Help me make my first stock trade

**Broken Arrow** · 10-31-2008, 06:52 AM

Ah, I've seriously looked into Zecco, especially since they offered something like 10 free trades per month... but you do need $2500 balance to qualify.

Is the rest of your portfolio properly allocated and diversified, with this trading account in mind? It's also taxable right?

Well... $500 is on the small side. With that amount, you should just stick to one stock for now, and minimize your trade fees.

Here's a link I like for dividend investing.

**tripods68** · 10-31-2008, 08:47 AM

The thing thats holding me back from moving my TD account are the lack of technical analysis and real time quotes features. I could be wrong. But I'm not seeing those things with zecco, except good looking females videos discussing the fundamental of investing and technical analysis.

**MaxPowers** · 10-31-2008, 09:25 AM

So you're telling me I should close my account with Zecco and open one elsewhere? I know I eventually will get $2500 in there.
The rest of my portfolio is in a Vanguard Roth IRA. Not to diversified because I just started it. Mostly in their Index S&P 500
My account with Zecco will be taxable, I understand that.

**Broken Arrow** · 10-31-2008, 09:36 AM

Nono, you don't have to close your account with Zecco. Zecco's trade fee isn't that bad anyways... assuming you're happy with their service.

However, I would just buy-and-hold a single stock of your choice.

Please let me know how it's working out!

**MaxPowers** · 10-31-2008, 09:49 AM

I can't decide which one...
ING is risky, but if it goes back up, that will be great gains. What kind of dividends does it pay?
I'm thinking Microsoft, GE, Wells Fargo, or ING...
Should I just stick with the $500 I got now, or should I pump it up? Opportunities like this only come every once in a while. Buy a half lot of 2 or 3 stocks?

**Broken Arrow** · 10-31-2008, 10:23 AM

If your strategy is dividends, then you may want to scratch ING. It's extremely likely that they will slash dividends. The other thing that bothers me is that I believe they're Dutch. I have a personal aversion to anything that's not based domestically, but my aversion could be unfounded. Again, I haven't been tracking this stock.

Personally, I'm more comfortable with Wells Fargo. That's what I've traded in the past, though at a loss, so please take it for what it's worth. Still, Wells is a good bank.

Microsoft and GE, I'm ambivalent to. Actually, I personally don't care for Microsoft as a company, but that doesn't mean it's a bad stock to buy. They're solid dividend stocks but... well, it's up to you.

I really don't think there's a need to split your stocks, assuming your trading account is only a small fraction to the rest of your portfolio. Plus, splitting means doubling your trade fees. Triple if you decide to buy three. Personally, I'd wait to beef up the account more, especially once you qualify for the free trades, before you start splitting off and/or trading more actively.

But it's entirely up to you.

**tripods68** · 10-31-2008, 10:29 AM

WFC, GE, MSFT take on my previous threads, these stocks are excellent buy at moment with solid dividend yields.

**MaxPowers** · 10-31-2008, 12:29 PM

dividends are not everything, just something nice to have. I am mainly looking for a stock that will most likely increase, like 25% or something within the next year or so.

My friend keeps telling me to buy Fannie Mae and Fannie Mac...

**tripods68** · 10-31-2008, 01:08 PM

Originally posted by MaxPowers View Post

dividends are not everything, just something nice to have. I am mainly looking for a stock that will most likely increase, like 25% or something within the next year or so.

My friend keeps telling me to buy Fannie Mae and Fannie Mac...

Friends like that who needs enemy...lol!

**Broken Arrow** · 10-31-2008, 05:20 PM

Hehe. Did I ever mention that an uncle of mine lost 80-90% on his trade with Fannie?

Seriously, there's a reason why it has dropped so much in the past few months: It stinks! Though they may be your friends, anybody who tells you to buy Fannie or Freddie has no grasp of the risk and the upsides (or the lack of upsides) involved.

I've already ranted about it elsewhere, but please humor me with this one suggestion: Do NOT buy Fannie or Freddie.

**MaxPowers** · 10-31-2008, 11:02 PM

oh yea I know. I'm in Africa right now, and unfortunately did not make the buy before the market closed. When is the best time to buy? Friday before the close or Monday at the open? Would I wait for a dip later in the week?
I funded my account with the other 2000 so that I now have the $2500. Looking at buying some GS. I decided to wait for WFC to drop a little more before I buy it. Is this a bad idea?

I saw my friend looking at stock prices, so I started talking to him about it. He rants on about FRE, and FMN. On Yahoo Finance, there is a section that says "1y Target Est" He was like, "Look! FRE and FMN are like $1 and they will double in price by the end of the year! They are the lost scrolls of the stock world!!" He also apparently buys stock based on the day to day up and down.
I'm by far not an expert at investing, but I know not to base my investments off some estimated number. I ask, why would you invest in a company that has failed and is going under? He told me the bailout will work, it's a government company that the government will not allow to fail. That's when I saw he had $1000 in each, and I just bit my tongue.

**Broken Arrow** · 11-01-2008, 07:56 PM

What's your trading strategy again? When you buy heavily depends on that.

However, as a swing trader, I rely on technicals to tell me when something may be undervalued and oversold. When some like that pops up on my watch list, then I buy.

However, you appear to have a basic accumulation strategy, in which case, you can buy pretty much anytime you want.

GS. I used to love them, and to some extent still does. However, even when it dropped below $90, I didn't buy them. Their drop wasn't just as a result of the market in general, but it has to do with the extent of Goldman's potential weakness that has recently come to light. So, who knows, but I believe it's current pricing is likely a fair market value. But that's my personal take on it. Feel free to agree or disagree.

Target estimates. To me, they're useless at best, and at worst, a great way to lose money. Seriously, even the best analyst out there can not predict what's going to happen to a stock price even in one month from now, much less in a year. And not only that, but the target price is constantly being changed to reflect their latest analysis. So, if it changes all the time, can you really trust what's written right now? Seriously, don't look at it.

Buying stock on intra-day fluctuations is perfectly legitimate... BUT it depends on your trading strategy. If you're planning to hold for years, you don't really need to do that. As a swing trader, it can often spell the difference between profit and loss. If you're a day trader, you've got no choice: This is how you make money.

Bailout. Uh yeah, the truth is, it HAS worked as intended! It was intended to keep companies that should have gone under alive in a state of undeath. However, as a trade that's actually going to make money? The bailout doesn't work that way. Seriously, if it did, don't you think Fannie and Freddie stock prices should have restore itself back to at least $20? The fact that it has not should tell you something.

I know that I am also an amateur trader. However, please be careful out there. There are more pitfalls and wrong assumptions about trading than you can shake a stick at. That's why trading in general is so dangerous, not just because the nature of the exercise is dangerous, but let's be honest with ourselves: Are we really so much smarter than the rest of the stock market? Investor risk is the greatest risk of them all. We are our own worst enemy.

When you trade, please do it with your eyes wide open, and please don't let anyone lead you astray from critical thinking and due diligence. Including me. You won't hurt my feelings if you double check behind me. In fact, I prefer it because I'd rather be wrong and make money than to be "right" but lose money. Perhaps, together, we can all help each other make better, more profitable trades?

Oh, and glad you've got $2500 in there! That means you should be able to qualify for free trades. Please let me know how Zecco works out for you.

Help me make my first stock trade