I'd like to buy some stock...

Posted:
in General Discussion edited January 2014
I got 2 savings bonds for my 2001 high school graduation...they are getting 2.6% interest. I want to cash them out and buy some stock.



I've been following apple's stock for the past few years and I've noticed that it goes up to about 24 and then back down to about 13-14...



I'm looking at getting some APPL stock. I have $111 from the bonds that I'm looking to use. Are there any on-line places that don't charge for buying the stocks? I see that some require you to spend like $500- are there any that don't have a limit like this?



Thanks!
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Comments

  • Reply 1 of 23
    I'm not sure you'll find a no fee place anywhere. They have to make money somehow. As far as a minimum goes, this place says no minimum. I've never used them, found it doing a google search (no fee stock buying)



    http://www.sharebuilder.com
  • Reply 2 of 23
    thuh freakthuh freak Posts: 2,664member
    there are a lot of low-fee places, but like DawgFather said, probably no no-fee places. i used to use datek, which was 10/trade (and you can trade up to like a 1000 shares i think, at a time). they, i think, merged into ameritrade. the fool is where i would go if i was looking. they have a lot of great information, on various stages of investment. there might be some place with a deal like, open an account and get a few free trades; that's why i chose datek back in my day.



    and remember, just because a stock fit a trend doesn't mean it'll continue. past stock performance doesn't mean future stock performance.
  • Reply 3 of 23
    crusadercrusader Posts: 1,129member
    Eh stock is an iffy issue. I'd just go with your trusted broker, the commission for me was 3 percent on 30 shares of Apple, but ya may have a different experience.
  • Reply 4 of 23
    progmacprogmac Posts: 1,850member
    are you looking for this to be a long term investment that you will add to? or do you just want something to do with $111?
  • Reply 5 of 23
    tacojohntacojohn Posts: 980member
    I guess it would be long term- maybe something to build off of...any suggestions?
  • Reply 6 of 23
    bungebunge Posts: 7,329member
    Quote:

    Originally posted by tacojohn

    I guess it would be long term- maybe something to build off of...any suggestions?



    My suggestion is to invest the $111, but pay any fees from a separate pool of cash. Leave that little amount 'pure' if at all possible. Just invest it and don't think about it, hope for the best. Apple has always treated me well, but with that relatively small amout you can't do too much with it.
  • Reply 7 of 23
    thuh freakthuh freak Posts: 2,664member
    Quote:

    Originally posted by tacojohn

    I guess it would be long term- maybe something to build off of...any suggestions?



    what you can do is: put that much into apple [or spread over whatever companies you like], and whenever you have free cash (free as in, you've paid your rent, bills, credit cards, etc, and have no outstanding debts) throw it in the pool. in the beginning, the little extras you throw in may outweight the gains you see, but build it up for a while, and apple may surprise you [and this looks like its going to be a very good year for apple, with a bright future ahead]. now that i think about it, considering you're starting with 111, the littles you throw at it probably won't amount to much, so it might be a good idea to build it up outside the brokerage account and wait for the next hundred or so. that way, if the brokerage fees are per transaction, you aren't spending more on fees than you are feeding the account. also i don't recommend you invest in stocks in short term. particularly when you aren't going to throw a lot of money at it (that's not to say that short term stock investments are good with a fat wallet either). the gains you'll see probably won't outweigh the fees for a while.
  • Reply 8 of 23
    carol acarol a Posts: 1,043member
    Quote:

    Originally posted by tacojohn

    I got 2 savings bonds for my 2001 high school graduation...they are getting 2.6% interest. I want to cash them out and buy some stock.



    I've been following apple's stock for the past few years and I've noticed that it goes up to about 24 and then back down to about 13-14...



    I'm looking at getting some APPL stock. I have $111 from the bonds that I'm looking to use. Are there any on-line places that don't charge for buying the stocks? I see that some require you to spend like $500- are there any that don't have a limit like this?



    Thanks!




    Hi Tacojohn -



    I wouldn't get a broker if I were you. I'd google 'online trading sites' to see what the current prices are like, and then do the buying yourself, online. You still pay a fee, but much smaller than for a broker's commission.



    I have an account with Schwab, and their online trading fee is $29.95 per trade. Outrageously expensive. I also have an account with TD Waterhouse, and their online trading fee is/was $12.95, I think. Though I honestly haven't done any buying and selling for a while; so both Schwab and TD Waterhouse may have changed their fees by now.



    I buy as close as I can get to $1,000 per stock. That way, it's really easy to estimate your growth percentage per stock. Though, I have to tell you that I didn't even bother to open my monthly statements for the last two years...it was too depressing.



    So I would recommend that you get as close as you can to $100 worth of Apple or whatever stock you decide on, so it will be easy for you to track. Buy the Apple when it's at $13-14, of course, rather than when it's at its higher price levels.



    Also, you need to be aware that some companies may charge a yearly fee to maintain your account and send you statements. I think Schwab charged $25, for example. If you do buy Apple, I would recommend leaving your money in that stock for the long term, like 5 to 10 years. I think its greatest growth potential is down the road. Then the next time you want to buy more Apple, wait till you have around $500 to put in.



    Start watching CNBC in the morning for all the market coverage, and ads for online trading sites ; watch Lou Dobbs Moneyline on CNN. Go to the bookstore (or even the supermarket) and buy a few investment magazines. You'll see ads in them for online trading sites. Or, go to the library and read the magazines for free. Plus, occasionally those magazines do a comparison of online trading sites.



    Some places have like $7 per trade. Check google first, though, just for an easy way to get started.



    Only invest money you can afford to lose. Then investing will be fun for you.



    Good luck!



    Carol
  • Reply 9 of 23
    midwintermidwinter Posts: 10,060member
    Don't most online trading places require a minimum "deposit"? My Ameritrade account required I think $500.



    BTW, don't buy Apple now.
  • Reply 10 of 23
    carol acarol a Posts: 1,043member
    Quote:

    Originally posted by midwinter

    Don't most online trading places require a minimum "deposit"? My Ameritrade account required I think $500.



    BTW, don't buy Apple now.




    I can't remember about minimum trade amounts. But I bet some of these online trading sites offer 'no minimum trades' for new accounts, just to get people to sign up with them. I'm almost sure I've heard that as part of tv ads when I've been watching financial channels.
  • Reply 11 of 23
    billybobskybillybobsky Posts: 1,914member
    out of curiosity what kind of growth can you expect from stocks. I have a small inheritance that i have sitting in a cd... can i expect more than 2.6% a year?
  • Reply 12 of 23
    thuh freakthuh freak Posts: 2,664member
    Quote:

    Originally posted by billybobsky

    out of curiosity what kind of growth can you expect from stocks. I have a small inheritance that i have sitting in a cd... can i expect more than 2.6% a year?



    with stocks, its all very volatile, and you can't guarantee any rate really. but, if you put some work into it you can earn a great deal more than 2.6%. in my senior year in h.s. i built up some cash (like 500-1000) and played some tech stocks to the tune of a 20-25% gain in about 6 months. i pulled out when it started to fall though (so only like 10-15% overall gain), and i really needed the money. if you aren't going to put work into it, you should stick with the guaranteed low rates of a cd or bonds or something. maybe even mutual funds. the more risky the investment, the higher the potential payoff. its possible to make several hundred percent gain in the short term on stocks, but you have to be pretty lucky or have some insider info.
  • Reply 13 of 23
    carol acarol a Posts: 1,043member
    Quote:

    Originally posted by billybobsky

    out of curiosity what kind of growth can you expect from stocks. I have a small inheritance that i have sitting in a cd... can i expect more than 2.6% a year?



    I think I heard that the Nasdaq was up 40% for the year. hehe. That's basically tech stocks, of which I own a truckload! I have great faith in tech over the long haul.



    I studied the market for years before I took the plunge. Then in the fall of '98, the market took a 500 point dive. That's when I bought. I jumped in and bought 12 stocks - $1,000 of each. In the first year, my stocks were up an average of 85% from my purchase price. My $12,000 was up to $22,000 - and kept going up from there. My yahoo stock went from $1,000 to $4,000. It was all very exciting and I was SO insufferably smug. I have to laugh at myself. Then everything turned to dust.



    I think you need to start studying the market and learn everything you can. Take notes when you watch CNBC, and keep a list of stocks to research at online sites. When you start feeling comfortable, my advice would be to wait for the market to take a dive of some kind, and buy some stocks then. Only invest money you can afford to lose.



    If the Nasdaq is up 40%, some/many of my stocks must be too. I haven't checked anything in two years. But I didn't sell during the recession. I kept buying in my 403B plan when the market was in the dirt. I put in $10,000 a year for the last five years. The best profits will eventually come from all those stocks bought when the market was so far down.



    I know someone who bought Proctor and Gamble on the Monday that the market finally opened after 9/11. The market was down 1200 points!!!! I wonder what her P&G is worth now?
  • Reply 14 of 23
    midwintermidwinter Posts: 10,060member
    I picked up a bunch (for me) of shares of Apple at whatever its lowest point was after 9/11 ($12? $13? 14?) and am perfectly happy with $23 a share. I'm just hoping for another iMac...mmmmm AAPL at $125



    drool.



    Cheers

    Scott



    PS

    How was the first week back teaching? I don't have to start until Monday, so I'm frantically trying to get my syllabi in order.
  • Reply 15 of 23
    carol acarol a Posts: 1,043member
    Quote:

    Originally posted by midwinter

    I picked up a bunch (for me) of shares of Apple at whatever its lowest point was after 9/11 ($12? $13? 14?) and am perfectly happy with $23 a share. I'm just hoping for another iMac...mmmmm AAPL at $125



    drool.



    Cheers

    Scott



    PS

    How was the first week back teaching? I don't have to start until Monday, so I'm frantically trying to get my syllabi in order.




    Well, this past Monday seemed to last a century. By Wednesday, I was sure it must be at least Friday.



    And my sleep schedule got completely out of control over break, so that was really tough - getting back in line with the real world. I had planned to get SO much done! And though I got some stuff done, it wasn't as much as I really should have. But I'm not going to beat myself up about it. I made a few inroads into some rather sizable chores, so I will be happy with that.



    I really like my students. I feel so fortunate. They are so wonderful and sweet. If anyone wonders about the youth of America, well I think they are just great. And thirteen can be such a turbulent age! What's cool is that I tell them things about life, and they believe me, and take it to heart. Of course, I always tell them the truth; and I must be pretty convincing, because they buy it, and even change their own behavior! Amazing, huh? I feel like I have one of the best jobs in the world; but it is extremely demanding - relentlessly so. However, I guess that's all part of it.



    I've thought of teaching junior college. There's one near my house. I could quit teaching 13-yr.-olds, and teach students who are more highly motivated. I'd like to teach a class called Literature of the Vietnam War. It could be an integrated course between the History and English depts. What do you think? Might there be room for such a course?



    Good luck on Monday. 'Least you had more time to relax and get stuff done than I did. I'm jealous!
  • Reply 16 of 23
    midwintermidwinter Posts: 10,060member
    Quote:

    Originally posted by Carol A

    I've thought of teaching junior college. There's one near my house. I could quit teaching 13-yr.-olds, and teach students who are more highly motivated.



    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    draws big breath.



    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    draws another breath.



    Hooooooo! More highly motivated! That's a good one!



    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    Oh wait. You were serious.



    Yes. Lots of people are interested in literature surrounding Vietnam--O'Brien and Dubus all those guys are hot stuff, and I've never heard of such a class not making. Hell, I took a class on the poetry of WWI that was fascinating.



    Go for it!



    Cheers

    Scott
  • Reply 17 of 23
    progmacprogmac Posts: 1,850member
    for what you are doing, a DRP sounds PERFECT. basically you pick a solid company and give them a little money each month and any earning are directly reinvested. i wrote a lot about DRPs in this thread: http://forums.appleinsider.com/showt...&highlight=DRP



    that thread i made a long post and also linked to some good articles on the web.
  • Reply 18 of 23
    For a beginner like you, I suggest index finds. Index funds basically follow the market indexices like the Nasdaq or DOW. So if the nasdaq goes up, your nasdaq index fund will go up proportionally. They are usually very safe and profitable.



    An example of a good index fund is the QQQ (ticker symbol). It follows the NASDAQ 100 (top 100 stocks in the NASDAQ).



    http://www.google.com/search?hl=en&i...&q=index+funds
  • Reply 19 of 23
    carol acarol a Posts: 1,043member
    Quote:

    Originally posted by midwinter

    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    draws big breath.



    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    draws another breath.



    Hooooooo! More highly motivated! That's a good one!



    HAHAHAHAHAHAHAHAHAHAHAHAHAHA.



    Oh wait. You were serious.



    Yes. Lots of people are interested in literature surrounding Vietnam--O'Brien and Dubus all those guys are hot stuff, and I've never heard of such a class not making. Hell, I took a class on the poetry of WWI that was fascinating.



    Go for it!



    Cheers

    Scott




    Well, Scott, I hope you enjoyed your hearty laughter.



    But my friend who teaches 8th grade, also teaches night classes at a junior college. She amazes me with tales of telling the JC students to do something, and finding that they actually DO it! No throwing spitwads across the room behind her back; no writing and passing notes; no kicking the desk in front of them to annoy that student; no tripping another kid as he walks down the aisle; no steady stream of kids wanting to go to the bathroom, the nurse, the library, to get a drink, etc.



    I have kids in my classes who don't even speak English; yet I'm supposed to teach them to write an expository essay? Oh, and yes, their spring test scores DO count in my totals - thanks to "No Child Left Behind."



    And, after all, your students are paying to be in your class. There must be some motivation in their hearts?



    Well, I'm glad I asked you about the Vietnam lit. class. It's a course I would have been interested in taking; but I honestly didn't know if there would be anyone else who felt that way. I am encouraged by what you have said. Thank you!
  • Reply 20 of 23
    progmacprogmac Posts: 1,850member
    Quote:

    Originally posted by Existence

    For a beginner like you, I suggest index finds. Index funds basically follow the market indexices like the Nasdaq or DOW. So if the nasdaq goes up, your nasdaq index fund will go up proportionally. They are usually very safe and profitable.



    An example of a good index fund is the QQQ (ticker symbol). It follows the NASDAQ 100 (top 100 stocks in the NASDAQ).



    http://www.google.com/search?hl=en&i...&q=index+funds




    Another great suggestions. You can't lose with an index fund right now.
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