5 Responses to “I have some questions regarding stock trading?”

1. Ron on February 23rd, 2010 4:06 pm
   

   Yes, when you puy shares of a stock, you pay the brokerage fee for the trade and the full price of the shares you want to purchase. So, if you have $1000 and want to buy 100 shares priced at $10 apiece, you wouldn't get the full hundred shares unless you also paid the brokerage fee with additional money. Otherwise, the brokerage fee would be taken out of your $1000, and you'd get 98 or 99 shares.

   You can't pay for stocks on installment; it is all upfront payment.

   You might be thinking about dollar-cost averaging, in which you deposit money regularly into an account so that you can buy more shares of stock with it, but that is not payment on your original investment.

   I have used Schwab.com for nearly ten years, and it is a very good brokerage firm. I also recommend ScotTrade, as its brokerage fees are less expensive than Schwab's.
2. Ron on February 23rd, 2010 4:06 pm
   

   hi there !!

   I sense that you are completely new to stock market and that I would like to suggest you gnutrade which is specifically designed to beginners. You can check out learning center and see what actually is stock market all about?
   how the markets work?
   how to buy a stock?
   how to sell it?
   when to hold the trade?
   etc things will be known to you.

   you need not do payments once you buy a stock. for ex; at gnutrade you can buy a ftse with two types of bets..that is per point bet and basic bet and all you need is 5$ or 5 euro..minimum

   so gud luck ..take a tour at gnu and enjoy new year
3. Ron on February 23rd, 2010 4:06 pm
   

   For retail investors such as yourself you would usually pay a fixed fee to a brokerage house when buying stocks. Usually in the region of $10-$30.

   You also pay the current market price of the stock you wish to buy. You can later sell the stock at the market price at that time, but will also have to pay another brokerage fee at that time of approx $10-$30.

   Online brokerage houses such as etrade will help you set up a trading account and can also give stock advice: http://www.etrade.com
4. Ron on February 23rd, 2010 4:06 pm
   

   http://economystar.webs.com/

   good info on economy..
   you can also ask on forums etc
   and you get a stocktrading starter pack when you join
5. Ron on February 23rd, 2010 4:06 pm
   

   You won't really find a brokerage that will let you trade with extremely low fees as a retail trader (which you would be since you're not working on the floors or at a firm.) With that said, the cheapest retail commissions would be a company like IB ( http://www.InteractiveBrokers.com ). There are others, but they're a well-run company and fully regulated by the SEC so your deposits would be safe.

   No, you don't have to continually make payments on stock that you've already bought… but that's assuming you're trading with a cash account (as opposed to a margin account.)

   In other words, let's say your broker charges $1 commission for a stock trade. If you open a cash account and deposit $2000, and then you buy 100 shares of a $10 stock (100 x 10 = 1000), then you would have spent $1000 to buy the stock just like if you bought a TV with that money. On top of that, your broker charges you $1 for the service of putting your order onto the market. So in total, your account will drop by $1001. Since you deposited $2000, you still have $999 cash in your account.

   To clarify that, Cash in a trading account just refers to actual money (not paper bills and metal coins) that you deposited, as opposed to money that you borrow. If you borrow money to trade, then that would be a margin account (trading on margin), which would mean your broker is essentially lending you money to buy the stock and your deposited funds would only be used as collateral (read up on margin trading at investopedia.com if you want to know more.)

   In your situation, I would recommend you start with a cash account. That way, you can't lose more than you deposit — and no, you would not have to continue making payments after buying the stock. The only money you could "lose" would be a drop in the stock's price afterwards (and yes, that's very possible so be prepared.)

   If you really decide to trade on margin (preferably after you've read up on it and fully understand the risks) then yes, you would be paying interest on it, so technically you would have to keep making payments on it, but that's because you would be borrowing money in order to buy stock — and borrowing isn't free, not even for the US government

   You might want to check out investopedia.com to learn more about how it all works before you risk your hard-earned money on this. Also, if you need to look up a company's information, Yahoo runs a nice site at http://finance.yahoo.com/

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