Stock Markets Exposed

would it be a good idea for me (a first time invester) to do trading online?

i opened an acount at scottrade yesterday and have been wondering whether i should consult a broker first any suggestions? i don't know many of the terms but they have many great online tools like s&p stock suggestions etc. I DO HAVE A SUBSTANTIAL AMOUNT OF MONEY. should i buy a few lower price stocks or even less higher priced ones? maybe some stocks to keep an eye and some to avoid

Public Comments

1. If you do not know what you are doing buying stock is the fastest way to lose your money. My suggestion is leave it where you have it and just take the time to learn. If you must do something buy mutual funds first, you can use your brokerage to get ratings on funds or look at morningstar.com. At least when you buy funds you have a professional money manager buying and selling stocks for you.
2. Unless you know a whole lot about the market, I would suggest that you hire an advisor.
3. These days if you have any interest in managing your own investments you are better off doing so. Depending on the brokerage firm, the commission on trades can be very high. I would advise you to subscribe to a service like Globeinvestor and just read, read, read. Basically, you learn by doing. How you invest your $$ depends on the type of investor you want to be. If you are a passive investor, and just want to buy some stocks for the longterm hoping for the longterm growth, then you are best off to invest in solid longterm performers - banks, insurance companies, utilities other well-established companies like PRoctor & Gamble, etc. If you are an active investor, if you're want to follow the markets daily and want to trade frequently, then my motto is, buy low, sell high. You can use your onlinne trade account to set price goals for stocks you purchase so that a sell order is triggered when the stock reaches that price. Most on-line brokerages do have staff you can contact by phone or even for on-line chats who may be able to make suggestions. I don't know what the transaction fees are for scottrade, I can tell you tradefreedom is $9.95 Cdn and questtrade is $4.95 Cdn so you might want to take that into consideration as well (not sure if you're trading in Canada or the USA).
4. dear always remember that Day trading is injurious to your health and WEALTH unless you are a professional and highly experienced trader always keep long time horizon or view invest in that way before buying any stock or currency study and do enough analysis your selves other wise you will be loosing your hard earned money in no time keep your eyes wide open and alight happy investing
5. You should learn the "50% retracement rule" and base your trades on it. Google for it.
6. Your first option should be to fund fully a retirement account. This is always a good investment regardless of who you are. If you have done this, or you wish to wait on the retirement fund, then one of the best things you can do is open a DRIP Plan. They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street. The best part is you get to choose from the best Blue Chip International Corporations in the world. You can have Toyota, General Electric, Royal Canadian Bank or McDonalds in your portfolio. Although there is always risk in stocks, these Blue Chip giants offer far less risk than most. They are inexpensive to start and maintain, and your dividends are reinvested for free. They are perfect for small investors, as well as big investors. They will allow you to sleep at night and not care about whether the market is going up or down.