T Nation

Opening up a Brokerage Account?


#1

I'm thinking about opening up an account with E-Trade. Anyone else have one? Tips? Thanks


#2

Yeah. Buy low, sell high. Good luck.


#3

What do you want to do with it?

An important thing to realize is that executing a trade with a basic Etrade account costs $9.99. That means if you buy a stock and then later sell it you have to make more than $20 on the sale just to break even.


#4

Damn I didn't know that. I just wanted to get a little bit of experience so I can be more prepared in the future. Are there any other options?


#5

You could open an IRA and trade in mutual funds. Check the fee situation before you start, but I know the Roth IRA I have with Fidelity doesn't charge a fee on mutual funds and I don't think it's limited to Fidelity funds (it might be).


#6

Check your other options .. ETrade isn't the only platform .. there are lower cost per trade platforms out there that have decent technology .. OptionsHouse is ok .. What's your background with stocks,trading and investing?


#7

Guns hold their value.
Land is always going up.
Don't let some banker put your money to sleep!


#8

What about a T-Nation hedge fund? We're all so smart, we'd probably make a fortune!


#9

This. Full service brokers(like Etrade) have lots of analysis tools and such, which is why you're paying $9.99 per trade. If you can find free or better tools worth your money, you're better off going with a discount broker. I currently use Just2Trade ($2.50 commission) paired with Freestockcharts.com and a few other tools.


#10

MNKD is taking a little dip right now. You concerned at all? I don't think it's started to be advertised yet at this point though


#11

Not concerned at all. I added to my position in this dip. Short interest went up a lot too, so more kindling for the fire. They started their soft launch in Feb., which was more about education than anything else. Sanofi will begin marketing this quarter. $1.1M in Q1 sales is pretty solid for no adverting for a brand new biotech & treatment. It seems to be gaining more and more traction (and shorts seems to be putting out more and more BS articles).


#12

Pfft don't worry about a 9 or 10 buck trade. Just open an account with any big name that is convenient for you. Charles Schwab is convenient for me and trades are 9 bucks each. Most mutual funds are free as stated above.

Once you got your account opened, put whatever available cash you have into XLE and in 2-3 years it will be sitting pretty. In the mean time start reading and learning. Maybe set up some pretend accounts to practice and figure out what you are going to do with your money once the energy sector has bounced back. XLE is the energy sector, btw.


#13

Any love for Betterment.com? Not trading, but you can get a hold of an index fund or 16 and have it auto-rebalance and automatically shift assets to minimize tax impact. $100 balance and $100 monthly autodraft and the fee is only 0.35%.


#14

The problem is when you scale into/out of trades 9-10 per trade is terrible. If you are buying and holding for a long period then that is a different.

I would suggest IB / InteractiveBrokers if you have 25k+


#15

I have a small sum at Betterment at the moment .. sitting at about 5% return YTD - opened it in early to mid January - will probably see about 8% to 10% at year end IF the market performs well

Their portfolio is largely vanguard ETFs and bond index funds. I have about 10 different ETFs and indexes in the port

They have a "tax harvesting" feature that is supposed to minimize your tax exposure by harvesting losses. Their fees haven't affected my growth plus they automatically reinvest dividend payments.


#16

Investopedia has a stock simulator that you can use to practice trading and tracking performance.

For a beginner, ETF's are a great and simple way to start out.