About the fees on the online discount brokerage???

Question

Hi guys. Earlier, I asked you to tell me about the feeses of discount brokerage. one thing I didn't clearly ask was that When I open the account, lets say in scottrade, how am i going to put the money in that account? by ordering my current bank to transfer money? second question: Do they (scottrade) charge money for the incoming funds (which I am obviously going to do after opening the account? Third: I have the capacity to spend $10,000, so is it enough? can I start with thi s money? Fourth: How much time does a novice like me need to spend on this business on the daily basis? Note that I am a person with ordinary mind and intelligence. I am not dull neither am I extraordinary, just normal. Also, I have read tutorials on the www.investopedia.com, so I am not totally unaware of trading-stocks.
Thank you

Answer 1

Your questions are great, but they also suggest that you take a year or so to understand investing. Reading "tutorials" is just scratching the surface.

Scottrade is great for the more experianced trader. A newbe would be better served by a Charles Schwab or Fidelity Brokerage account.

Having said that.... you should still have a much better understanding of what you're doing. You should have an asset allocation plan. Each trade needs an entry point and an exit stradegy.... Are you prepared for that? Do you have a "Money Management Plan". You can be very successful with only 50% correct trades. If you don't have a "Money Management Plan" you could be correct 75% of the time and still lose big money.

Are you using the 2% rule? How are you limiting your risk? Have you read any books on the psychology of trading?

Having $10,000 risk capital is fine.... if you have a maximim amount to risk on each trade. Let's say $1,000.00 each trade. It's not for strangers to say. You need to make your own rules.

What ever you do...... don't trade penny stocks for at least 5 years (if at all). Be very careful of taking suggestions from strangers whose qualifications and motives can never be verified.

Knowlege will make you successful. Taking a chance on a stock, having a "feel", liking the company or hearing a talking head say the stock is great will increase you chances of blowing through your risk capital.

Good luck!

BTW: Transfering money is standard through ACH and free with most major brokers including the ones mentioned here.

Answer 2

You can go for sogoinvest - the online deep discount stock broker. They offers $3 per trade. $1 per trade for 90 days.

Answer 3

if there is no branch, send the funds from your bank to their wire number............also .they usually have a po address.........
ask them the questions about fees...........it's your money..
as far as investing,,pick up ''the little book that beats th market''..........you want your own copy to make notes in.............good luck.........

Answer 4

Zecco trading. www.zecco.com
It's free.