing, as long as it is within reason, it should fill sooner or later. Also, be careful if you opt to use the Limit and/or GTC, or to change something on an open order: sometimes there is a lapse in time when you cancel them, at which time they may fill without your realizing it. Just remember that you're paying that broker a commission to buy that stock- don't think of him as an interrogator- think of him as a college educated drive through attendant. I can't tell you what limit price to place on a particular stock- you have to try to decipher where you feel that stock is finding upward support- for me to try to pick your buy and sell points would be unfair to you. Just look at the stock, chart its momentum, and figure out what you feel comfortable spending on that stock. If you are running Windows, it would be to your advantage to look in your start menu for a calculator and have it minimized for easy access. Just don't forget to factor in the commission ($12 online/$22 by phone- plus .50 per $100) before placing the order. Your fee for an online pennyland limit order with Scottrade will be $12 plus .5% (50 cents per $100). If I am not mistaken, there is also a very small SEC fee incurred when selling (a few cents). If you want to sell a stock that you purchased online with Scottrade, you can sell it the same way as you bought it(provided the company is still trading at the time when you want to sell it). If you had to call the buy order in, then you will have to do likewise when you want to sell that stock. Again, use the same formula when selling by phone as you do when buying by phone- he/she works for your commission- don't ever feel intimidated by, or inferior to, them. The speed of a stock sale depeds on several things: how realistic your limit is, if you use a limit (you have to in pennyland), the volume that a stock is trading, etc. On the ticker, you will see several sets of price numbers: the 'last' column, the bid column, and the ask column. While all three are important to track, it is important to realize that the bid will always be lower than the ask. That's because the bid is what you can sell the stock for at that moment- the ask is what you must pay for it if you want to buy it at that moment. Watch the charts, learn trending patterns, and use DD. You will have to 'pay your dues' by getting scraped up on a few stocks (it's inevitible), but hopefully the info from Ryan and myself will help to buffer your transition into the market. GLTA
posted
I have an account with Ameritrade and as long as I trade on-line I only pay $10.99 coming and going. It doesn't matter if I sell 100 shares of XYZ or a million shares XYZ it's a flat $10.99 commission and I have access to trade ANY stock.
Using Scottrade that $.50 on the $100 could add to a substantial amount. You may want to check out Ameritrade.
Like yourself, I am new and at first I was so intimidated. In the beginning I felt like I was talking to the IRS because I could ask 2 reps the same question and get 2 different answers. One rep screwed me regarding an Account question to the extent I was awarded 10 additional free trades. If ever you don't feel comfortable with your 'answer' call back.
Hang in there, trust me you will reach a comfort level.
Good luck! Veda
[This message has been edited by Veda (edited March 30, 2004).]
posted
Thank you for the compliment- it means a lot to me coming from someone as respected and respectable as you. I also agree that the best online broker overall is Ameritrade. I opened my account with Scottrade because they are somewhat competitive, they have an office within 5 minutes from my home (I can drop funds off today, and they will be in my account tomorrow pm), and my other broker was much more expensive regarding OTC/BB stocks. It is worth looking at Ameritrade and considering which brokerage is right for your individual needs, RG. I still use my other broker for NM trades, have been with them for years, and am very happy with the service that they give me for my money. They answer my questions immediately, I have built a strong personal relationship with them, I have never felt abused by them, and most importantly, I trust them. I wish that I could say the same things about Scottrade, but at least I can trade pennys for cheap with them.
Posts: 339 | From: Clearwater, Fl | Registered: Mar 2004
| IP: Logged |
posted
A couple more tips for you, RG: After you set up your streamer, it is a good idea to save it on your online toolbar. This way you can open it without having to go through the login process. You can buy and sell from your streamer without having to go through the login page. If you want to track over 20 stocks with Scottrade's streamer, you will have to create a second list. What's nice about this, however, is that all you have to do once you opn the first list, is click on the online toolbar icon again, and it will open another streamer. Just switch the second streamer to your other list, and you will be able to track both lists, although due to overlays, you may have to point and click on one in order to bring it into the foreground so that you can see all of the symbols on it. The last tip is to do your DD (due diligence)- that is what is going to control your destiny in the market more than any thing else- put your emotiion aside, and before you sell something in order to chase after something else, make sure you wouldn't buy it at the level you are going to sell it at- otherwise you might as well spend your savings in Vegas, because your broker will end up making more money off of you than you will make for your self. When you learn to overcome your emotions regarding the market, you will be able to capitolize on the fact that many people aren't able to do likewise.
Posts: 339 | From: Clearwater, Fl | Registered: Mar 2004
| IP: Logged |
posted
RG ... STOP!! .. dont buy or sell any stock yet... i hope im not stepping out of line but i think you need to read a book or 2 on trading if you dont know what a Market Order, Limit Order and other stocktrading basics.. it will save you alot of money and aggravation in the long run...they will teach you the basics as well as more advanced trading techniques and help you avoid mistakes like in the questions you asked in your post... the books (you can buy them on Amazon.com pretty cheap used or on other sites like half.com, ebay etc.) im reading that i recommend are:
1. How To Get Started in Electronic Daytrading by David S. Nassar
2. A Beginner's Guide to Short-Term Trading by Toni Turner
I'm sure other people can recommend other books but so far to me those 2 are the best for beginners.. they are written in clear concise easy to read format.. and if you dont understand anything in them you can always ask specific questions here on the board from your readings in the books.. if you like we can also correspond in email.. i already correspond with 2 or 3 other Board members... As for Scottrade.. i almost opened a account with them till other people here on the board informed me of their faults.. such as $22 for pennies and you can only trade by broker assistance (calling the broker) ... Scottrade is cheap in terms of market orders ($7) .. but otherwise there other commissions and fee's add too much to your trades in the long run in my opinion... Ameritrade is a little more reasonable.. flat fee commission for both Limit & Market orders... as for me.. someone recommended www.lowtrades.com and thats where i'll probably be opening my account... by the way its probably best if you swing or position trade and not daytrade so you get your feet wet and learn the ropes...
posted
Thanks for all of your guys answers. I will take all your advice. I have some more questions however:
Say I'm looking at Level II quotes for shares I currently own, and it's as followed:
1x.45 1x.50 1x.55 1x.42
What price would/should I sell it at? Can I sell it at any price? It should be around the above numbers if I want to sell it quickly, no? That would be what everyone is willing to pay. Or can I sell it at whatever I wanted to, like .70 (which no one would probably, but just using it as an example)?
Also, how do you lose money on penny stocks? Even if it goes under a penny and I bought 100,000 shares at .0035, wouldn't I make SOME money? Even if it's not a lot?
One more - why is QBID a pink and GZFX not? Can't seem to figure out why.
posted
only advice which im sure most of the people here would probably say as well is to READ!! READ!! any book you can on trading if not the ones i suggested.. the ones i suggested explain and teach about Level II screens and how to use it for ur trades.. if you want to sell you make a offer as close as to the market makers offers... then your order will wait in line till its filled... but if you dont know all these fundamentals then you seriously need to read a book on day/swing/position trading because from what i can see you will be losing alot of money... im not being mean just letting you know before you find out the hard way....
Posts: 4669 | Registered: Mar 2004
| IP: Logged |
posted
hey just trying to help.. dont take it personally... but its ur money if u want to blow it away.. knowledge is power and knowledge you dont have (cause you rather not use your most important skill.. READING) .. probably better odds at a craps or roulette table for you.. after you lose most or all of your money do yourself a favor and use your last $10 or less and buy a book (if you dont want to buy a book im sure you can find free tutorials or E books on the internet to READ)... anyways goodluck (im rooting for ya not to lose your money "thumbs up")...
[This message has been edited by Machiavelli (edited March 31, 2004).]
posted
Hey rg I have been trading stocks since 1987, and I personally look up to Machiavelli. Why? Because I know that if he posts something to the effect of "Take a look at XXXX", I know it's worth looking into. How do I know? Because I know he knows what he's talking about. If I was to answer his suggestion with your reply to him, I would most likely be overlooking a valuable tip. As you look around this and other trading boards, you will find many opinions regarding different stocks. Just remember that these are OPINIONS based upon each person's knowledge and/or motivations, because there are bashers and pumpers out there- some of whom are even paid to pump or bash a stock- paid to try to fool you into buying or selling a stock. The only thing that's going to save your a** from the bashers and pumpers, is the quality of your own educated opinion- some people have motives which may not be in your best interest. The only way that you will be able to dicipher their messages, is to learn and live this, and to do your own research in order to either verify or discount their opinions. Machiavelli is an enormous asset to this board- look through the posts and see how much effort he puts into helping others. And just remember this- if you do not understand the market, you are at the mercy of the opinions of others.
BTW what the fizzuckle is "Thanksizzle my shizzlin partnizzles" supposed to mean?
posted
Sure Veda.. if you like we can chat in emails/IMs... i chat with a couple of others in email.. you can email me at Lrsk2000@aol.com ... just put in the subject line in capital letters that its Veda from allstock.com lol ... i dont want to delete it by accident.. or you can give me your email and ill email you <shrugs> dont want to spend too much time in this thread anymore.. but at least he seems to be listening and taking Zeke's advice.. <shrugs> .. anyways ttyl..
Posts: 4669 | Registered: Mar 2004
| IP: Logged |
quote:Originally posted by rg: I do what I want when I want however I want
Just a question Why would you ask for help then make a comment like that? There are lots of people on this board that are willing to help new people( I know that they helped me and continue to do so)If that comment was a joke ok , if not then you should learn to show some respect or find a board that has the same type of people as you. On the allstocks board most of us are interested in makeing money and not getting into crap with posters that have tudes.
Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
| IP: Logged |
posted
POORMAN I wondered about this last week, think it was a setup? You are right about the board, most people are learning and helping at the same time. Works well most of time. VAN
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
| IP: Logged |
quote:Originally posted by VNGNTN1: POORMAN I wondered about this last week, think it was a setup? You are right about the board, most people are learning and helping at the same time. Works well most of time. VAN
Don't know about a setup Van as I see him or her still posting on other threads,could just of been a newbie needing to learn how this board works. I read other boards and that kind of thing seem to be the norm on a lot of them.
Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
