beginner invester help needed

**sweeps** · 02-28-2008, 07:12 PM

Do you want to invest in individual stocks or mutual funds?

Are you truly investing for the long term or are you planning on doing a lot of trading? (These are opposing goals, IMHO.)

**cajunboy** · 02-29-2008, 04:27 PM

i just want to start individual stocks and long terms. I am just trying to get my feet wet. So any help would be great. thanks

**sweeps** · 02-29-2008, 05:48 PM

If you're taking a buy and hold approach, Sharebuilder might be a good choice for you.

**cajunboy** · 03-01-2008, 04:19 AM

Thanks sweep for your response. I will look into it. Is there anything negative about sharebuilder?

**sweeps** · 03-01-2008, 08:01 AM

Sharebuilder is good if you don't plan on doing much selling or trading. If you just plan on buying stocks and ETFs and holding them for a long time, it's a good choice. Search the internet for sign-up bonuses.

One word of caution that applies to all brokers. Reduce your commissions by making larger buys. For example, instead of buying $100 worth of SPY every month, put in $300 every 3 months. This will reduce the amount you're throwing away on commissions.

Edited to add: I have not mentioned anything about things like mutual funds or Roth IRAs or diversification. If you are truly a beginner investor, you might want to learn about these things before jumping into buying individual stocks.

**buzz** · 03-01-2008, 11:13 AM

Scottrade let's you trade anytime for $7, no extra charge for stop or limit orders, and has some extra research goodies as part of the package. There is also a stock-finder, e-mail alerts, etc.

**Seeker** · 03-01-2008, 06:51 PM

Originally posted by cajunboy View Post

Which trading company is good for a beginner investor? (Such as Fidelity, Scottrade, Etrade, Ameritrade) Are there any good tips for a beginner that is learning how to get started in trading stocks? I am looking for a long time investment, not short term. thanks

This whole statement is edited.... because :
1) i got interrupted and meant to quote the original poster.
2) wanted to provide links to fees.

ShareBuilder: Pricing Program Fees

Online Trading Fees as Low as $7 - Stock Investing, Investments, Stock Brokers - Scottrade

Online Brokerage Comparison �€“ The Right Discount Brokerage Firm for Online Trading - Scottrade
(no comparison listing of sharebuilder however)

OP mentions both "trading" and "investing" -- the two are NOT the same.
if you think that you may want to watch/move money, then technically you are "trading".
if you want to put money away and not watch or look at it for the long-haul, then you are "investing."

Research fees and determine whether you are in for the investment or for the trading. That really determines which company to go with.

Fees to me seem to be better with Scottrade... (no charges for inactivity & $7 in and $7 out looks good) and if nothing changes in the future, that's where I'll probably invest.

**maat55** · 03-02-2008, 05:35 AM

I would invest first in Mutual Funds, then after you learn more about trading stocks from the sidelines, you could use extra money in that arena. But I would stay with Mutual Funds as your base investing. Fully fund a Roth IRA before you invest elsewhere.

**cajunboy** · 03-02-2008, 10:32 AM

Thanks for everyone info. i will do more research before i put any money in a account. I do have an 401k with my job but i'm going to move to texas soon, so i will transfer that into a Roth IRA account. Any more advice for this youngster...

**Broken Arrow** · 03-02-2008, 07:18 PM

Let me re-emphasize something that has been brought up:

Stock picking is not a good way to start out.

Honestly.

If you do want to start out with that, please be sure to know exactly what your planned moves are in advance and know exactly why. There are no safety nets such as built-in diversification out there.

**maat55** · 03-02-2008, 07:27 PM

Be debt free and invest, you can't go wrong doing that.

beginner invester help needed