Just Opened Scottrade Account Suggestions

Discussion in 'The Okie Corral' started by smack-o, Feb 18, 2010.

  1. smack-o

    smack-o

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    I just opened a Scottrade account yesterday, I deposited $3,000. I would like to hear any suggestions anyone mat have as I am totally new to stocks. I would prefer to not lose the 3k but I am considering it a learning exp. and the money isnt significant enough to me to stress over.
     
  2. prism

    prism more ammo

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    buy some of your local electric company. watch the dividends roll in, and see how news affects their stock price and the price they charge you.
     

  3. BigDaddyK

    BigDaddyK

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    Wait for Toyota to tank after all of the recalls coming out and then buy low.

    edited to add that that was just a semi-joke. I haven't been following Toyota's stock price.
     
    Last edited: Feb 18, 2010
  4. user

    user VaLegalDefense

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    Look for stocks that pay dividends with a yield well above the rate at which the currency is being devalued, on the theory that even if the dollar value of these declines, they'll still pay for themselves over time. The yield is expressed as a percentage of the current market price, so it reflects a ratio rather than an absolute number.

    Secondly, look for stocks with a low price-to-earnings ratio as a guide to valuation (i.e., whether the stock's a bargain or not). That means that the cost of the stock is relatively low, compared to the amount of the company's income. Anything above about six or eight is already overvalued, in my opinion. (That means that the purchase price of the stock is six or eight times the value of the company's earnings per share.)

    Keep in mind the leverage effect of the purchase price. If you can buy a thousand shares of something because the price is low, and that stock changes by one dollar per share, you've just gained or lost one thousand dollars; if you can only buy one hundred shares, because the price of the stock is high, and the same thing happens, you've gained or lost one hundred dollars. The purchase price reflects demand for the stock, not the real value of the shares. Shares of well-known, very stable companies that pay good dividends are already overpriced in my estimation, because of the demand for such stocks by people who mainly are afraid of losing their money (like institutional investors). I mainly want to MAKE money, so I look for riskier stocks - companies with "small capitalization" for example, that look like they're going to do well in the future because they're on the front end of their steepest growth part of the business life cycle.

    After you pick some stocks, research them carefully; know their business and the risks they face and the people involved. Make a judgment about whether they represent real value, or whether the low price reflects the market's valid judgment that the company is a pig.

    Here are my two secrets to making money in the stock market: 1) have patience - things will change; and 2) buy low, sell high.

    Here are some free stock-screening tools (I'm sure ScottTrade will give you access to others - use 'em all to double check results):
    http://www.nasdaq.com/reference/StockScreener.stm
    http://http://screener.finance.yahoo.com/newscreener.html
    http://moneycentral.msn.com/home.asp
     
  5. paul45

    paul45

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    Darn.....that makes me jealous like a 4 year old. :supergrin:
     
  6. grahamw

    grahamw

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    a few that are on my mind right now
    Stocks
    Brk.b -- Berkshire Hathaway
    deo ---Diageo (beer vodka rum)
    Wag ---Walgreens

    ETFs
    VWO --Vanguard emg. markets
    DVY --Dividend fund
    LQD --corp bonds

    a few risky picks
    BQI
    MGM
    ETFC
    EXEL
     
  7. 45reloader

    45reloader Live Free

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  8. tarpleyg

    tarpleyg

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    Yeah, I hope you didn't include your correct phone number when you signed up. Those asshats at the local ScotTrade office will hound the crap out of you. They did me at least.

    Greg
     
  9. american lockpicker

    american lockpicker License to Il

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    Yea take all your money out of you scottrade account and put it in a CD at your local bank.
     
  10. Bilbo Bagins

    Bilbo Bagins Slacked jawed

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    Actually word on the street is Hyundia will be the next Toyota. Everyone I know who owns a Kia is not having good luck with them. Honestly, I think Nissan and Honda will see a lot more of Toyota's business.

    I would also look at good ol' Ford, didn't they not post a profit the last quarter.

    Also look for an industry you already know. For example we all know guns. I would have loved to have bought Ruger stock in 2006 when it was $5 a share. By mid 2007 it was selling above $20 a share.
     
  11. KevR

    KevR

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    buy mutual funds and don't pretend to be smarter than people that pick stocks for a living:upeyes:
     
  12. Bilbo Bagins

    Bilbo Bagins Slacked jawed

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    Funny, my 401K would have me think otherwise.

    Another stock to look at is foodstuff, looking at recent uptick in inflation something tells me food, guns, and ammo are going to get real important again.
     
    Last edited: Feb 18, 2010
  13. dmb12984

    dmb12984

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    buy a good growth stock mutual fund with a long track record.
     
  14. loki993

    loki993

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    A far as I know Hyundai owns Kia.
     
  15. pangloss9

    pangloss9

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    About a year ago, I read a book (Demon Of Our Own Design) that was written buy a guy who worked in the hedge fund industry. He told about how financial/hedge fund companies use giant computer systems to test every possible trading strategy they can think of against all the existing data. Some of these runs would take overnight. There is no way you can compete against this. Any success you have will be luck rather than skill.

    I suggest your take a look at The Random Walk Guide to Investing by B. Malkiel. Investing should not be exciting.

    If $3K isn't that important to you, just think of all the Glocks you could buy with it.
     
  16. Half-Breed

    Half-Breed ..... CLM

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    -----
     
    Last edited: Jul 27, 2010
  17. pangloss9

    pangloss9

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    One more thing: If you feel an absolute compulsion to try and "pick" winners, buy sector exchange traded funds (ETF). This will eliminate your single company risk. For example, if you'd decided to try financial stocks two years ago, you may have bought stock in a bank that subsequently failed. If you'd bought stock in a sector fund, you'd be out a lot of money, but not all of it. Generally, a company's stock correlates very highly with it's sector, so you preserve most of your upside potential, but guard yourself against total wipe out. It's a good trade off.

    I own one ETF: Vanguard Total World. It owns 2730 separate stocks. It's done very very well in the year I've owned it. Obviously, the single company risk is done away with, and sector risk is pretty much done away with. However, if the world economy fails, I'll be screwed (but that's why I have my ammo stock pile).
     
    Last edited: Feb 18, 2010
  18. 8-Ball

    8-Ball Old Soul

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    Scottrade sucks.

    If your stock jumps and you and others try to sell high at the same time, their servers overload and the site becomes unavailable.

    Scottrade f'd me.