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Originally Posted by billscamaros
This is an awesome thread ..... one that I am enjoying and learning from. It's right up there with the "12 Gauge Garage" in addiction rating!!
My 401K is in a mutual fund, and I have a couple of small annuity accounts - one each for my wife and I. The stock market has always seemed so complicated, mostly due to the input from the few friends that I have who buy stocks. I've thought about opening an stock account for years, but have always been too intimidated.
I've looked thru the Schwab and etrade websites and setting up an account seems pretty straightforward. $1K minimum to open the account, and it seems like you're off and running.
So, Is it really this simple?
It's $8.95 for every trade. Does that mean that every time I add $ to my account to buy more stock, it costs me $8.95? Or is a "trade" only selling a stock?
I think that I read that there is a minimum number to trades that I have to complete on a yearly basis?
Again .... really that simple? Choose a known stock with increasing value over the last 10 years and hop in the game?
Where is the magic?  |
Yep -- it's that simple!
A "TRADE" is a buy or sell.... but once you buy something... there is no more cost.
It cost you NOTHING to put money into your account.
The thing that I've been preaching is to just buy good quality names - that pay dividends - re-invest the dividends and DON'T try to be a trader! Don't try to hit the lottery by buying the next "hot stock"... You can do that IF you have lots of money and lots of skills and lots of experience. We're talking SAVINGS here - retirement savings - long term savings.... not trading stocks. Not a get rich quick scheme. Just straight forward save and have the power of time compound your savings.
The big difference between a "savings account" (money in a bank savings account) and stocks is that you don't want to be taking money in and out of stocks. SO.... you have a "savings account" and when you have "enough" in there that you're comfortable with - then the 'extra' should be invested. You don't want to put all your money in stocks - and then not have any savings (ready cash). That would be wrong. Even I don't do that.
