A few minutes ago I opened up a Sharebuilder account. I have been wanting to do this for about a year now but never had the nerve to. Finally I looked at my budget and decided to start with $50 a month. My gym membeship is giong to be cancelled soon so I will use that money to fund this. I figure it is a better use of the $50. Can any other Sharebuilder kin out there help a sister out with some advice?
Opening up a Sharebuilder account.
October 18th, 2006 at 01:29 pm
October 18th, 2006 at 01:52 pm 1161175970
October 18th, 2006 at 02:48 pm 1161179310
"Buy Cheap and Sell Dear" - Hettie Green, at one time one of the world's wealthiest women
October 18th, 2006 at 03:54 pm 1161183261
* Buy Low
* Sell High
* Collect Early
* Pay Late
Of course, paying late does not apply if it results in buying high (i.e. paying extra interest). Conflicts are resolved on a case-by-case basis.
October 19th, 2006 at 05:33 am 1161232439
Check to see what the trading fee is - $4 I think for Sharebuilder. Try to buy enough stock each time so that the $4 represents under 1% of your transaction costs. I know that it means - ulp - at least $400 worth of trading, but your alternative is really not being efficient with your bucks. (4/50 = 8% which would be an icky load if it were a 401K) You want your money to work for you, not for Sharebuilder. If you have to, save your nickels and dimes through ING to get to your 400$. Or see if you can store $ in Shareholder in a money market fund, if the interest rate is decent.
I also assume that your Sharebuilder account is a taxable account. Try to limit your trading - at least make sure you hold stock for at least 1 year, so that you get the long term capital gains rate. Now if you bought a dog of a stock and you need to sell, best not to hold it for a year. Sell dear, but wait a year.
When you first start out buying stock, buy quality companies. Remember that you are learning here.
Warren Buffett: "Rule 1 - Don't lose money. Rule 2 - see Rule 1."
October 19th, 2006 at 06:08 pm 1161277718