Help! Need to buy gm stock: broker or online trade? - ModernCamaro.com - 5th Generation Camaro Enthusiasts
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post #1 of 19 Old 10-10-2008, 08:43 PM Thread Starter
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Help! Need to buy gm stock: broker or online trade?

O.k instead of working i spent the afternoon in the office reading and researching how to buy/sell/trade stock.

But this sh*t is still confusing & have some unanswered questions.

1. should i use a broker or online trader, i.e. ameritrade, etrade, etc.

2. i noticed alot of online traders advertise stock trades as low as $7. or similar price, but say there is a another amount for the contract price. What does that mean?

3. I'm just trying to pick up maybe $100-$200 worth of gm shares. What's the easiest or cheapest way to get that?

Please excuse the ignorance & thanks for any help.

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post #2 of 19 Old 10-10-2008, 09:02 PM
 
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Ok. First off, you don't usually buy $ worth of stock. You buy shares of stocks. Usually in round lots of 100 shares. Odd lots are number of shares that aren't multiples of 100.

Second, the 7 bucks is commission from brokerages like etrade and Ameritrade. That's low, and for high volume customers. The typical commission fee is $15 a trade for beginners.

If you buy 100 shares of GM, it'd be 489 ($4.89 per share as of close today) bucks for the shares and 15 bucks for commission so it'd be $504 total.

However, life is not that simple. There are two types of ways to buy: market and limit. Market buys as soon as the order shows up at the stock exchange and the broker is able to fulfill the order. Limit means as soon as it reaches the price you asked, the broker will initiate a market order.

If you asked market and someone is selling 100 shares for $4.50, you could get it for $4.50. If you asked limit and $4.75, you could get it for $4.75.

You need a steady source of cash as a first time account holder, meaning a bank account to transfer funds to your new brokerage account.

Try this: http://www.ehow.com/how_544_buy-stocks.html <-- a bit basic

Last edited by Linfone; 10-10-2008 at 09:12 PM.
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post #3 of 19 Old 10-10-2008, 09:17 PM
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Treat this like a trip to the casino, if you have the cash to burn and are prepared to flush it, go for it

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post #4 of 19 Old 10-10-2008, 09:55 PM Thread Starter
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Good info Linefone. Thanks for the help. Keep the tips comming guys. I think i really need to get into this. Just want to cover all my bases before i go at it.

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post #5 of 19 Old 10-10-2008, 09:59 PM
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Unfortunately, percentage-wise, right now is tough to invest. Think about it, if shares are 4.50, and they drop by 2.25, you just lost half your money.

If shares were $100, and they dropped $2.25, you wouldn't lose very much.

But, if your glass is half full (which it would be if it was beer and I was near you), then you could also MAKE a lot of money if the stock goes up $2.25, and it's only $4.50/share. So, like was already said, treat it like Vegas, and roll them bones....

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post #6 of 19 Old 10-10-2008, 10:09 PM
 
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Right now, it's one of those good-bad times to invest. Everything's so low even a $1 per share gain is huge. It's bad because it's true for the other direction.

If you really think GM can survive, you should buy. (This means no bankruptcy or merger.) Think of it this way. You buy now at $5 a share. If and when Volt comes out and the EPA gives it a high mpg (and I hear it's could be measured in low 3 digit range), we could be looking at a resurgence in share price.

The market itself is volatile and unpredictable. There's an adage: "Buy on rumor, sell on news." Invest only if you think it's right. Invest if you have complete faith.
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post #7 of 19 Old 10-10-2008, 10:11 PM
 
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The easiest and cheapest way for you would be to sign up with an online trade site such as http://www.choicetrade.com (which I started using, it's noob friendly) and just buy a the amount of shares that you want
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post #8 of 19 Old 10-11-2008, 01:31 AM
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post #9 of 19 Old 10-11-2008, 08:18 PM
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Quote:
Originally Posted by Luwinkle View Post
Half the pages on that site don't even load for me.
They've probably gone out of business.

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post #10 of 19 Old 10-11-2008, 08:42 PM
 
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Quote:
Originally Posted by Luwinkle View Post
Half the pages on that site don't even load for me.
Choicetrade?
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