What do you think about investing in stocks as a beginner?

Michelle M: What do you think about investing in stocks as a beginner?
I think the stock market can be a smart thing to experiment in even without much experience, in contrast to most advice given. My reasoning is that you can “practice” picking stocks for a very small amount of money- even under $ 100. You can buy just 1 stock option and though you won’t make much, you won’t lose much either and you’ll have experience of watching the market. Sure you can argue that you can study the market without putting your money into it, but I think having something on the line- even if it is only a $ 20 stock option- keeps your attention and diligence. I am inexperienced with stock trading- it’s been years since I’ve owned stock- but I’m smart, I have a financial mind, and I am a quick study. I think I want to take a few hundred dollars and spread it over a handful of well-picked stocks and watch it for a few months to see what happens. Maybe I’ll make a profit, maybe I won’t. But I’m not risking much. If you disagree, please explain your logic. Thank you!
what do you think about zecco.com?

Answers and Views:

Answer by jebediabartlett
Oh! I agree… I found that it is an excellent, even fantastic< way to profitably spend your time. As you say, if you get in just a little…it's great experience ( and always something to " click over to" on the computer.
If you're into the " practice" part of it , a guy ( who occasionally answers here) has a nice site at:

Great place to see " how you can do" and look at the way about 1200 other traders play the game!
Good luck.
P.S. Correction: up to 1300 traders, now.

Answer by Feeling Mutual
Practice using Yahoo! finance for a year first.

If you buy $ 100 worth of stocks (100 shares at $ 1) per share, on a limit order, you pay about a $ 7 transaction fee, then when you sell you pay a $ 7 transaction fee, plus a small SEC fee.

So you start off with at least a 14% loss.

You paid $ 107 for $ 100 worth of stock, so it has to go up at least 14% for you to break even. That is assuming you are using Scottrade who charges only $ 7 for limit orders.

If you buy $ 1,000 worth of stocks instead (100 shares at $ 10 a share), you pay a $ 7 transaction fee to buy and sell. You start off with a 1.4% loss instead, your investment only has to go up 1.4% to break even.

If you sell your stock before a year is up, you have to pay the higher short term capital gains tax. Which is one reason why 80% of daytraders fail.

Good luck

Answer by Newbee
I agree w/ your idea, but about zecco, i’m not sure. I saw that many people posting answers in here did not recommend it.

Good Luck!!!