Got 200 bucks to invest. Any advice??

mopar12 Brokerage Account

Posted by mopar12 on August 31, 2009 (01:55PM)

      Hi, Im a newbie. I got 200 bucks to invest. ANY advice would be welcomed.
buynhold Brokerage Account

Posted by buynhold on August 31, 2009 (02:11PM)

Hi, Mopar, welcome to TK.  There have been some similar threads in the past to your question, so it may serve you well to search some past threads.  In general, I think it depends on your style and comfort level.  When you look at comissions to get in and out of any position, you are going to be down 5% from the get-go with $200.  Keep that in mind.  Many people here feel that a dip in the market is about to happen, so it may be wise to find a stock you like, then wait a bit and try to buy at a lower price. 

What is your goal?  Are you trying to get high returns at potentially high risk?  Are you trying to find a solid stock that hopefully outpaces what you could get from buying a CD? 

I'm sure you'll get lots of suggestions if we know a little more about your mindset.
kelrod Brokerage Account

Posted by kelrod on August 31, 2009 (02:11PM)

I know the last thing you want to hear is do your research, but honestly that's the best advice I can give you. Other than that browse the forums. There are always good discussions about numerous stocks. Since you don't have much to invest, I'd recommend a cheaper stock so that you can buy more shares. One that's supposed to do well this week and one I have some stake in is CCTR ( http://community.tradeking.com/forum/topics/3043/forum_posts  --- view this thread for more details). Good luck with your trading!
buynhold Brokerage Account

Posted by buynhold on August 31, 2009 (02:18PM)

I don't know anything about CCTR, but I do know that each share would come with a hefty percent comisson to trade here on TK--$4.95 per trade plus 1 cent per share on a share price of 6 cents.  I'd be careful with the pennies.
Veneratio Brokerage Account

Posted by Veneratio on August 31, 2009 (02:46PM)

Take that $200 and buy as many used books as possible. Educate yourself first.
Bttc Brokerage Account

Posted by Bttc on August 31, 2009 (02:46PM)

Don't be overeager of or overly afraid of options. With only $200, they are a good way to get returns high enough to negate the commission--or lose it all.
Tapoulia Brokerage Account

Posted by Tapoulia on August 31, 2009 (03:38PM)

Ya I wouldnt by a stock. buynhold is right. Id hold that untill you get atleast 1000.
Owl Brokerage Account

Posted by Owl on August 31, 2009 (09:02PM)

Ok, free advice:
1. Have a look at _The Intelligent Investor_ by Ben Graham. A classic. Learn about value investing, which has proven the most powerful method over the long term.
2. I do not recommend a newbie playing with options, as they're a good way to get wiped out quickly.
3. I don't see the logic to Kelrod's advice, as the # of shares is irrelevant.
4. Save some more money. With $200, you're automatically down 5% just from commissions ($5 to buy, $5 to sell), and that's assuming you only buy 1 stock, which means no diversification. Not much point to investing only 200.
5. Avoid being taken in by either hype or panics. You want instead to take advantage of other people's excessive optimism and pessimism.
6. Look at my "new stock picks" thread. ;)
El Dorado Brokerage Account

Posted by El Dorado on August 31, 2009 (10:27PM)

Why not try options? There are three of them I’m thinking about. Already heavy into them but further out of the money. These are a bit quicker to show a profit if the stock moves up a small amount as they are close to the money.

GEW CH, 14 dollar call for March ask is 1.66 (GE)

AA DN, 13 dollar call for April ask is 1.79 (AA)

DLY BQ, 16 dollar call for February ask is 1.78 (DELL)

Just as an example as there are a lot of stocks out there, and you would only be able to buy one contract (100 shares) for 200 or less but for a hundred shares of either of them would be six times or more for what you want to invest. Notice they are way out in time, you can sell whenever you want, but will give time to overcome market corrections, hopefully.

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