Investing in the stock market.?

Question

I have 3,000 I can put into the stock market right now, and I can put 500-1000 into it every month. I wanted to just buy 50-75 dollars in stocks every week day. But it seems the commisson to buy, then to sell would make that pointless. I am really only interested if I can buy stocks on a daily basis.. That would give me something to do (researching all day before I buy) so that I dont blow my money doing something else. No comments on my lifestyle plz, just help me with buying stocks. Thanks.

Answer 1

It appears that you want to daytrade. You really don't have enough money to day trade. The commission will really eat up any profits. Why not invest your money in a money market fund and add to it every month. Do some study and research on daytrading and try out different strategies until you find one that suits you. Practice paper trading while you are learning. Once you have built up enough money and knowledge, you can start trading for a living.

Answer 2

First, you can buy daily without trading daily. One strategy is to employ dollar cost averaging on a company that you definitely want to keep for a long time. By examining daily, you can add the feature of not buying, or buying as much on days when the price is tracking up, buying or buying exceptionally more, when the stock falls in price. Since you are in it for the long-run (as assumed earlier in this example), the price will always be flopping around. Buying when it is comparatively cheap (falling price), you reduce the cost basis for your holdings. When the stock price soars over time, there will still be moments when it dips. By looking each day for a buying opportunity you opt for missing the comparatively expensive shares. However, as anyone who has ever heard of "buy low, sell high" (and laughed), as your stock, preferrably, grows in value then when last year's high becomes this year's low (which can and does happen in a growing company), then you merely missed some of the more expensive of the buying opportunities (which is why you will often hear snickers when someone talks of "buy low, sell high"). So, simply, pick something that you think you will really like over the really long term (and get a cheaper broker like scottrade or trademaster or even sharebuilder, which is how sharebuilder is most useful).

Answer 3

I assume you want to become a good investor, learn new information, and enjoy yourself.
I have had some success in the stock market and offer a recommendation based upon my experience.
Research what you would do if you had a large amount of money first. Build a portfolio on Yahoo Finance and track your stocks daily or weekly. I would suggest picking a mix of big cap, medium cap, high cap, high dividend, high growth, manufacturing, technology, utility, foreign, and banking stocks.
Build a test portfolio with 100 or 500 shares in stocks that you find interesting. Keep up with how they are doing and make changes when you have new ideas.
Eventually, find one or two stocks that you feel really good about and invest your money. Become an expert on one sector or one group of stocks.
Keep studying with your practice portfolio and only add to your investment when you have the money. Only sell when you totally lose faith in a stock.

Answer 4

Before you can think of buying and selling stocks every day, you need to accumulate a larger fund. At $1000 per month plus $3000 to start, you will have $15000 in one year. If you invest that very profitably, say at 15-20 percent return, it may grow to $16-$20000. That is still not enough money for day trading.

It is commendable that you plan to do a lot of investment research before you invest. With a small fund and hard work, your best approach is to buy good stocks and hold them as they go up. When your fund is big enough for more frequent trading, your investing experience will be very beneficial.

Answer 5

Open a brokerage account at Zecco.