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  #1  
Old 10-20-2005, 06:00 PM
scotty34 scotty34 is offline
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Location: Vancouver BC
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Default Popping my cherry

First of all, I will state that I have never traded stocks myself before. This is a field that I may be interested in, and I think I would like to give it a shot. I am currently 19 years old, live in Canada, and am taking my 2nd year of a Commerce degree in school. Some basic accounting and economic classes are about the extent of my knowledge of the stock market.

Being as I know next to nothing, I would like to make my first shot with a small amount of money ($300-$500 to start with, if that's possible to do). I would be comfortable losing this amount of money.

I would like to ask here for any tips, links, ideas etc. on how to get started. What would be the best place to get started - is there any online site that would allow me to trade using such small amounts with reasonable fees? Being as I really don't know much, how great of a chance is there that I lose this money quickly? Any other possible advice is appreciated, or direct me to previous posts covering the same topic.

Much appreciated.
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  #2  
Old 10-20-2005, 07:23 PM
Packerfan1 Packerfan1 is offline
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Default Re: Popping my cherry

Scotty:

As a 36 year old with a lot of financial planning backround, but just started trying out swing trading (journal coming), I'll give my 2cents.

First: Good for you for thinking ahead and trying hard to get a "head start" on something you think you'd enjoy.

Now, reality time. I just starting swing trading this past week. These are stocks I want to get in and out of in 1 day to a week or two with a 2-3% target gain. I started with about $7500 (a very small % of net worth) and with a margin account have 2x that ($15K) in buying power. This gives me enough for about 4-5 stocks at any one time. Thats not a lot and is 50x what you can "try" with right now. AND if you get flagged as a daytrader (4 daytrades in 5 days) the SEC requires a MINIMUM $25,000 account. Many brokers will have a $2000 minimum to even open an account. So, here's what I'd suggest.

1. Take $100 of the money and buy the best books in the particular area you're interested in. Whether its daytrading, swingtrading, options, futures. Whatever you think is cool / interesting.

2. Learn from the web. Investopedia.com, Teenanalyst.com, heck just do a search for the area you're into.

3. Trade on paper for the next year using a realistic starting amount.. say $10K, or $25K. Better yet, challenge a buddy that you can beat them. Bet him $100 for the year. That'll pay for the books that helped you win. [img]/images/graemlins/smirk.gif[/img]

4. Build your financial base over the next 5 years. This includes having 2 mos pay in SAVINGS before even thinking about investing. All I ever know about is poker and money and IM just starting messing with individual stocks now that I'm set with my "long" investments using mutual funds.

Hope that helps.

Pack.

PS- If thats more answer than you were really looking for, I've heard that you can buy low volumes of stock at sharebuilder.com. and what ever you do, don't pursue penny stocks just because you've got pennies to invest. Good luck.
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  #3  
Old 10-20-2005, 07:46 PM
scotty34 scotty34 is offline
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Default Re: Popping my cherry

great response, thank you.
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  #4  
Old 10-21-2005, 10:52 AM
tek tek is offline
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Default Re: Popping my cherry

[ QUOTE ]

3. Trade on paper for the next year...


[/ QUOTE ]

I disagree. That's like saying play the free online poker tables to get ready for mid-limit money tables.

We both know paper trading is not the same as playing for real.

There are no short cuts in poker or trading when you start out. You read, get a game plan, play and get your butt kicked. Then you read again, reformulate your game plan and get back in the game.
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  #5  
Old 10-21-2005, 12:36 PM
Sniper Sniper is offline
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Default Re: Popping my cherry

[ QUOTE ]
I disagree. That's like saying play the free online poker tables to get ready for mid-limit money tables.


[/ QUOTE ]

Paper trading is an important aspect of learning the trading/investing game. I highly recommend that anyone just starting out and wanting to get a feel for what its like to put money to work in the market setup an account on marketocracy.com

Its a very simple way to get a feel for market volatility, among other things.

It does not compare to play money poker tables, where your opponents play very differently. Though, play money poker tables can be useful to a complete beginner, in learning the process of the game.
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  #6  
Old 10-21-2005, 12:39 PM
Packerfan1 Packerfan1 is offline
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Default Re: Popping my cherry

[ QUOTE ]
We both know paper trading is not the same as playing for real.

[/ QUOTE ]

While your point is taken, doing nothing is also not like trading for real and trading on paper is better than doing nothing.

He doesn't have the cash to trade for real, so unless you've got a better idea (which you didn't share), I'm not sure how you can disagree.

Pack
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  #7  
Old 10-21-2005, 01:49 PM
buffett buffett is offline
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Default Re: Popping my cherry

It doesn't happen very often, but I completely agree with sniper on this one....

[ QUOTE ]
I highly recommend that anyone just starting out and wanting to get a feel for what its like to put money to work in the market setup an account on marketocracy.com

Its a very simple way to get a feel for market volatility, among other things.

It does not compare to play money poker tables, where your opponents play very differently.

[/ QUOTE ]
-web

PS
FWIW, in my view any disagreements I have with sniper about investing are respectful disagreements.
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  #8  
Old 10-21-2005, 02:01 PM
tek tek is offline
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Join Date: Oct 2004
Location: Minneapolis
Posts: 523
Default Re: Popping my cherry

[ QUOTE ]
It does not compare to play money poker tables, where your opponents play very differently. Though, play money poker tables can be useful to a complete beginner, in learning the process of the game.

[/ QUOTE ]

You are right. Paper trading is not like play money tables. It is worse because at the play tables you are actually playing real people who just might be as serious about learning as the other people at the play money table.

But paper trading does not evoke to any degree what your emotions will be when your trades go south immediately. It will help you test your entry point decision, but that's about it.
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  #9  
Old 10-21-2005, 08:01 PM
Jordan Jordan is offline
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Default Re: Popping my cherry

what play money tables do you play at? it feels like people want to lose their money at the play money tables i've been to.

i'm sorry but i don't think you make a valid point. at least with paper trading you can get a feel for the game. the opponent (the market) doesn't change when you play for real, very unlike how opposition in poker changes with the transition from play money to real money.
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  #10  
Old 10-21-2005, 11:32 PM
Sniper Sniper is offline
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Default Re: Popping my cherry

[ QUOTE ]
FWIW, in my view any disagreements I have with sniper about investing are respectful disagreements.

[/ QUOTE ]

Thx Buff, I agree! There are many ways to make $$$ from the market, and we can all learn from each other [img]/images/graemlins/smile.gif[/img]
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