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A New Camaro, Excellent!
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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. :confused:

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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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
 

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A New Camaro, Excellent!
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Discussion Starter #4
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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See You On Course
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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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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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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
I signed up ,going to fax the app in the am.im a noob at this,any advise is appreciated im looking to invest in gm and ford.
 

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A New Camaro, Excellent!
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Discussion Starter #12
thanks guys. i will check them out.
 

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I signed up ,going to fax the app in the am.im a noob at this,any advise is appreciated im looking to invest in gm and ford.
If all you're really looking is to buy stocks in GM and Ford well than that's easy :lol:

It'll take 2 days tops to get your account approved and then you just have to fund it, and then BUY! Just don't be so quick about it, considering how volatile the market is right now.
 

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That's nothing. That's just a computer. There's people who hard code naked women into video games.
 
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