Stocks? Who Do You Trade With?

Discussion in 'Community Discussion' started by illegalprelude, Feb 16, 2006.

  1. illegalprelude macrumors 68000

    illegalprelude

    Joined:
    Mar 10, 2005
    Location:
    Los Angeles, California
    #1
    Hey you guys, ive been thinking of getting into trading. Nothing heavy for I dont know enough but ive read and asked around, but I guess the best way to learn more is jump in and do it.

    Ive looked at www.etrade.com or www.fidelity.com

    who do you guys? why? what are the benifits.

    Im mostly lookin to trade in the blue chips. Siriuis, sony, apple, google (although prices are :eek: so no way) im thinkin of jumping in with some Sirius cause the stocks are fiarly cheap, $5 so no harm in messing around with a $100 or so
     
  2. asherman13 macrumors 6502a

    asherman13

    Joined:
    Jul 31, 2005
    Location:
    SF Bay Area, CA
    #2
    If you feel comfortable, do it. Personally, my family and I use Schwab, simply because they have their retirement accounts there and so I have a MMF there (college money), a mutual fund or two, and some shares of good old AAPL (the past couple days have been good days...just a few more and I'm set:) ).

    Do whatever seems easier for you, and has low commission fees. You definately don't want to be confused and throwing away money with this sort of thing.

    In my opinion, there's no harm in $100 worth of investments if you're in the monetary situation to be thinking about investing.

    Good luck!
     
  3. illegalprelude thread starter macrumors 68000

    illegalprelude

    Joined:
    Mar 10, 2005
    Location:
    Los Angeles, California
    #3
    A few questions for you. A commission is the trade fee correct? Like Fidelity is 8.99/trade while etrade is 6.99

    im fairly younge (20) and ive always wanted to invest, I believe it it will be smart for the long term for retirment and such but I still dont know enough
     
  4. makisushi macrumors 6502

    Joined:
    Jul 15, 2004
    Location:
    Northern VA
    #4
    Funny those are the two you have listed.

    I actually use both. I use fidelity sometimes, because I have a Money Market account with them, as well as a Roth IRA.

    I also you E*trade, because they had some introductory deal i bought into...something like $50 for signing up.

    E*trade seems easier to use. The site flows better, and I can find information easier. I am not sure of the financial stability of E*trade, but if either company were to fail first, it would probably by E*trade.

    My first online trading account was with CSB direct, which was sold and transfered 3 times in the first year i had it...It certainly didn't leave me with a vote of confidence about its stability, and I closed that account rather quickly.

    I am not sure off hand, but I believe with either company you need to keep a $2000 minium balance.
     
  5. floriflee macrumors 68030

    floriflee

    Joined:
    Dec 21, 2004
    #5
    I have a roth IRA through USAA, and will most likely be rolling over my 401k from my previous employer into a traditional mutual fund IRA with Principal (the balance is too high to make it worthwhile to go to a roth). I like them because they offer free financial consulting if you have an account with them, and they are pretty good about helping you ascertain your needs.

    My present 401k is with Diversified Investments. Don't know much about them so can't really tell whether you should go with them one way or the other just yet.

    On a side note... the hubby and I are always talking about taking some of our present savings and investing it in stocks. Right now we do mostly just savings and T-bills, but we'd like to start dabbling in the stock market a little more. Anyone have any recommendations on how to get started? Who/what to invest in, or what to look for when looking to invest in a company??
     
  6. makisushi macrumors 6502

    Joined:
    Jul 15, 2004
    Location:
    Northern VA
    #6
    It is great you want to invest in stocks! Reading is the key, learn the lingo, etc.
    Get a book, like investing for dummies. I have learned to never trust a stock tip until you research it yourself.
    Where and what you invest completely personal, dependent on how much of a risk you are willing to take. Its like gambling. I sunk alot of money into Tyco a few years ago. A solid, billion dollar company, that had an Enron type fiasco, now I use the stock certificates as toilet paper.

    Good luck.
     
  7. ~Shard~ macrumors P6

    ~Shard~

    Joined:
    Jun 4, 2003
    Location:
    1123.6536.5321
    #7
    I've been an active trader/investor for many years now, survived the dotcom bust, etc. etc. and have a wealth of experience on the subject, so if you have any questions, feel free to ask.

    Are you looking at diversifying your portfolio past stocks at all? I deal with a lot of limited partnerships, options trading (both covered and uncovered calls and puts), convertible debentures, income trusts, etc., so again, if you need any advice, just ask. Oh, and most mutual funds are crap. I can outperform them pretty much all the time on my own and without having to incur those stupid MER fees. :rolleyes:

    One thing I would say though with looking at trading with such small amounts of money as you're looking at (i.e. $100 on a stock) is to keep in mind what your commission costs are in and out and how much the stock would have to go up for you to actually make money. It's all a game of percentages. For instance, if a stock is trading at $5 and you buy $100 of shares, you have 20 shares. Therefore, even if the stock goes up by 50% (which isn't likely), you've made $2.50/share, or $50. Not much at all. And that would be an extreme example. And you can do the simple math in terms of percentages which the brokerage would take of your profit as well, as you'd soon find the are doing much better than you on the trade! :eek: :p ;) But I understand that if you don't have a lot of money to play with there isn't much you can do...

    I would suggest doing a lot of reading and research before investing. If you don't know what NAV, P/E, EPS, etc. even mean, and how to analyze a company's balance sheet and earnings report, you shouldn't be investing. :cool:

    It does concern me that you think Sirius is a "blue chip" - they are the furthest thing from it. Their capital burn rate is extremely high and I would be very careful when thinking about investing in such a company - they remind me of a good old dotcom company back in 2000. I got burned on a couple of those, but luckily I short sold many of those stocks as well and made a killing as a result.

    As well as fundamental research you should do technical research as well. Learn about stochastics, momentum, RSI, MACD, etc. and that will assist you as well.

    Lots to know - do not fool yourself into thinking it's easy to make money on the stock market. I've made mine through a lot of hard work, research, and having ice water in my veins at times. :cool:

    As I said, if you need any advice, just ask. I have often thought of starting an investing thread here where I can impart all of my knowledge, but I don't know if having that on MacRumors is exactly the most appropriate place for it. ;) :cool:
     
  8. Kwyjibo macrumors 68040

    Kwyjibo

    Joined:
    Nov 5, 2002
    #8
    Shard-

    I was about to make a similar post but I didn't have the energy.


    sidenote did you short appl? 86-66 in like three weeks ... that would have been nice if you went through with it.

    oh and I'm completely agree with SIRI i'm keeping my money out of satellite radio because I don't like the industry at all, I don't see the future to be honest (long term).
     
  9. floriflee macrumors 68030

    floriflee

    Joined:
    Dec 21, 2004
    #9
    The industry is definitely questionable. Especially with what's happening with XM Radio. If only I had 200+ million to burn. :)
     
  10. ~Shard~ macrumors P6

    ~Shard~

    Joined:
    Jun 4, 2003
    Location:
    1123.6536.5321
    #10
    If one of us doesn't the other one will, it's all good. ;)

    Yep, as documented here and... hmm, can't find the post I made where I said I closed it out around the $67 mark. There are too many damn AAPL threads here! :p ;) But yes, I made ~$18/share on the stock in a couple weeks, so I'm quite satisfied. Was holding out for $65 to make it an even $20/share, but decided not to get greedy and covered my position before it actually hit $65. :cool:

    Couldn't agree more. :cool:
     
  11. cslewis macrumors 6502a

    cslewis

    Joined:
    Jul 23, 2004
    Location:
    40º27.8''N, 75º42.8''W
    #11
    You don't need a broker to trade stock. Years ago, brokers were only for the wealthy.

    I've been interested in trading stocks for a while... is there a way besides a direct purchase plan to buy stocks without a broker? I'm too cheap to hire one. :p
     
  12. illegalprelude thread starter macrumors 68000

    illegalprelude

    Joined:
    Mar 10, 2005
    Location:
    Los Angeles, California
    #12
    Hey shard, thanks alot for the info so far.

    The problem is that I dont have money, I have a few thousand but it would be far foolish for me to throw that around when I have no clue what im doing. Getting burned on a $100 or so is no problem for learning.

    I guess I feel like I know more then the avg. kid at my age but I hardly know compared.

    I would love for you to post anything more that you feel like sharring in terms of the price diff. per trade, how that works, how the commission works, anything within those line ups for a starter would be superb.
     
  13. corywoolf macrumors 65816

    corywoolf

    Joined:
    Jun 28, 2004
    #13
    E*TRADE is the ****! Use that/.
     
  14. ~Shard~ macrumors P6

    ~Shard~

    Joined:
    Jun 4, 2003
    Location:
    1123.6536.5321
    #14
    No problem. When I have some more time I'll post some more thoughts on the subject - it's such a large subject though. ;) :cool:

    You can always PM me as well...
     

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