posted
Hi all. I am new to the boards and to stocks in general. I am very interested in learning the stock market. I ordered today from amazon "The neatest little guide to stock market investing" By Jason Kelly , "How to make money in stocks" By William O'Neil, "Intelligent Investor"By Ben Graham, The Millionaire Next door and Rich Dad Poor Dad. I have an extra $100 I would like to use to get a feel for trading while reading all these books. Would starting in the Penny stocks be a good way to get my feet wet while learning and possibly make a little extra to play with after I begin more comfortable. I am young and don't have much money as I just finished my associates degree and will be going on for my bachelors. I would just like to learn how to invest well so I can retire comfortably. Does this sound like a good game plan?
Posts: 4 | Registered: Jan 2006
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imakmony2005
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posted
RUN AND FAST. Keep reading Ben Graham follow his lead then come back to the pinks once you have money to lose. IMHO
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-------------------- Marty When I was born, I was granted a visitors pass to earth. I will enjoy everyday until it has expired. You should too ;) Posts: 1740 | From: NJ, USA | Registered: Oct 2004
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posted
Don't know where you'd open an account with a hundred...But you can keep reading and learning while you accumulate some capital--which is *not* "money"
posted
Bu, I'm rather new as well but learning quickly. I needed $1,000 to open an Etrade account, I'm assuming other brokers have a similar price range. Make sure it's a thousand bucks you can afford to loose. You will loose it too. Try "Trading for Dummies". Don't follow anyones stock pick advice on this board untill you've followed their picks for a few months first and figured out the friendly traders from the pumpers. Have fun.
Posts: 125 | From: Cincinnati | Registered: Oct 2005
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posted
First... $100 is not enough to trade anything.. you will lose it fast.. whether penny stocks or mainstream stocks ($5 and over per share) ... you need to raise more capital (perhaps sell things on Ebay or a garage sale that you do not need or get a part time job to raise the capital.. the more the better)... at least $500 minimum and that is the minimum bottom line.. $1,000 minimum would be better.. next.. to me the best broker is Choicetrade.com .. no minimum's to open a account, stop/losses on penny stocks and all other stocks, great customer service, your trades settle faster then other brokerages, there constantly updating their service to compete with others etc.. etc.. 2nd.. read alot of books on trading... below is a suggestion of books.. 3rd... i would suggest papertrading but the problem with that is your emotions (fear and greed) will settle in and when you have a stop/loss on a stock you tend not to "execute" the order to limit your losses and let your profits run so I would suggest perhaps if this any a inexpensive software that mimics like your actually trading with real money and will execute your stop/losses when it hits it.. also remember cash is a trading position.. do not trade everyday just to be trading like others do... the best traders dont even trade for days or weeks at a time till they find a stock that fits their criteria... also never suscribe to "services" that give you their picks.. they will tell you about their winning trades but what about their losing trades? ... never take your brokers advice on what stocks to buy or sell and that goes for same on this board.. do not buy on "tips" alone.. do your own research.. you are your best money manager because you care more about your money then anyone else.. stock brokers are nothing but bookies and people on boards are usually just pump/dump artists though not all .. some are genuine about the stocks they post about... but if we were all right about our trades we would be George Soros, Warren Buffett, Jesse Livermore etc.. and not be on boards posting our picks me included... also do you want to be a Trader (Technical Analysis is preferable and more fun) or a Investor (fundamental Analysis is more preferable in combination with TA)? ... world of difference between the two... I prefer trading... the buy and hold for years concept does not yield the best profits and if they do it takes years to do so in most cases (you can put some of your "trading" profits in a interest bearing account or a mutual fund for a rainy day)... I would suggest being a Swing or Position trader.. Position is probably better for beginner's and as you get more experience and your profits build up then perhaps Swing or even Daytrading if you have the knack for it..don't be afraid to sell stocks "short" when you have enough money and a margin account down the road... stocks go down 3 times faster then they go up and is profitable... below is the book suggestions i hope this helps (some can be bought on Amazon.com or other sites used and very cheaply and they can be tax write offs if im correct) :
A Beginner's Guide to Short Term Trading by Toni Turner www.toniturner.com
posted
Thanks everyone for the posts esp Machiavelli I think I'll wait until I get the books in(should be here mon.) I have almost $1000 I can invest but I want to get some reading in first. I just figured I would use $100 to "get my feet wet" and learn the procedure of buying and selling if for nothing else. Also thanks for the list of books. I really appreciate that. I look foward to making many posts/replies here and it seems there is a good amount of people who know what they are doing. Again Ty to all who replied and to anyone else who does.
Posts: 4 | Registered: Jan 2006
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posted
Etrade will cost you a thousand to play. There is another you can get in for 500. I just began at the end of December. Had 1,500. It is now close to 2,500. Hey, how great am I? I am here to tell you it was ALL luck. No brains. Luck. As quick as I made it I can lose it. But that's the point.. do NOT play with anything you can't afford to lose, because lose it you will until you get real smart like many here. And.. not to scare you.. but in pennystocks.. with all the brains and experience you can still lose it. I do, however, have some very good advice for you. And, it's stuff you won't learn in college. Take the time to read the threads on pennystocks. It ain't boring and it IS a tremendous education. Some very smart people here. You will enjoy the ebb and flow of everyday activity and pick up a world of knowledge at the same time. Good luck. Again.. I made a couple of bucks being new. I will probably lose that this coming week. Just be prepared. You will learn without spending a penny.
Posts: 234 | Registered: Jan 2006
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posted
To the new guy you can open an account with ameritrade then wire in 100 bucks. Not sure how much you can make investing with 100 but daytrading you can make a ton.
Posts: 162 | From: Kentucky | Registered: Dec 2005
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posted
I dont think Ameritrade doesn't allow you to open a account with $100 and $100 is certainly not enough for Daytrading much less for any trading... my choice will still be Choicetrade.com though...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
Thanks guys for all the info. I guess I will just wait to open an account. I was thinking of just using the $100 to get a feel for how trading worked through the sites before I made any large deposits. I think I will just wait until I feel comfortable enough after going through those books and these forums before getting my feet wet.
Posts: 4 | Registered: Jan 2006
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They are both free to join and play and are about the same as actually trading i.e. charge you per trade. youngmoney.com starts you with $10,000 and charges $19.95 per trade.
Virtual Stock Market lets you pick ones to join, some are private, some give you $1,000,000 and some only $10,000.
Just a thought for you littlebu
p.s. I use scottrade and it is $500.00 to trade, you can open an account first but can't trade until you add atleast $500.00 to your account
Posts: 144 | From: Minnesota | Registered: Jan 2006
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posted
Thanks Shadow. I was googling looking for a "Virtual Stock Market" but wasn't sure if any of them were good. Thanks for the links
Posts: 4 | Registered: Jan 2006
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posted
hey Mach, you said"trades settle faster" at Choicetrade. can you explain that please? thanks
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
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posted
the majority of time the trades are settled pretty fast... pretty much the same day or the next day so you can trade again.. only one time i experienced the 3 day rule...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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