I've got about 5 to 10k to invest in stocks and shares. Wanted to buy shares without any leverage. Which stocks and shares would be the best to look at? Ones that are very active and moving through out the day preferably ones with low cost shares.
What type of investor are you planning or thinking you're going to be? Long term, short term, swing, growth etc...
Also, how are you with RISK? Are you planning to put all your $$ in one stock, or diversify right away?
I'm fairly new myself. But I spent 4 years playing stock market simulation games on various apps and websites. I still felt unprepared once I started trading live.
Get the app "Stock Wars," and the websites "www.howthemarketworks.com"
"Www.wallstreetsurvivor.com"
TASR is a decent growth stock for now. Don't know what returns you're expecting, but it has another $10 to go up before spring IMO.
If there was one small bit of advice that I'd give to new small time investors like myself it'd be.......NEVER INVEST UNSETTLED FUNDS! No matter what kind of profits you think you're missing out on, there's ALWAYS another short term gainer. But when you buy with unsettled funds, you HAVE to to hold it until the funds settle, which is normally 3 days. Your stock can do anything in that time. When you invest using only settled funds, you can buy and sell the same day. Just don't do that more than 3 times in 5 days or you'll be labeled a "Pattern Day Trader."
Hope this helps. Good Luck and Happy Trading!
Hi,
Thank for the reply and information really appreciate it.
I'm thinking of invested short term more like a scalper. Few hours a day and then out with my investement. I'm okay with taking risk with some of my investement but wouldn''t put all of it in one pool.
By settled funds what do you mean? Sorry for being a bit dumb here. I've got the cash there to use nothing borrowed.
I'm most probably going to buy and sell the same day, does it become an issue being labelled a Pattern day trader? Do they impose some restrictions on you?
I was using Halifax's fantasy trader buying nasdaq short term trade index shares TRINQ, got really good at it but when I openend an account with them can't seem to find the damn company using the ticker. Tried other brokers even then don't list TRINQ. Don't know where to find it, got really confident with it.
Thanks once again.
Mike.
I hate to be the bearer of bad tidings, but there may be a hiccup in your plans my friend.
Whenever you sell a stock it takes 3 days for that sale to "settle." If you sell stocks then immediately buy another stock(s) with the funds from the previous sale, then you have to hold your new stocks until the $ you bought them with settles. Which takes 3 days. So when you buy with unsettled funds, if you sell those stocks before that $$ settles it's labeled as a "Free Ride" and will get your account suspended for 90 days. Or on some sort of restrictions. I don't know what they are for sure, because I haven't done it.
When you wait for your funds to settle, typically three days from the sale of stocks. Then you can buy and sell the same day. But not more than 3 times in 5 days. Because if you do that, you'll be labeled a "Pattern Day Trader" and you'll be required to keep $25,000 in a brokerage bank account over and above whatever the value of your positions is. In other words, if you want to be a day trader, you have to have an extra $25K or else you can't do it daily like a real day trader.
What you can deduce from all this no doubt, is that it's all set up for the rich to get richer. But if you study, practice and do your due diligence, you CAN make a lot of $$! But if you don't have the time to really learn about what it is you're trying to do, there's a 95% chance you'll lose every penny.
Speaking of pennies.........STAY THE HELL AWAY FROM PENNY STOCKS!! You need 5 years of successful trading experience before you should even THINK about trading penny stocks! Same goes for FOREX trading. They make it sound so easy, but it's not at all. Not for a beginner.
Finally, I've personally never heard of TRINQ. But that ain't saying much. Unfortunately I don't have the extra funds at this time to pay for a professional type trading platform. But I've just stuck with what I was doing prior to my account(s) going live. I'll admit I'm not doing as well as I did in the simulations. But that's 75% to do with trading unsettled funds. They would have been good positions if I been able to sell when I wanted to. But since I had to wait 3 days to sell, it went up then right back down before I could sell. So I learned very quickly that trading with unsettled funds is STUPID. Just be patient. Use those 3 days for research. Since I've made my rule of not trading with unsettled funds, my returns have been MUCH MUCH better.
Hope this answers your questions. I'd be happy to try and answer any q's you have. But again, I'm still a novice myself.
I've got the money.
You need $25,000 to meet the PDT status and day-trade as much as you want. otherwise, like 'twotif' said, you will be limited to either settled cash or if you have a margin account, then you get 3 day-trades on a rolling 5 day period.
One big thing though. Cash accounts can day-trade as much as they want IF you buy using 'settled cash'. Settled cash (amount available to withdraw) is your friend. If you have $10,000. Technically you could buy with $3,000 (all at once or 3 chunks of $1,000) everyday and never get in trouble for freeriding, as every 3 days cash settles. So you'd just rotate a small portion of cash to make sure you always have some settled. Otherwise if you buy using non-settled cash you have to wait until the previous sale settles to sell the current buy.
As for $TRINQ, you may want to read this.