posted
I am new here so please have some patience with me.
If a person is investing in penny stocks can you profit when most brokers tack on fees for stocks in excess of X shares? It seems that would just increase the need for a high gain to come ahead.
I was also discussing an idea with a worker about making better money than investing in CD's. If an investor made 12 investments with a unit of $1,000 that had 5% returns in day trading($20Buy/$20Sell fees) you'd come out with 11.14% gains after taking out a hypothetical 30% income tax. With the right research and patience do you see that as doable? I understand the inherent risks with any attempts at fast gains and was just mulling it over.
Any comments would be appreciated.
Posts: 3 | Registered: Jan 2006
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posted
as a rule, one doesn't "invest" in pennies. It's a trader's game. Sure, the ocassional exception exists... Anyway, that's why most here have low-cost trades...
To invest, look at big-board trades and don't worry about $40 commish...learn FA. Most (succesful) here are TA folk...
You could do round-trips (buy/sell in one day, if that's what ya mean by day-trading) at $1K buy-in that would beat 5% consistently. But with less than $25k in your account, you're liimited on "round-trips" per week...
caveat emptor: if $1K is your entire capital, it would be a mistake to risk it all, especially while you're learning...better to paper-trade till you're cognizant of risk management--then still better to start with small trades...
let small profits mount, rather than big loss hammer
posted
I was just asking about the pennies our of curiousity.
What do you mean by FA and TA folk?
Yeah, I meant round trips. I know you have to have higher capital and a margin account to actually take advantage of day trading without waiting on funds to open back up.
I was just using $1k as a figure for the math in the matter.
I am rather interested in the small profits. It may take longer for them to add up but they hopefully lead to smaller losses.
Posts: 3 | Registered: Jan 2006
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posted
TA = Technical analysis (mainly for trading... day/swing/position trading)... FA = Fundamental Analysis (investing.. holding a stock for more then a year or one year minimum)... to limit your losses and let profits run you need to use Stop/losses at all times... Choicetrade.com doesn't seem to tack on fee's for stocks in excess of whatever ### ....
-------------------- 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
I am more interested in the TA angle myself. I have seen several recommendations for both Choicetrade and Scottrade. Aside from the differences in fees Choicetrade's site seems a bit more user friendly.
Posts: 3 | Registered: Jan 2006
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