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Do online Stock trading sites actually work?

Do online Stock trading sites actually work? Topic: Case stock ticker
July 17, 2019 / By Gale
Question: I want to start trading and buying and selling stocks, so I would like to open an account on one of the sites. Do they work, which one should I use, and how do they work? Thanks
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Best Answers: Do online Stock trading sites actually work?

Derby Derby | 3 days ago
Yes, they certainly do. Two of the best ones are Scottrade and E*Trade. I personally have an account at E*Trade, but have friends who use Scottrade and have heard only good things. Both sites have extensive educational material on investing which, if you're serious about this sort of thing, will probably find helpful. E*Trades Educational Page: https://us.etrade.com/ctnt/investor-education-center/educational-resources?ploc=edu-nav First, you'll need to setup an account, which can be a rather annoying process and takes several days or even a couple of weeks. You need to give them lots of information about yourself, as well as which kind of account you'll be using (Cash, Margin - trading "on margin" is where, rather than using cash, you use things as collateral to fund your trades, and so, if you do badly, you could lose the things you use.. like your car - Retirement, etc.) and then you need to provide them with your bank account. For simplicity, I will only describe what you need to do if you open a Cash account at E*Trade; I've never made a retirement or margin account. Once you do that, they'll make a small deposit in your bank account (a few cents). After you see the deposit in your bank statements, you'll provide them with the amount they deposited. This process verifies that you are, in fact, the owner of the account that you provided. After this has occurred, you're almost ready to start investing. All you now need to do is to put money in your account! For eTrade, at least, the minimum amount is $500. This is what I started out with. However, preferably, you will want more in your account, as I will explain in a minute. From here, you're ready to trade! All you need to do is to identify what you think will be a profitable company to invest in (Ford, for example). Once you do that, you decide how many shares you will buy. Lets say that you have $500 in your account and are planning on buying Ford (whose stock ticker, or abbreviated name, is F, which I will be using for the remainder of my description). As of yesterday, F was at $15.68. This means that you will be able to buy 31 shares (500/15.68*31). This means that the amount of money left in your account will be 13.92. However, the transaction isn't over. You see, the way companies like E*Trade make money is through things called "commissions." A commission is a sort of a fee that you have to pay each time you buy or sell a stock. For E*Trade, the commission for purchasing a stock is $9.99. So, you actually wont have $13.92 left in your account but $3.93. Alright, so the time comes to sell your stock. Lets say that F is now at 18.00. For 31 shares, that puts your revenue at $558 (31*18), and, since you paid $468 when you bought F, you've made $72 (almost 15%)! However, it's not that simple. First off, you need to remember that you paid $9.99 in commission. That brings you down to $62. After that, you now need to pay for the sale commision, which is $10.00. That now brings your revenue down to $52. From here you will need to pay taxes on your income. I cannot determine how much you will have to pay in taxes, but it will probably be above $10 and so that means that you've made less than $40 from your original $72. This is why it is better to trade with more than $500 in your account; when you have more money, the commission you have to pay on your trades is more inconsequential. If you were trading with $1,000,000 (which isn't actually possible, you'd need a professional broker for that, in which case you wouldn't actually pay commissions but don't worry about that!), $20 in commissions would reduce your revenue by a tiny amount, less than a thousandth of a percent. In comparison, $20 in commissions from your $72 gain reduced your 15% revenue by 30%! I had said so much more but Yahoo says it was too long. Sorry about that. Good luck and check out the educational pages on ETrade and Scottrade!
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Derby Originally Answered: What do you think of this stock trading theory?
it's even easier to loose 1%..... And don't forget commissions and taxes you have to make more then 1% just to acheive 1%. As an example, you invest $1000 and make 1%. That comes out to $10. But even at scottrade, you pay $7 to buy and $7 to sell and $3 in taxes. So your 1% gain of $10 costs you $17. Even on $10,000, your gain is $100 but taxes and commisions take nearly half of it. investing isn't like pitching quarters.... you actually need to learn things and it's a lifelong endeavor.... There is a difference between 'traders' and 'investors'. In the long run traders are statistically losers. That's why there are so few Warren Buffets in the world. success in anything of value takes effort, knowledge and experience. There is not some little trick that is going to make you rich. If you're interested, here are some things you can learn to be an investor. It's not as exciting, but it is more successful.... you can always use 10-15% of your portfolio to gamble with, but learn to be an investor with the bulk of it. Start by getting a subscription to Barrons or Investors Business Daily… Do this for 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to understand the terms and things that investors are looking for and what they are afraid of Go out to the internet and search on the following subjects. Become very familiar with the concepts. Asset allocation Long term investing inflation Roth ira vs ira Large med small cap Value vs growth Indexed mutual funds No load mutual funds ETF Sector funds Bonds CD preferred stock dividends International funds Market cycles volatility Fundamental analysis Technical analysis In most cases, I think it is wise to use indexed mutual funds and ETF's to build the base of your portfolio. Good luck

Benjamin Benjamin
Asking for someone to pick a good on-line broker for you is like asking someone to pick a good car for you. A stranger only knows what they like... they know nothing about what you'll need. First goal: Figure out what you'll need by learning. If you learn the basics you'll have a better idea of what tools will work for you. If your goal is to hold stocks for very short times you want to learn trading. The key skills are; Psychology Risk Management Technical Analysis Read 6-12 books on trading (which is different than investing). Pick books from these two lists; http://joefahmy.com/2010/03/17/recommend... http://www.chrisperruna.com/2010/01/10/2... The platform you pick is critical...... because it will either help you make money... or not. Good luck!
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Abbott Abbott
Hi there, I've been trading the market for just a few months. My cousin actually told me about this website (http://pennystocks.toptips.org)and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more. For more info: http://pennystocks.toptips.org Bye
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Shirley Shirley
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109
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Petula Petula
They definitely work. You can research stocks and mutual funds. There is a cost to buy and sell stocks, but mutual funds usually have no fee. I would suggest tirade through scotiabank. If you don't have a tax free savings account yet, then open a trading account as a Tfsa and then you don't have to pay tax on your gains. Hope that helps
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Petula Originally Answered: A stock is trading at $31.11. Call options.?
1. Name of the company/ stock symbol. I can answer the question in a few seconds of what to do once I knew that. 2. Option Strike is $35 but what contract month? Based on the question of what was asked: The underline stock is $31.11. Because the stock is trading below the $35.00 contract strike, the option has no intrinsic value. If for example, the stock was say $35.50, your intrinsic value would be the amount over the $35.00 strike. In this example, that would be .50 cents. Time premium: Anytime you have an option that is trading below its strike price (in this case below $35.00), the only value of the option left is time (value) to expiration. Knowing nothing more, my guess is that you have a May contract and the option in high probability will expire worthless. ************** For those who are not familiar with some of the buzz words used here: Options Glossary http://www.optionseducation.org/help/glo... Where to learn more about options: http://www.optionseducation.org/ http://www.cboe.com/ An Investor's Guide to Trading Options http://www.optionseducation.org/resources/book/default.jsp

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