Teen starting off in the stock market.?
I’ve been researching the stock market over the past few weeks and wanted to try it out. So I bought 5 shares of stocks I like (C, Siri, GE, F and AMD). So I spent around 0 to play with on all 5 stocks, is it smart what I did to start off and watch the stocks over a few more weeks with the potential to invest more? I’m not really in danger of losing any money since I didn’t invest alot. I’m just basically trying to learn.
I buy my stock through Bank of America Merrill Edge
The commission for a trade is .95 for a purchase of more than , under commission is .95 and under commission is .95. Once I make 60 trades I would have a base commission of .95 per trade. I’m thinking about buy a few shares of KFT and T those are stocks with good dividends right?
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September 6th, 2010 at 7:01 pm
I am glad you are learning how to invest. One very important thing is that we must cut down our costs. That means cut down on commissions. If you can pay less, then try to pay less.
If you opened an account at Scottrade, their commissions are only $7 per trade. Better yet, open an account at Zecco.com – their commissions are only $4.50 per trade.
If you make 10 trades at Bank of America, that will cost you $89.
Those 10 trades with Zecco.com would only cost $45. You would save $44. That’s a lot of money!
If your stocks go up and you make money, don’t think that you know everything. Keep learning! And if your stocks go down and you lose money, don’t get discouraged. Try to learn from your mistakes. It’s better to lose a 100 dollars than to lose 100,000 dollars.
September 6th, 2010 at 7:01 pm
look at DGIT they just had a 38% loss but they are listed with forbes as the fastest growing s@p and they just announced a stock buy back. I also like DDS i believe it is way under sold i think it is around 26 a share but im shure within the next two years it will be 60 a share, but a lot of people say stay away from retail. where are you buying your stock most places have a min. of 500. if i where you i would try a mutual fund until you make your first million unless you really know what you are doing
September 6th, 2010 at 7:01 pm
This is a fine way to learn but watch out for the commissions on such low purchases. It will be better for you to try to save enough to buy 50 to 100 shares of your next stock to keep your commissions low as this cuts into your total return.
Look at dividend paying stocks to help build your cash and/or reinvest the dividend if your broker allows this.
Good luck!