Anonymous
Anonymous asked in Business & FinanceInvesting · 8 years ago

Stocks Question - discount broker?

Hello everyone,

I am new to the stock world and am currently reading up on stocks and how they work, etc.

I was just wondering what makes a good discount broker vs an actual broker firm? I am interested in doing it solo so I want more of the online stock trade - I like being able to handle and control what I am doing, especially in a bear market I want to be able to deal with the risk myself.

Any advice (not related to which stocks to pick) after I understand the market a little better I may ask a question about stocks.

So as noted, any advice would be appreciated, what makes a successful investor vs. what everyone else says about investing. I don't see it as risky as long as you watch closely and invite change, and be able to handle it long term and spread out the investment.

Thank you.

4 Answers

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  • Anonymous
    8 years ago
    Best Answer

    An introductory book like _Stock Markets for Dummies_ is a good place to start. This will address most concepts--including what to look for in a discount broker.

    Investors Business Daily (IBD) is a solid daily resource (and its complement, www.investors.com ). It's a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O'Neil too--he's the founder of IBD.

    Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can. Eventually, you should open a brokerage account and paper trade for a while--this is practice (not real money), which you should do extensively before you put any real money at risk.

    Source(s): Investing since 1987
  • 8 years ago

    I do my trades through Scottrade and have for the last 6 years i have found them to be quick and accurate with the process of buying selling and shorting stocks. They lack a bit on their charting system but i also do option trades through OptionsExpress and their charts seem to be better and more accurate.

    When you open an account with a broker like Scottrade or Etrade you will have to decide whether to open a cash account or a margin account. I suggest a margin account. This will make trading less complicated. You don't have to use the margin funds but it will clear transactions faster. If you chose a cash account it takes several days for the transactions to clear. But most brokers have different qualifications to open a margin verses a cash account. One such qualification is minimum amount you deposit in that to start it. Most brokers require you to have at least 2000.00 to start a margin account. The other advantage of a margin account is you can buy up to 4000.00 dollars worth of stock with your 2000.00 this is called leverage. A cash account can be started with less money like 500.00 or so to start. Some like Sharebuilder may have no minimum i'm not sure.

    I would further suggest you go on one of these broker websites and they will let you practice what we call paper trading, which is where they open a virtual account or not real account and pretend you are trading. They will start you with like 25,000.00 fake dollars and keep track of your trades and calculate the profits and losses it will give you a better understanding of how things work without risking real money

    Here is a link to some strategies to use on a former article i wrote on YA

    http://answers.yahoo.com/question/index;_ylt=Ao8Sh...

  • Anonymous
    8 years ago

    The major on line brokers are generally pretty good. The favorites are Fidelity, TD Ameritrade, Scottrade, and Charles Schwab with Scottrade being the most popular among AAII members perhaps because of its slightly lower transaction cost. Personally, I use Fidelity and TD Ameritrade. I like Fidelity's research offerings, but I like TD Ameritrade's interface better. Just my personal opinion.

    I am not sure there is any stock answer to what makes a successful investor. Different investors have different techniques to accomplishing their goals. You will have to develop your own style. There are countless books that have been written on the subject. They number in the thousands.

  • 8 years ago

    I use FIRSTRADE, and I suggest it to you as well. IT'S CHEAP and easy to use. the customer service is reliable.

    a friend of mine uses SCOTTRADE.

    if you want to sign up with FIRSTRADE, let me know; we could both make 50$ out of it, if I refer you to them.

    Source(s): personal experience
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