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01-17-2008, 01:54 PM
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Location: Michigan
334 posts, read 1,298,373 times
Reputation: 150
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I'm thinking about buy and selling stocks, starting with just $500 at first. My knowledge of investing is pretty weak right now. Last year I started a 401k, and also put $10,000 in CD, so I'm happy with that. But I'm not sure I understand the basics of stocks.
Just for example. If I bought 500 shares that cost $1 each, then the value of a share went up to $1.50, and I sold, I'd have $750 right?
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01-17-2008, 02:39 PM
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Location: Land of Thought and Flow
8,321 posts, read 14,087,669 times
Reputation: 4913
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A little less that $750 depending on broker fees.
But yes.
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01-17-2008, 02:53 PM
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69,360 posts, read 58,684,613 times
Reputation: 9372
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Quote:
Originally Posted by Brent85
I'm thinking about buy and selling stocks, starting with just $500 at first. My knowledge of investing is pretty weak right now. Last year I started a 401k, and also put $10,000 in CD, so I'm happy with that. But I'm not sure I understand the basics of stocks.
Just for example. If I bought 500 shares that cost $1 each, then the value of a share went up to $1.50, and I sold, I'd have $750 right?
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Keep in mind, that if you buy 500 shares at $1 each and they go down to $.60, you'll end up with about $280, ($300 for the stock, - $20 brokers fee) |
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01-17-2008, 02:56 PM
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Location: Southwest Missouri
1,921 posts, read 5,872,584 times
Reputation: 924
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Quote:
Originally Posted by Brent85
I'm thinking about buy and selling stocks, starting with just $500 at first. My knowledge of investing is pretty weak right now. Last year I started a 401k, and also put $10,000 in CD, so I'm happy with that. But I'm not sure I understand the basics of stocks.
Just for example. If I bought 500 shares that cost $1 each, then the value of a share went up to $1.50, and I sold, I'd have $750 right?
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Before you invest the first 500 real dollars, I would HIGHLY recommend you do some paper (pretend) trading to learn some of the basics. Are you planning to invest for the long-term, or day-trade? |
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01-17-2008, 03:04 PM
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Location: Northern California
3,700 posts, read 13,713,081 times
Reputation: 1893
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Quote:
Originally Posted by Kuharai
A little less that $750 depending on broker fees.
But yes.
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Don't forget the capital gains tax! |
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01-17-2008, 03:05 PM
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Location: Michigan
334 posts, read 1,298,373 times
Reputation: 150
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I intend to invest for the long-term. Right now I'm doing research on it. The company I work for is trading at $0.19 per share, so I won't be buying that lol. There's a few local companies that I'm familar with and are doing well, such as dow chemical.
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01-17-2008, 03:39 PM
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Location: Los Angeles Area
3,306 posts, read 3,664,393 times
Reputation: 592
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If you are doing it for the long-term you should start out investing in a Roth IRA (Assuming your income qualifies), this way everything will be tax free. Only after you max out your Roth should you think about investing in the standard sense.
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01-17-2008, 04:02 PM
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Location: Marietta, GA
857 posts, read 4,636,956 times
Reputation: 836
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Congratulations on being as fiscally responsible as you are at such a young age. One thing I would highly recommend is that you take a class in investments. When I was not much older than you I took a job with a financial planning company and they trained me in selling stocks, mutual funds, insurance, etc. I did that for about a year and I hated every minute of it, but the education that I got from them was worth a fortune because it taught me how to handle my own money even though I didn't want to handle other people's money.
I would start out with mutual funds until you understand the market better. Its a good way to break into investing, and I wholeheartedly agree with the poster above... start out with a Roth IRA. When you are my age you will be glad that you did!
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01-17-2008, 05:14 PM
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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
27,292 posts, read 45,438,318 times
Reputation: 31633
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You can do the mutual fund thing through ETF's at Scottrade for $7/trade
ROTH and 401K first, then for individual investing I like EFT indexes that I can trade intra day if necessary. Trading is really minimal on an index, I just re-balance a couple times yr once I've established a diversified portfolio. You don't want to be trading too much with $500. but on the other hand you might use it as speculative $$ so you can see significant growth (or decline)
I stick with the 5% rule - no more than 5% of investment in any one stock or sector (i.e. electronics / financial / ...)
Spend a few days over at Fool.com or Bobbrinker.com for recommended reading suggestions.
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01-17-2008, 05:22 PM
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69,360 posts, read 58,684,613 times
Reputation: 9372
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Quote:
Originally Posted by Brent85
I intend to invest for the long-term. Right now I'm doing research on it. The company I work for is trading at $0.19 per share, so I won't be buying that lol. There's a few local companies that I'm familar with and are doing well, such as dow chemical.
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Actually, just because the company you work for is at $.19, it doesnt mean its a bad investment, if your company is successful, and growing. Lots of $.19 companies have turned into $20 companies, (and lots of closed).
Just keep your ears open, if the word in the office is good, with growth, it means you buy. |
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