I am considering joining scottrade.com. I understand the $500 joining fee and $7 per trade. I wanted to know is it possible for a beginner to make $400 a month starting out with $2000 to buy stock with - after the $500 fee?
All answers are appreciated.
2007-02-10 03:35:09 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
Not a chance..Your are talking about making over 25% per month
No body does that on a steady basis.
A beginner should buy a good balanced no load mutual fund through your bank until you learn a lot more about investing
2007-02-10 03:52:59 · answer #1 · answered by bob shark 7 · 3⤊ 0⤋
I don't think you are understanding the "$500 joining fee" at all. It is a minimum deposit amount that you need to open the account in the first place. The $500 is still yours.
With $2000 in your account, it would be extremely unlikely to be able to make $400 per month. Maybe a month here and there, if you take on a lot of risk (but you could then also lose more in a month). As a long term average, I think it would be optimistic, but not necessarily unrealistic, to expect to earn $15-20 per month.
2007-02-10 04:54:36 · answer #2 · answered by Randy H 4 · 1⤊ 0⤋
Possible? Sure. So you buy 2k of stock x at 10$ for a total 200 shares. That stock goes to $12 by the end of the month. There you go. Or else it doesn't.
Addition: In reality, though, you are making several mistakes. First, you want to make a fixed profit every month. It doesn't work that way. You will have months were you have losses. This will take its toll on a $2k account--you're very under-capitalized. Second, assuming you could do this for a year (forget about reinvesting your earnings, for the sake of the argument), you would be up almost %300 at the end of the year. Possible? Sure. Likely? Nope. Most decent fund managers and traders are shooting for 20-30% a year, and that's a good year. Not to discourage you, though.
2007-02-10 03:39:34 · answer #3 · answered by angrysandwichguy2000 3 · 2⤊ 1⤋
When I joined Scottrade there was no fee at all. It is just $7 per trade.
If you start with $2000 you it will take you roughly 20 years before you would make $400 per month.
2007-02-10 04:15:22 · answer #4 · answered by investments 101 2 · 0⤊ 1⤋
i would think the 500 bucks is just a minimum starting balance, not a fee
2007-02-10 04:49:14 · answer #5 · answered by swenjj 4 · 0⤊ 0⤋
1) Possible?? Hell YES!
2) Probable?? Hell NO!
3) Better chance on the roll of Dice in Las Vegas
2007-02-10 05:16:55 · answer #6 · answered by Puzzleman 5 · 1⤊ 0⤋
No.
You need at least $25,000.00 USD.
2007-02-10 07:44:03 · answer #7 · answered by Anonymous · 0⤊ 1⤋
always bet on black.
2016-01-12 16:01:18 · answer #8 · answered by ? 1 · 0⤊ 0⤋