On-Line Stock Trading

Discussion in 'Money Talk$' started by LadyEagle, Aug 2, 2008.

  1. LadyEagle

    LadyEagle
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    Has anyone here ever done it?
    What about eTrade and some of the other online brokers, who would you recommend?

    What are the nuts and bolts of on-line trading that a newbie should know?

    What are some of the terms a newbie should know and what do they mean?

    Advice?

    Thanks. :)
     
  2. Steven2006

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    Are you wanting to invest or become a trader? Keep in mind that if you want to trade actively you will probably be required to maintain a minimum of twenty-five thousand dollars in your account. By law brokers are required that you do, if you are classified as an active or pattern day trader. If you are just looking to start investing I would recommend starting with no-load mutual funds rather than individual stocks. If you are wanting to trade (which is different from long term investing) than you first need to purchase a few books on the subject and do some studying. You need to decide what type of trader or trading style you want to do. You need to also be prepared to probably lose some money in the beginning while you learn, could be six months to a year for many people. If you are a newbie as you say, and that you need to learn what terms mean, I would recommend a lot of study before you risk any capital. There is a lot to learn. The one piece of advice I would tell you, is make sure to always protect your capital. Have a strict rule and always adhere to it as to how much of a percentage you can lose on any trade, and get out when the trade losses that much with no exceptions? Basically always limit your losses and let you winners run. Don't however be greedy, be ready to take your profit quickly, because things can turn fast on a trade, and a winning trade can quickly turn into a loser if your not both careful and disciplined. Trading is hard to master, and most people who choose to become active traders lose money, so be very careful.
     
  3. TomVols

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    If you want to start small with investing, Sharebuilder (www.sharebuilder.com) is a great place to start. $4 per stock purchase, and you can also buy ETFs and mutual funds. It's a great way to invest.

    If you have a few stocks you're interested in, you can buy directly through the company through what is called DRIPS (Dividend Reinvestment Plans). You buy the stock directly from the company. No middle man. Go to the company website and search DRIPS, or direct stock buying or something of the sort, and you'll find how to do it. Each company has their own way.
     
  4. nunatak

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    much better to invest regularly in a no load mutual fund than stock trades
     
  5. LadyEagle

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    Thanks for the input. Is now a good time to get into the stock market or is it too risky to buy stocks (small amounts)?
     
  6. Steven2006

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    That all depends, on what your financial goals are. You asked about trading. Do you want to start trading or is your real objective long term investing? If the latter, then you must first answer for yourself some important questions. What is your risk tolerance? What is your goal with the money you are investing, in other words what are you saving for? Retirement, a house, a child's college education? What is your timetable for needing the money? How much can you afford to invest, and is it a one time dollar amount or can you invest a dedicated amount monthly? These are some of the questions you need to know the answers to before going any further. Or if you want to start trading then there would be other questions as well.
     
    #6 Steven2006, Aug 4, 2008
    Last edited by a moderator: Aug 4, 2008
  7. Steven2006

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    I would agree that would be true for the majority of people wanting to invest, but it is far from an accurate blanket statement.
     
  8. Alcott

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    I think it takes a lot more time and experience -- and I'm talking years-- than new or young investors imagine to really know how to make their endeavors pay, especially in active trading. In every evaluation of whether a stock will be going up or down in value, you can put too much or too little guidance on the numbers, ratios, or graphs. Actually, I think that after about 16 years of trying to be an active trader who regularly makes money, this may be the first year I'm carrying this out in anything like what my goal was. Other years I have made a few thousand, but I've made meaningful profit in all 11 sales so far this year-- including 3 penny-stock companies I have bought and sold twice-- and am thousands ahead in those I'm holding, with the exception of one. It's like it's all 'coming to me' so recently how to interpret those numbers and charts, and what abstractions may mean, that is finally paying off. But as I mentioned, all this only comes through loads of experience; so be mostly content wilth "safe" investments while gradually risking more as you progress, and be prepared for some losses-- consider them investments in investment education.
     
  9. ReformedBaptist

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    Scottrade. I buy stocks and leave them. No $25k min. $7 trades.
     
  10. ReformedBaptist

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    I'd say depending on the amount you plan on investing, use a fee-based financial planner. But to answer your question simply..when the market drops like a rock, its a good time. But in the long run your better off dollar-cost averaging.
     
  11. TomVols

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    DCA works in stock purchases and fund purchases as well. Great principle.
     

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