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Scott Trade

I am a poor student, but I had a little extra money last year and I decided to invest it into the stock market. It was a good decision on my part because, since I bought, the market has been doing a little better. I’m not rich, —yet.

I think it is a good experience to learn how to buy and sell stocks on the internet for any student or person interested in business. You don’t need a lot to get started, and if you lose money (hopefully just a little) its just education cost.

I use Scott Trade online to buy and sell stocks. It costs me about seven dollars per transaction, which isn’t bad at all. I don’t trade very much, I think my entire portfolio is just over $500 in net worth. But it is good education and experience. You learn a lot about responsibility, decision-making, and the mechanics behind trading. Even more, you are learning how to be savvy. Remember, an investment is good or bad irregardless of the amount invested. Oh, I should mention that the Scott Trade stock broker option is also good if you live in the Provo Orem area. They opened an office in Orem that is easy to visit and nice to get started with. I have been down to their offices and deposited money in the form of a check. The service was good.

A recommended reading, even though I haven’t read very much myself, is the intelligent investor by Graham. Also, I think Warren Buffet highly recommends the book for learning how to invest. It’s a big book.

My final advice is to take it slow, learn, practice, and invest only what you can afford to lose. I have been trading on the stock market since I was 17 years old and I have made money (on a battery company) and lost money (in a penny stock). Goodluck.

bogus!

As a business major who has studied investments/finance for two years I have to completely disagree with this!! $7 per transaction may be low for the industry, but it is still very high unless you can spread the cost out over large numbers of shares. Plus, investing in individual stocks is a HORRIBLE way to build a base for a portfolio. Even with all of this you still have to pay capital gains taxes every time you make a profit on a trade, which unless you hold for longer than a year is going to be taxed at your marginal tax rate which is probably around 15-20% for most college kids. So you have already paid 7 dollars just to trade, than you have to give up 20% of your profit! Unless you are dealing in round lots of hundreds or thousands of shares this is a joke.

A much better way to invest is to do a little research and find a no-load mutual fund with very low turn over. You could probably even find a fund for the s&P 500 or the Dow Jones and still post good returns. This post smells like a broker from Scott Trade got on here and is trying to drum up some business. If you want to pay someone else a bunch of money to make investments for you and give you tiny returns than give me your money so that at least you are helping out a fellow college student.

Excellent Comment

Very true. Investing money with $7 transaction costs in a small portfolio may be fun, but it's not a good "investment strategy."

For free fun, with no "education costs" I would consider a mock portfolio at investopedia.com.

Some Right... Some Wrong...

Mr. Coward, you are wrong. I am not a broker. I am a BYU student. Nonetheless, I am not a business major, nor would I consider myself business savey. However, among many of your good points, you have made a very big mistake, anonymous coward (sorry I don't know your name).

You are right about $7 dollars being expensive. Indeed it is when you are dealing with trades in the $500 - $1000 range. For example, if you buy $500 worth of stock and then sell it, you just spent $14. Which means you have to have had gains of 2.8% to break even (Actually, that’s not TOO hard to do). Nevertheless, I won't argue that $7 per transaction is a lot when trading small amounts.

Business major or not, you are wrong about the most important thing in my post. It is worth breaking even, or even losing just a little (hopefully not very much) for the education. Learning the lingo, how to execute orders of various types is invaluable. Some companies charge big money to teach people how to invest. Personally, why not get your foot in the door when you have little money to lose, and lose. Verses, having lots of money, little experience and lots to lose.

Me... I want to know how things work. I'm not going to let some suit and cigar tell me what to do with my money. Right now is the time to learn. Just be prudent, place only what you can afford to lose on the table. Consider it education costs. (I made about $85 about three days ago)

Remember, anonymous coward, right now it’s more important to learn than earn, because one day some of us will have lots of money... hopefully we have lots of experience to go with that money. Good luck.

By the way, there are other brokers you might want to look at:

TDAmeritrade
Charles Schwab (kinda expensive - office in Salt Lake City)
TradeKing (Cheap trades but I don't know much about them)
E-Trade
...etc

Again, good luck! Be smart.

You may have not intended to

You may have not intended to do so, but I think you have managed to express the state of mind that a lot of people are in. The sense of wanting to help, but not knowing how or where, is something a lot of us are going through.
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