Online Stock Trading Questions/Help ???

[Dario]

Hi guys,

As an idea LOML and I wanted to look into this (online stock trading). I am clueless about it and will be researching the next few weeks and it just hit me to jump start the process by asking for tips .

It may take some time before I actually do it depending on fast I learn. Can't risk my hard earned $ foolishly. Risk I can take but it's got to be done intelligently (if possible LOL)

1) Good tutorial site or book for the subject.
2) Is there a good site to check for leads on potential hot companies/commodities.
3) Which trading site/broker can you recommend?
4) Potential pitfalls I have to watch out for.
...and any other pertinent info you may recommend. Any help will be highly appreciated.

You can either post or email me your response.

Thank you,

 

[ashaw]

Dario

You can try E-Trade. They seem to have the best rates. One pit fall to watch out for is trading by the short term. To get the best ROI look at long term investments.

 

[DWK5150]

E- trade does have the best rates and its pretty simple to use and set up.

 

[Tangboy5000]

E-Trade is good, but I think this is a bad idea. For one if you want to dabble it's fine. If you want to be serious about it, then it's going to cost alot. In order to effectivly day trade you need a live feed from the exchange, this is very, very expensive. On-line tickers are as much as 10 minutes behind, which is no good for this kind of enterprise. You'll need to hit pretty good jumps to make enough to cover fees. Also remember, just because you hit the buy or sell button, doesn't mean it actually happened right then. You could have missed the price you were aiming for entirely, especially during a big sell off. As far as tips, no one gives them away, and if they are it's a scam. Invest in what you know, do some research into the company, see what the kids are buying etc... Here is my tip of the day for investing, watch microsoft. When the XBOX 360 hits, it's going to hit big time. No other companies have a new system coming out until next year, so that means no competition. With a price tag of over $400 and Christmas coming up, they're going to make billions in 4th quarter earnings, much above industry expectations.

 

[PenWorks]

Fred, if I understand ,you are about to retire, no ? Take it from an old day trader who made and lost thousands, buy REAL ESTATE, they aint making any more of that. []

I have traded from the pink sheets to the blue chips, and if you think our goverment is corupt, they are chior boys compared to the lies on Wall St.

 

[Dario]

Thanks guys!

I am afraid I will be a small time trader...not by choice though [V].

Real estate is undeniably one of the best (if not the best investment wise) but that requires big bucks...all I have is enough to buy a few pot full of soil. [}]

 

[Tangboy5000]

Dario, real estate does not cost as much as you would think. There are some banks that will do 100% financing on a commercial property. The interest sucks, but after a year or two you can refinance. You'll probably want to manage it yourself to start, but when things are going smoothly hire a property management company to take care of it. They usually take anywhere between 5 and 10% of the month net to maintain it. As long as your debt ratio is good and your credit score is like a 680 or better you should be able to get a 4 to 8 unit property. Positive cash flow is positive cash flow, so even if you only make $100 bucks a month to start, the value of your property will cotinue to increase. This brings your debt ratio down and allows you to purchase more property. You get 6 4 unit buildings and you'll be set for the rest of your life.

 

[Dario]

Charles,

I think I know the mechanics that you described...basically self liquidating properties. I may get into that later but currently (atleast here) rental properties are not that promising. New and better develepments are sprouting like mushrooms all over...and occupancy is getting lower.

If and when we find a promising deal, it is definitely something we will consider...but that is for much later.

 

[penhead]

If you are really insistent, go ahead and take off your shirt and toss it into the fire, save yourself some time..otherwise, these will help you just about as fast:

www.ameritrade and www.freetrade.com ( recently renamed www.izone.com )

 

[Dario]

Originally posted by penhead
<br />If you are really insistent, go ahead and take off your shirt and toss it into the fire, save yourself some time..otherwise, these will help you just about as fast:

www.ameritrade and www.freetrade.com ( recently renamed www.izone.com )

Originally posted by PenWorks
<br />
I have traded from the pink sheets to the blue chips, and if you think our goverment is corupt, they are chior boys compared to the lies on Wall St.

Seems like this is a bad idea...I just need a little more push...anyone else? [}]

This is why I asked...no need to loose my shirt if I can avoid it but you know I still have to read about it right? []

Thanks guys!

 

[BUGSY]

dario, william oneal has a couple of straight forward books out ..they give a good overview of how to invest...my findings have been that you can make money doing it yourself..look up on PAPER TRADING ...its a way of trading with no money at stake until you feel comfortable...if you have any questions ...just holler and i will TRY to help......bugsy

 

[Tea Clipper]

Dario,

Don't let these guys intimidate you. [] I use the profits from my trading to pay for my pen kits. I use Technical Analysis, but the key to successful trading is to not get emotional over any trade; have a clear plan as to when you will buy, sell, and always use protective stops!

If you don't have at least 10k to start with, then you're under capitalized for active trading (imho) - you'd be better off with a buy and hope, I mean hold, strategy.

If you'd like to learn TA, a good book is "Technical Analysis from A to Z" there is an online copy of it somewhere....

Also, I don't get too hung up on the indicators, I mainly just use trend lines. I'm also not a pro either. Like I said, I just do a few trades here and there and make enough to pay for this hobby. [] Reality Check: Not all of my trades are winners either, just so you know. Re-reading my previous sentence kinda made it sound like I'm making easy money - heck no, it doesn't work that way!

Take Bugsy advice and paper trade first - for about three months - then you'll know if you can make any money. Good luck. [8D]

 

[Dario]

Thanks guys.

I am actually planning more on prospecting...buy cheap and hold on it for years like Ron mentioned. If the company goes south hopefully I won't loose much...that is the plan atleast.

One thing for sure...I don't have $10,000 LOL

 

[Tea Clipper]

In that case, the guys over at Motley Fool are always preaching buy/hold. They have lots of good info re: tax, 401k, etc. but they are the anti-TA so I ignore their stock advice. A great place to learn the fundamentals - check it out: http://www.fool.com/

 

[Dario]

Very nice site...bookmarked already []

Thanks!!!

 

[penhead]

Don't give up so easily, but also don't think making money is easy.

A good link for starting to learn/play: www.virtualstockexchange.com

And a few more favorites (my opion) :
www.marketwatch.com
www.stockcharts.com
www.visioninvesting.com

 

[Ron in Drums PA]

Originally posted by Tea Clipper
<br />I use the profits from my trading to pay for my pen kits.

Now that is a wind fall!!!

Dario,

If you need to ask advice about online stock trading on a pen turning forum you will do much better stuffing bills your mattress.

BTW - I have a bridge for sale. Are you interested?

 

[Dario]

Originally posted by Ron in Drums PA
<br />
Dario,

If you need to ask advice about online stock trading on a pen turning forum you will do much better stuffing bills your mattress.

BTW - I have a bridge for sale. Are you interested?

Ron,

This group is diverse...I think almost anything I need to know can probably be answered here...pronto. Maybe not as good as a dedicated forum for stock trading is but I am comfortable with you guys.

I can try asking Donald Trump about real estate tips...but will he answer me?

BTW, I already bough so many of those...including a beach front property in Nevada [}][B)] LOL.

 

[tinker]

I use Etrade. The secret is to buy low-sell high.[}]
If you are not familiar with analyzing stocks, you are at least 6 months away from being ready, reading everything you can find and practice trading to see if you are learning.
Tax implications and trade fees on both ends of the deal have to be figured into the increase potential of the stock. That is just something for you to get started on, it is way more complicated than that.
Remember, the big boys manipulate the market to their advantage, so you have to think like they do and get on their coat tails.
I vote for real estate or used cars.[]