I am just starting out and I would really like to get a feel for investing. I’m a poor college student, so I can’t spend a lot of right now. I have 100 dollars in my Ameritrade account. Any recommendations? What can I buy with 100 dollars that could turn me a profit (given that Ameritrade’s commision is 9.99)?

 

  • Ted 5:46 pm on October 13, 2009

    Spend time reading while you save your money.

    First, read —
    “Market Wizards: Interviews with Top Traders” by Jack D. Schwager
    The New Market Wizards: Conversations with America’s Top Traders by Jack D. Schwager
    These will give you a window on successful traders who have really made the big time. From these, you should learn that trading is personal. These people are successful, but took vastly different routes to get there.

    Then read —
    Trade Your Way to Financial Freedom by Van Tharp
    You should learn that trading is not about hot tips and secret formulas.

    Then read —
    Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition, (Paperback) by Michael W. Covel (updated edition not required)
    The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires by Michael W. Covel
    From these you will learn how the market really moves.

    For reference —
    Getting Started in Technical Analysis by Jack D. Schwager
    or, if you want to jump in the deep end
    Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy

  • Jay B 5:46 pm on October 13, 2009

    It completely depends on your risk tolerance…

    Does that $100 mean the world to you, or can you afford to take a chance to make a bit higher return?

    Safer stallwart companies in the discount retail sector might be one way to go if you don’t want too big of a risk. Companies like WalMart, TJMaxx and Target are 3 to look at.

    If you are willing to take a bit of a risk, take a look into oil drilling and exploration stocks like Magnum Hunter Resources (MHR).

    Of course, you can always buy stocks of companies that are in your hobby areas….if you like computers, buy Seagate, Cisco, or Qualcomm….etc.

  • stevepitt2 5:46 pm on October 13, 2009

    You don’t have enough money for it to work. The $9.99 for the buy and $9.99 for the sell is 20% of your $100 investment. Picking stocks is hard enough without putting yourself 20% in the hole to start.

  • !!! 5:46 pm on October 13, 2009

    Read books on Warren Buffett, Bernard Baruch, Jesse Livermore and other successful trader/investors.

    Learn how to read a financial statement.

  • Sim L 5:46 pm on October 13, 2009

    You go to this web site for fast buck PennyStockProfessor.com

  • Answer Me 5:46 pm on October 13, 2009

    Ok scrape up $400 from somewhere and switch brokers! Pick up a few books and read up on stocks. Go for low risk, low yield stocks first since you are new at this. Read as much as you can and watch youtube videos and documentaries. If you find the topic interesting then open a brokerage account somewhere and start buying stocks. Don’t open a forex account, I know lots of ads are out there promoting forex but trust me stocks are much better and safer to start out with.

    I recommend a low fee brokerage like sogo who charge $3 a trade and also give you 100 free trades to start so make your first few trades really small ones. Trust me when you are playing small for the purpose of learning then you don’t need people charging you $10 a trade like most brokers do so sogo is good in that respect. Later if you become more seasoned you might want a fancier broker. And one last word of warning, never never buy and sell the same stock in the same day more than three times a week. It’s the PDT rule.

    Don’t listen to anyone who says that because you have less than $500 you should play with forex and oil and gold. Just ignore them and start out with stocks first.

  • Richy 5:46 pm on October 13, 2009

    Sign up FREE for Jim Cramer action alert. Jim Cramer is a celebrity investor (google him) and he has a program called action alert plus where he emails you about every trade he makes. There is no better way to learn than watch what the big dogs do.

    It is a 14 day free trial membership and you won’t be charged anything if you cancel the trial membership. It was great to see his trades. I have given you the link for the free sign up below.

    http://www.dpbolvw.net/click-3662274-10568242

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