trading online

Discussion in 'Homesteading Questions' started by caberjim, Dec 22, 2004.

  1. caberjim

    caberjim Stableboy III

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    I'm thinking of setting up my spouse to do online trading as a christmas present. Any suggestions on who to use? e-trade? Any advice or suggestions would be welcome.
     
  2. mtman

    mtman Well-Known Member

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    scottrade and fideity there all goodand a good stock to get started on is ...siri a lot af action and im shure it will pay off
     

  3. mtman

    mtman Well-Known Member

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    iff you type in www. ask and then in the search type in real time quotes you will see some online traders and be able to look up your stock
     
  4. countrygurl

    countrygurl Well-Known Member

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    we trade penny stocks, scott trade is going to $7 plus 1/2% on jan 3 for all trades incl penny stocks. lowtrade looks real good also. havent use them yet
    but was going to until we got a notice from scott trade on the new lower fee.
    merry christmas
     
  5. Hermit

    Hermit Active Member

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    I use Scottrade actively. I recommend them because of the low capital startup cost (account minimum of $500) and low trading fees. I just got a notice in the mail from them that starting on January 1st, all "market" and "limit" orders will be $7. (These terms are explained below). Previously, limit orders were $12. They are the cheapest that I have been able to find. There is no yearly account maintenance fee.

    You can go to http://www.scottrade.com and print out an account application. Fill it out and mail it, along with a check for at least $500, to your nearest branch office. They'll send you your account number and access number in the mail in just a few days.

    Day trading can be tricky. Very few people make money at it. Generally speaking, before you buy a stock, you should know how much money you can stand to lose, and how much is enough of a profit.

    For example, say you buy 100 shares of Sirius Radio (as suggested in an above post). Their ticker symbol is SIRI. As I type this their going price per share is $8.01 so buying 100 shares would cost you $801 plus $7 for the market order for a total of $808.

    If you can stand to loose 10% before it would really bother you, you would enter a limit order to sell your 100 shares if the price falls to $7.21 per share. That would leave you with $714 after commission, or a loss of 10% plus cost of trading ($14).

    You should also decide how much is enough of a profit. If you want to make 10% profit, you would set a limit order to sell your 100 shares if the price rises to $8.81 per share. That would give you $874 after commission, or a profit of 10% minus cost of trading ($14).

    I don't day trade. My time horizon is longer than one day. Some stock I hold for 3 days, other stock I hold for 6 months or longer. I only invest "extra money," that is money that I don't need for any specific purpose like groceries or other expenses. That way if I loose money on a trade, it's a lesson learned, not a financial hardship.

    The best way to learn is to "paper trade." That means to buy and sell stocks notionally (pretend only). Watch the price on scottrade's software that you get access to when you open an account. Get a feel for the type of movement that a specific company's stock goes through. I watched Smith & Wesson for about 6 weeks before I bought my first shares awhile ago. I noticed that over a period of about a week, they would swing about 15 cents up and down. I paper traded them successfully, and decided to try it with money. I followed their cycle three times, buying near the low, and selling near the high. I got lucky, and made some money. That kind of behavior can turn against you...you might buy at what you think is near the low, but it can drop dramatically from there. That's why it's crucial to put stops in place (limit orders) that will bail you out when you exceed your comfort level.

    For those of you who don't know what a "market" and "limit" order are, a market order is what you place if you want to buy a stock right now, at whatever the going price is. A limit order is a request to buy a specific number of shares when the price gets to a certain number. If I buy 100 shares of SIRI right now, I enter a market order for 100 shares. The trade will trigger at whatever the going price is. If I want to sell those shares when the price raises $10 per share, I would put in a limit order to sell 100 shares of SIRI at $10 more per share than what I just paid for it.

    I hope this post was helpful. I shopped around...looked at Vanguard, Fidelity, Schwab, E-Trade and a few others, and found Scottrade to be the cheapest per individual trade and account maintenance fees.
     
  6. mtman

    mtman Well-Known Member

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    so did you gain or loose on siri
     
  7. Bob in WI

    Bob in WI Well-Known Member

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    I have used several companies and the one I like best is currently Ameritrade.

    http://www.ameritrade.com/index1.html


    They charge a little bit more, but they have what is called "the streamer" which shows actual real time prices of stock trades .

    Ameritrade has no quarterly fee ($15) if you have $2000 in your account or have made at least four trades in the last 6 months.

    E*Trade was the most expensive one that I ever used.

    Good trading let us know how you do.

    Stock tip. Looking for a 13.8% return on a stock. Check out PVX. It has returned a little over one percent a month since I bought it, and apparently for a while before that.
     
  8. Hermit

    Hermit Active Member

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    Gain. :) Got lucky. A friend of mine bet big and lost big.
     
  9. caberjim

    caberjim Stableboy III

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    Thanks for all the advice. I checked out several and think I will be going with Scottrade.
     
  10. DAVID In Wisconsin

    DAVID In Wisconsin Well-Known Member

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    I use and like www.brownco.com at $5.00 per trade. I also use and like www.firstrade.com at $6.95 per trade with free dividend re-investment. I am well satisfied with both companies.
     
  11. linuxboy

    linuxboy Member

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    Try also interactivebrokers.com and freetrade.com
     
  12. Wilbur

    Wilbur Well-Known Member

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    Be careful with limit orders- especially with NYSE listed stocks- the specialists can see them and very often will clean them out. This was alot more prevalent when things were done more by hand but it still exists. But the point about limiting your losses is very accurate. Keep them to a minimum and don't be afraid to say you made a mistake and get out. The people who lose big are the ones who are too stubborn to admit the market is going against them. Don't be worried about it, just get out. The market doesn't care how much you know or think you know. It will take your money just as easily.

    In major league baseball if a guy gets 3 hits and strikes out 7 times in 10 at bats he goes to the hall of fame. You need to have winners but all it takes is one big loser to cause a major major problem.

    Good luck!!
     
  13. Bob in WI

    Bob in WI Well-Known Member

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    love your analogy Wilbur
     
  14. whodunit

    whodunit Well-Known Member Supporter

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    If she wants to buy and hold, then www.buyandhold.com is what I've used before. You can also sell, if warranted, but usually it's more for people who want to accumulate stock slowly using dolar-cost averaging.
     
  15. agmantoo

    agmantoo agmantoo Supporter

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    Some hard lessons will be learned in the market. The education somes at a high price. Initially I strongly suggest this: if you loose 20% sell regardless! The next stock you buy you will only have to gain 25% and you are back even. If you loose 80% you will never get a 500% return on the remaining 20% to get back even. If you are fortunate enough to select a high gainer, keep this in mind.....Pigs get fatter, hogs get slaughtered. I know what it is to be the hog on the platter with an apple in the mouth. :) Good luck and may prosperity be with you.