Personal Finance

Beginner sites for Investing/Stock Market?

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  • Jun 20th, 2005 11:49 pm
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Deal Addict
Jul 21, 2001
3832 posts
201 upvotes
Calgary
At $1000, it's 6% of your return going to commision (depending on who you go with).

At $500, it's 12% of your return going to commission.

Starting at $100? lol, at $29.95 per trade I don't think you'll get far, even if you get 200-300% ROI. That's 60% of your return going to commission. Who's to say you won't actually lose money, right?
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Apr 30, 2003
2000 posts
54 upvotes
Heh whats funny is... I remember starting at $500... Even as an amateur at that time I knew I'd need to do 10-15% to get even..... but I did'nt have enough cohones to invest more than $500... man, thats a lot of DVDs!! ...lol... or at least thats the way I saw it that time.... But I'd say I started off with the right experience.... I watched nortel bottom out at 67 cents.... then watched it rise to $3.xx before I had the balls to make my first purchase.... and then see it rise to $12.xx .... Thats the good stuff.... these days I'd say my porfolio swings twice that amount and it seems so acceptable...

So newbies, start with something reasonable... and go through the whole emotions of buying and selling. It'll involve super happiness to days when you just want to crawl under a rock and wait till the day is over. You'll only get smarter after every trade.
plucky duck wrote:At $1000, it's 6% of your return going to commision (depending on who you go with).

At $500, it's 12% of your return going to commission.

Starting at $100? lol, at $29.95 per trade I don't think you'll get far, even if you get 200-300% ROI. That's 60% of your return going to commission. Who's to say you won't actually lose money, right?
Member
May 22, 2003
390 posts
7 upvotes
Milton
If your just starting, PAPER TRADE first. Read that again. Keep an eye on the news to see how stocks react. Practice doing your research on stocks (look into the amount of outstanding shares, authorized shares, whether they are currently issueing shares (U.S. funds call it an S8). When you make 4 out of 5 stock picks correctly then you should start trading with real money. Read the book I recommended and learn how to read charts. And remember if your reading stock/investing message boards don't buy into the pump and dump.
Deal Addict
Jul 21, 2001
3832 posts
201 upvotes
Calgary
When you're dealing with real money, your own money, emotions can get in the way of things no doubt.

Knowing when to buy, sell, and ride it out is not always easy. Sometimes the way to learn is through mistakes you've made along the way.

To me, money inside of an RSP is money I won't use until retirement anyhow so I guess you can say I can afford to ride out the waves. So in that sense I'm highly tolerant to risk, bring it on!! heh :cheesygri

Sometimes keeping too close an eye, monitoring your investments day in day out or by the hour is not a good thing to do. Some times you just have to sit back and let it do its thing. Having said that, I do check my stocks on break time at work every day.
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Dec 22, 2004
1973 posts
12 upvotes
in my opinion, 500 is way too little, but if it works for some, i guess it'd work for others. Secondly, the toni turner book someone mentioned, READ IT, especially if you're thinking of doing short-term trading. I dont do long-term, so I never look at outstanding shares, if someone is issuing, their p/e, etc. but you gotta keep an eye on the news, cause no amount of technical analysis will help you when a stock you own reports bad earnings or their CEO is caught sleeping with a female exec (see: Boeing). Also PAPER TRADE PAPER TRADE PAPER TRADE. especially if you're thinking of swing/day/short-term trading. and buying the pump and dump from boards is not always bad...you can get some sick returns from them. just make sure you dump when the dumpers dump. if you marry a penny being pumped, it will break your heart. never hold a pumped stock longer than 3 days...on the third day, if you're not out, you're screwed. usually.

g'luck
Sr. Member
Jul 14, 2003
941 posts
i know a guy who can trade forex on behalf of your account. His historical return is rougly 20% monthly i think...
[OP]
Sr. Member
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May 24, 2003
752 posts
115 upvotes
Right on, thanks for the responses guys. Keep em coming, try to keep everything noobish for everyone if you can though. Any tips that you can think of or stories of getting into it would be great.

Edit: What about this book ?
What is the diff between short term trading and day trading? which is the absolute best book for a beginner?
This is what I want to do for starters, my wife and I set ourselves up on an allowance system, I am going to build up 500-1000 bucks to start off with and will have a couple hundred a month to use from there on. I just want to see what I can do and maybe be able to buy the odd treat for myself now and then.
[OP]
Sr. Member
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May 24, 2003
752 posts
115 upvotes
Another question, for trading online, which is/are the best site(s) to use? what about place like e*trade.com and the like?
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Apr 9, 2004
2908 posts
The stock market is quite alluring. It has promise to be a quick means to an end, giving you a lot of money for little work. Basically it is another form of gambling. I'd say just paper trade for a bit, like what Gold Monkey and batman321123 suggested. I never heard of anyone that "casually" traded ever make a lot of money. You are up against companies with traders that have their own team of news researchers. And even then, they don't always win.

Basically, I wouldn't recommend it. You will lose more money than you will gain. Just earn your money the old fashion way.
Sr. Member
Dec 16, 2003
682 posts
21 upvotes
Scar
chiller wrote:I'm pondering where to open an account. Has anyone used Ameritrade Canada?

http://www.ameritradecanada.com/

They say they charge 10.99 US for US trades.
one of the best price i could found, saved me a ton on commission, also great tools i you are on elite.......i also used TD Waterhouse(expensive and no level2 ect...)

also, Ameritrade Canada can only trade US stocks/options
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Dec 22, 2004
1973 posts
12 upvotes
brownstein wrote:
Edit: What about this book ?
I havent read that book yet, but a good friend (and a real good daytrader) recommended that book to me. Its the same author as the beginniners guide to day trading, so i'm guessing its good. I also use TD Waterhouse, but will switch soon. why? high commisions (min. $29), no level 2, no backfill, no watchlist, and not direct access. If you're going to daytrade, having access to level 2 and a direct access broker are a MUST.
Deal Addict
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Apr 26, 2001
2702 posts
19 upvotes
Do some paper trading to start out. That way you can watch a few things & get a feel for it.

You'll need a thousand to start with unless you're going to play with penny stocks.
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Member
May 22, 2003
390 posts
7 upvotes
Milton
brownstein wrote: Edit: What about this book ?
What is the diff between short term trading and day trading? which is the absolute best book for a beginner?
I have both the short-term and daytrading books from toni turner, they follow the same concepts and overlap some. It just depends what you want to get into, both of the books hold a TON of info but for you I'd recommend the short-term trading book. (get both if you want, if you think about it 20 bucks to learn A LOT is well worth it, that's less than the price of a commission fee for a trade at a major bank).
Member
May 22, 2003
390 posts
7 upvotes
Milton
batman321123 wrote:I havent read that book yet, but a good friend (and a real good daytrader) recommended that book to me. Its the same author as the beginniners guide to day trading, so i'm guessing its good. I also use TD Waterhouse, but will switch soon. why? high commisions (min. $29), no level 2, no backfill, no watchlist, and not direct access. If you're going to daytrade, having access to level 2 and a direct access broker are a MUST.

Batman, I'm with TD too and their commissions do suck. The problem in Canada is to trade pinks you have to go through one of the major banks. Ameritrade doesn't offer pinksheet trading in Canada because it's too expensive.

What brokerage are you thinking of switching too? I'm going to open an ameritrade account soon....once I cash out of a few stocks.

For level 2 I use alphatrade www.alphatrade.com. You should check them out. They offer a 7 day free trial. You can also get level2 from TD, you just have to phone and ask them (they go through another company).

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