First time E-Trader, Got any suggestions>?
Hey how goes it all!!! I am new to the whole online trading and have never done any real trading of my own. I have been doing some reading and plaing around with some simulations and i don’t do too horrible, but i want to experiment with Penny Stocks and other small caps. I am trying to stay in the 300-500 total investment to start with. just to keep losses low. I have a job where i work on the weekends. i turn 45 hours and sit at home doing nothing but a few side computer and vehicle repair jobs. I WANNA DAY TRADE !!!
PLEASE HELP ME!!! any suggestions will be greatly appreciated!!!
SFEG, Santa Fe Gold Corporation. $0.86 a share and just received a “Strong Speculative Buy” rating from a respected industry analyst with a target share price of $3.00/share. If you’d like, read the anaylsts opinion (it’s only one opinion) at http://biz.yahoo.com/bw/080402/20080402006017.html?.v=1 or at www.jmdutton.com .
That said, mine is only one person’s opinion. One should be wary of recommending stocks…recommendations ruin friendships. Suggest someone look further into a certain stock and make their own decision.
In your case, the smartest thing to do with your money, given your intention of “day trading” and “experiementing with penny stocks” would be to find a company with solid financials that you believe has unbelievable potential and is yet to be widely recognized. How do you find one? Use E-Trade’s “Stock and Fund Screener.” You’ll need to learn terms like P/E, EPS and EBIT in order to most effectively use this screener.
You’ll need to be careful with active day trading using a pot of only $300-500. Like another answer said, and said well, “That little to invest that any individual stock picks will most likely be a disaster – you don’t have sufficient funds to spread the risk and any profits will be eaten up by trading fees and short-term tax liability.” This is why I’d recommend purchasing a single stock and holding it for at least a year (in order to avoid heavier taxation). Maybe you can save up another $300-500 and purchase a second stock…keep doing so and see how it goes. However it goes, please look at it as payment for education as you’re likely to lose money by day trading penny stocks, especially with little-to-no previous experience.
Good on you for your efforts to learn something new and best of luck!
How To Trade Penny Stocks – How To Trade Penny Stocks Online