What is the best stock trading site for a beginner?

Question by aja: What is the best stock trading site for a beginner?
I’m 18 years old, saved a few thousand, really trying to find alternate ways to secure financial stability on the side of a good career. Heard about investing in stocks before, but not quite sure what I’m doing. What site would be best for me to purchase stocks from, and how do I decide which stocks to buy?

Best answer:

Answer by $ so fresh so clean$
If you don’t what you’re doing, you need to stick to bank CDs and money market accounts until you learn about stocks.

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7 Responses to “What is the best stock trading site for a beginner?”

  1. fivethirty79 says:

    despite how others may answer your question, do not put your money in CD’s or invest using a broker or financial consultant of any kind. the fact that you are 18 and are already asking how to invest in stocks means that you have the desire, intelligence and motivation to learn how to trade on your own. now…to answer your question:

    i use Tradeking myself. the trades are only $ 4.95, which is lower than most other sites by far. they also have great live customer support, so if you need help figuring out how to execute your trade, they can walk you through it.
    as far as picking stocks, start by tracking companies that you already buy products from. where do you shop? buy groceries? gas? car? clothes? department stores? fast food? beverages? this will give you a good starting place. start by tracking a stock for no less than 30 days. make note of the lowest and highest the stock goes within those 30 days. dont just keep track of the closing price, but keep track of where the stock moves throughout the day. the easiest way to see the 30 day high/low is to look up a stock symbol on Yahoo Finance and underneath the data chart is a link for 1M, or 3M. click that link and check it out. you dont want to ever buy a stock when it is currently at its highest price. you want to be able to get some movement after you buy it. also, never use all of your money at once. be prepared to buy more shares if a stock goes lower…this gives you a better average price on your investment. only buy stocks when the data you’ve collected allows you to feel that you are getting a good price. for example, if the 30 day high was 10.00 and the low was 7.00, then a good price might be around 8.50 or less…assuming the stock is not going down on that particular day you are buying. if it is, let it go down and then buy it. look at it like this….if someone was trying to sell you a bottle of water for 10.00, you’d know you were getting ripped off…thats because you know that water should be around $ 1.00-2.00 a bottle. you should view stock in the same way. determine what your “fair price” is and go for it.
    also, just advice, dont try to go for “big” profits right away. start by just making $ 100, or so, profit… and do that a few times. this will allow you to test out your theories and strategies without keeping your money locked into a bad stock for too long. just think of it as practice.

  2. jgro says:

    Hi Guys, I haven’t had much luck in the stock market but I do recommend you check out the Gold & Silver buillion market.
    Its easy to buy, sell and store. Awesome long term investment.
    Check out http://www.BullionMarket.com.au

  3. Avid Wad says:

    If you want to get the whole saving/investing thing started early, I would just toss the money in a set of index funds. I recommend Vanguard (low fees and high quality product – index funds are more or less all the same), diversifying across a few different indices (depending on what you wish, you could spread it across the S&P500 fund, the international equity fund, a corporate bond fund, and treasuries).

    AFTER THAT, I would then begin the “learning” phase. What most people do not understand is that putting your money in a few companies is unbelievably risky unless you really know what you’re doing. You can’t just invest in names you know, the key is how much you’re paying for them. With your money tied relatively safely in index funds, I would start researching individual companies. Take a look at the Investor Relations section of their websites, and read through the most recent 10-K. Don’t worry if its unbelievably confusing, it’s honestly not meant to be fully understandable by the general public. Your first time through, look through the verbal parts. Read the sections that describe the business, read sections like the Management’s Dicussion and Analysis – skim through some of the numbers if you wish. Watch, if you have access, financial news programs, the Wall Street Journal, finance sections of news websites like CNN. Go to Yahoo! Finance or similar sites and see what the recent news is for specific companies as well as the economy as a whole, and look at how this news is impacting stock prices. Use Investopedia and Wikipedia.

    What’s important that this stage is that you learn. Avoid getting trapped into the world of people who have never opened a 10-K but think they’re stock market geniuses because their uncle’s brother’s friend’s barber had a great stock tip. One really good thing to do once you get into college is go to the business school library if there is one and ask how you can get access to equity research reports of companies. I would recommend that, at all costs, avoid technical analysis. It’s an interesting idea but at the retail level (what you and 99.9% of the rest of the public is at), it’s just not a very good idea.

  4. Stocks says:

    hye its good that you started learning about stocks from now..and before you take any decision on whom to choose and what website you use ..do your research then only take a step.

    and ya i have some reference to you as you asked how to when and what to buy and sell..

    http://www.vantagetrade.com?ya=27

    its working gud for me.. try using it.. and yes do change the country in the top of the page.. by default is shows INDIA

    all the best dude

  5. John says:

    Personally, I think sogotrade is best among all online brokerages. You can get a lot of free trades: about 100 free trades with 500 minimum deposits. It has very good customer services, it also has live help, and you can chat with representatives about any question. After that, only 3 dollar for each trade, pretty sweet when compared with other online brokerages.
    referal code: 453934

  6. Shrey says:

    Dont listen to these people. You dont have to start with big stock. Start with Penney stock. If you make money GREAT. If you lose money its just few lousy dollars but you’ll get lot of experience from it.

    *****Scottrade.com******

    I lOVE IT

    Open a Scottrade account using the referral code provided below, and both you and I will receive 3 free online trades!

    Use this ReferALL code: YHPQ9275

  7. sam says:

    AIG was be a best stock to invest if you plan to invest for a long term, because AIG is too big to fail and beside AIG no longer need government bailout money. if you invest in AIG are now you returning profit is 10-30 times in 3-5 years.