Anyone do stock trading online?

[kowe69]

Recently a co-worker and an acquaintance of mine have started buying and selling stock online. They both have been rather successful at it with one making about $5,500 on 2 1/2 months and the other making about $30,000 in the last 3 months. I am really impressed given the current stock market and economy. Neither have had any previous stock trading experience. I am considering doing it myself but I was wondering if anyone here has had any good or bad experiences with scottrade, ameritrade etc. How much money did you start with? How much did you make/loose. Any other advise?

 

[1995zj]

What kind of trading are they doing? Day-traders I assume...? Pretty risky stuff and you've gotta do your research obviously. I personally use Scottrade and I really like them. You gotta put at least $500 in to open the account (which I assume you would be trading with a bit more than that). Then they charge ~$8 per trade. How much you make/lose all depends on how much you are willing to put on the line, IMO start off small and learn from your mistakes. Just my $.02

 

[Slangy]

Sharebuilder is $4 per trade. You get 6 free trades a month for basic membership which costs you $12 a month. Any real time trage I believe is $14.95, so if you just can't pass up on a stock price you can pay the price, but if you can wait til tuesday of each week it is either free if you still have a few freebies or else it's $4. i have used them in the past and really like them. I now use Charles Schwab due to the account associated with my office.
I agree with 1995 zj, start small because you will make mistakes and you will lose money, but that is how you learn. And if you are lucky enough to get a stock that doubles in price, sale and get your initial investment out and leave your earnings in. Don't get greedy, trust me it will bite you in the ass. it has happened to me more than once. Do your own reserch and learn about it don't just google "Stock of the Week" and take their advice. In my opinion now is a decent time to buy because certain stocks are low and you can get them for a decent price, and hopefully they will go back up. But again make sure you know what your buying. I know Freddie Mac is in a world of hurt but I bought a few thousand shares at under .50 cents and sold today at $1.91. Yeah it may go up even higher tomorrow but then again it might drop out. That is what I mean about not being greedy. I took a risk and it paid off, but I have been burned doing that so I guess I just got lucky this week.

Good luck and just have fun with it.

 

[Kiel]

I have used scott trade also, and was very happy with what they do. They also have an office downtown and one in fort union so thats cool. They have a program available too I used in college that allows you to trade in real time but without real money and keep all your records with no risk of the real market.

 

[yellowbronco]

Ameritrade is a fairly decent broker at $5 a trade. If you want to get serious about low commissions Interactive Brokers is at $1 a trade for under 200 shares. Also check out Zecco.com, they offer 10 free trades a month (with an account balance of $2,500 or more) which can be just great for swing or intermediate postions.

If you know what to look for in a volatile market, such as the one we are experiencing, there is a LOT of money to be made. It sounds like your friends are on the right track. What kind of trading strategy are you planning on?

 

[kowe69]

..... They have a program available too I used in college that allows you to trade in real time but without real money and keep all your records with no risk of the real market.

You mean I could "practice" trading without money to see if I make the right choices? Do you already need to have an account set up to use that feature?

 

[kowe69]

.....What kind of trading strategy are you planning on?

Umm...well I have about $20,000 I can invest. I planned taking the advise given earlier and starting small and diversifying my stock till I get the hang of things. As I do more research and watch the market I will increase my investments. Did you have some other strategy in mind??

 

[SAMI]

I've been wanting to learn morpe about trading as well. My bro in law was making six figures as a Regional VP for Wells Fargo; but left that about a year ago to trade full-time since he makes more than he did with Wells.

I'll ask him some questions soon and report what his strategies are.

 

[Bart]

I hear Lehman Brothers stock is trading low these days.

 

[yellowbronco]

Umm...well I have about $20,000 I can invest. I planned taking the advise given earlier and starting small and diversifying my stock till I get the hang of things. As I do more research and watch the market I will increase my investments. Did you have some other strategy in mind??

Do not day trade, at least not for a while.(you need at an account value of 25K anyway) If you are looking at buy and hold there are a lot of bargains out there right now, but you will have to wait a while before you see a return. Swing and intermediate trading will give you faster returns and you won't have to spend all day sitting in front of your computer like day trading. The market is obviously very volatile right now, so be careful.

Also, one of the very most important things to remember is: Don't let emotion dictate when you buy or sell. That is the numero uno way to lose your trading capitol! Set your stops and stick to them no matter what!

As far as strategy goes, find what works for you and go with it. Something important to think about is your risk tolerance. Is this money that you can afford to take a more aggressive risk with, or is it your kids college money? Growth for the future or income now? I'll stop with this: never buy something on a hot tip, if it sounds too good to be true it probably is. Do your research and make informed decisions and you'll do alright.

Or.....just ask your buddies what they do and do that. And PM me their strategy...:greg:

 

[wally]

Another big thing that I did not read. Do not put money into it if you can not afford to lose it.

 

[Cody]

I use etrade for banking and for trading. You can also set up fake portfolios to watch how they do to get a little practice.

Had I taken my upper division finance class earlier in my college days, I would have switched to finance as a major. I learned so much in that class and it was very interesting to me to see how the market works.

 

[OREGON85]

I use TDAmeritrade and really like it. I do not day trade, I'm in it for long term growth. I also do not invest all my money, but always reinvest dividends.