Daytrading vs Using a broker...

[FortFunFoSho]

So if I know what I want to buy what will the broker give me?

 

[tweakmm]

Hopefully someone can give you a clue.

 

[TubStain]

what do you mean by "using an investor"? do you mean broker?

 

[FortFunFoSho]

yes. Sorry I will now change that..

 

[HappyPuppy]

Brokers make their money by getting you to buy and sell securities. If you buy and hold they make nothing after the initial transaction, so eventually, they will try to get you to sell and buy something else. It's called "churning." Unless you are lucky enough to get a good one who truly works for your financial well being you will get screwed.

Your best course, unless you want to gamble, is to buy into "no load" mutual funds and hold them for the long term.

To each his own, though.

 

[FortFunFoSho]

So then I should invest my money myself? Via an online account?

 

[Jombo]

daytrading: full time gambler

using a broker: paying a full time gambler to make you some money. and they make commision off of you whether you win or not, yay!!

 

[Hector13]

Originally posted by: FortFunFoSho
So if I know what I want to buy what will the broker give me?

i think you need to get your terms right. You can "day trade" through a "broker". A "broker" is just someone (or some place) you use to execute your orders.

A "full commission" broker typically gives you advice, research, and whatnot (and charges a lot for it). In this case, you would be talking to a real person (this is the type HappyPuppy is referring to, I believe).

You can also get "discount brokers", like an etrade, who don't really offer you any advice or research (not any of their own research, anyway). They just offer you a cheap way to execute your orders.

 

[FortFunFoSho]

Ok I apologize for the mixup of terms.

I am referring to something like etrade.

So what do you guys all use?

 

[DaveSimmons]

Visit www.fool.com and join for their trial period to read up.

The set up an account at www.vanguard.com and buy mutual funds. An S&P 500 index mutual fund like VFINX is the best thing to put your money into until you learn a lot more about the stock market.

Unless you really know what you are doing, stay away from individual stocks. FYI, I've been investing for a decade now and have 100% of my stock money in mutual funds, 0% in individual stocks.

Day trading = gambling, you might as well go to vegas or bet on the horses, about 2/3 of day traders lose money. Of the 1/3 who at least break even, very few make more that if they worked a 9-5 job instead.

 

[GSOYF]

Originally posted by: FortFunFoSho
So if I know what I want to buy what will the broker give me?

They basically are there to give you advice on what to buy....If you already know than just do it yourself.

 

[Hector13]

Originally posted by: FortFunFoSho
Ok I apologize for the mixup of terms.

I am referring to something like etrade.

So what do you guys all use?

I have been okay with etrade, but I don't trade all that often, so a slightly higher commission doesn't bother me. Also, I opened up the account 4-5 years ago (i think), so I haven't looked around much since then.

It really depends on how often and what (ie, stocks, options, funds, etc.) you want to trade. Having said that, I agree with
DaveSimmons that you should stick to broad, passive funds (or ETFs). But I usually prefer buying my funds from etrade vs. directly from the fund companies themselves. If you find a broker that has no loads for the fund families that you like, then I think it is much more convenient to have all your holdings at one broker.

 

[DaveSimmons]

> But I usually prefer buying my funds from etrade vs. directly from the fund companies themselves.

My account is with Schwab, but they charge $35 to buy Vanguard funds while you can get them for $0 if you set an account up directly with Vanguard. Schwab isn't a good choice for most people unless you have a big lump of cash to put in (like the 401k rollover I started with there) because they have a high minimum account balance.

ETrade makes more sense than Vanguard if you want funds from other companies and/or you do want to buy individual stocks. Vanguard supposedly offers general brokerage services in addition to selling their own funds, but I haven't looked at the details.