Comments on: What do you think about investing in stocks as a beginner?

By: Newbee

Newbee — Sun, 16 Mar 2008 10:06:46 +0000

I agree w/ your idea, but about zecco, i’m not sure. I saw that many people posting answers in here did not recommend it.

Good Luck!!!

By: Feeling Mutual

Feeling Mutual — Fri, 14 Mar 2008 05:51:21 +0000

Practice using Yahoo! finance for a year first.

If you buy $100 worth of stocks (100 shares at $1) per share, on a limit order, you pay about a $7 transaction fee, then when you sell you pay a $7 transaction fee, plus a small SEC fee.

So you start off with at least a 14% loss.

You paid $107 for $100 worth of stock, so it has to go up at least 14% for you to break even. That is assuming you are using Scottrade who charges only $7 for limit orders.

If you buy $1,000 worth of stocks instead (100 shares at $10 a share), you pay a $7 transaction fee to buy and sell. You start off with a 1.4% loss instead, your investment only has to go up 1.4% to break even.

If you sell your stock before a year is up, you have to pay the higher short term capital gains tax. Which is one reason why 80% of daytraders fail.

Good luck

By: jebediabartlett

jebediabartlett — Tue, 11 Mar 2008 23:45:05 +0000

Oh! I agree… I found that it is an excellent, even fantastic< way to profitably spend your time. As you say, if you get in just a little…it’s great experience ( and always something to ” click over to” on the computer.
If you’re into the ” practice” part of it , a guy ( who occasionally answers here) has a nice site at:
Great place to see ” how you can do” and look at the way about 1200 other traders play the game!
Good luck.
P.S. Correction: up to 1300 traders, now.