Enjoy the free Classified Ads! 24HourForums.com Home Thank you for supporting us. Click to enter Posts Of The Day.
Recent Posts Search by username
Search Contact Us Login Register
When logged in, click this to open up the Jumper for easier navigation. Click for details on our forum system in the Forum Center.
Click to be shown the (Top 10 and Management) forums listed in the top section of the site. Click to be shown the (Supported) forums listed in the middle section of the site. Click to be shown the (UnSupported) forums listed in the bottom section of the site. Click to learn about, or pay for, forum Sponsorships. Click for the Official Forum Voting Poll. VOTE! Click for info on owning a forum here at 24.

24HourForums.com > Supported Forums > 24's Money Business > www.sharebuilder.com

Share this topic...
Digg!  - Digg   Slashdot  - SlashDot    - del.icio.us    - Reddit    - StumbleUpon   - Facebook

 Moderated by: 24HourNut

New Topic
Reply
Print
AuthorPost
MrPaseo
Original500© Member

Peace Protector
Joined: 
Location: CAB Adder, Iraq
Posts: 1354
MyResume: 
MyJob: United States Army (Active Duty)
MyForum: MrPaseo's Life Of A Modern-D
MyLove: My wife, My daughter
MyWish: My wife and daughters happiness
MyFile: 
MyIntro: 
MySex: Male
Status:  Offline
MyPOTD: 
Return to topBottom of page
 Posted: 07:19 am

Quote
Reply
PM
Alert
voters: 0      
Hello, as many of you know I am approaching retirement after 16 years in the Military.  Before I retire, I am trying to learn all I can about investing and now that I have a base Mutual Fund portfolio, I have decided to learn about stocks.  I deposited a small (Clearly not enough) amount of money into sharebuilder and I am trying to use the site to learn the ins and outs of buying and selling stocks.  That said, I will be posting my lessons learned here to help save a few of you a few bucks.

Chime in if you have questions or comments.  Thanks for reading.

Ray

Ads appear if not logged in.

MrPaseo
Original500© Member

Peace Protector
Joined: 
Location: CAB Adder, Iraq
Posts: 1354
MyResume: 
MyJob: United States Army (Active Duty)
MyForum: MrPaseo's Life Of A Modern-D
MyLove: My wife, My daughter
MyWish: My wife and daughters happiness
MyFile: 
MyIntro: 
MySex: Male
Status:  Offline
MyPOTD: 
Return to topBottom of page
 Posted: 07:39 am

Quote
Reply
PM
Alert
voters: 0      
As with most financial aspects of my life, I produced an excel tracker to help determine if a purchase is a wise decision (Dollar cost wise).  Each trade costs 9.95 (Now or limit) or if I set up an automatic purchase for a certain Tuesday (They do it on Tuesdays for some reason) the cost is only four dollars per purchase. 

I quickly learned that you can not make money in this game with a small starting balance.  To bring your dollar cost down, you must make larger investments to spread the cost out to bring your resale cost into par.

Meaning:  If you buy 1 share for 10 dollars, there will be a 9.95 fee.  The total cost for the one share will be 19.95

You would have to wait until the NAV made it back up to 19.95, plus another 9.95 transaction fee so a total of 29.90 just to break even.

Let's say you buy 100 shares of the same 10 dollar stock.  That would be 1,000 dollars plus the purchase fee of 9.95 for a total of 1,009.95 for the purchase.  Plus 9.95 to sell the shares for a total cost price of 1019.90.  Divide that by the amount of shares you own and you would have to sell for 10.199 per share. 

As you can see, the saying, "You need money to make money" is accurate in this case. 

That was the first free lesson I learned.

 

With the tracker that I built, I can make multiple transactions (Hypothetical or otherwise) to see if the purchase is a wise decision.  For instance, I can do more than one purchase to dollar cost average my investment, however, each purchase costs 9.95 to purchase... though I calculate only one sale cost (But I can adjust that to whatever I chose).  I have on more than one occasion found myself wanting to purchase into a stock and felt the energy and excitement in wanting to purchase the stock, but when I went to this workbook, I found that it did not make sense to do the purchase because of the amount the share would have to go up before I broke even.  I quickly came down off the excitement back to reality.

If anyone is interested in seeing a copy of this let me know, maybe I'll just attach a copy to this post. 

Ray

Attachment: (Downloaded times)

Ads appear if not logged in.

24HourNut
Administrator

Body pillows rock!
Joined: 
Location: Long Island
Posts: 4932
MyResume: 
MyJob: Forumite Torture
MyForum: Say Hello
MyLove: A quiet, empty house (never happens)
MyWish: To obtain very cool mutant powers
MyFile: [Download]
MyIntro: [Download]
MySex: Male heterosexual
Status:  Offline
MyPOTD: 
Return to topBottom of page
 Posted: 01:43 pm

Quote
Reply
PM
Alert
voters: 0      
Yeah, you get killed on fees percentage wise if you buy small lots of individual stocks. Not the way to go as you see. Check out this place, you might find it interesting:

http://www.foliofn.com/index.jsp




The best human beings start good new topics and vote on the better posts.

 Current time is 02:54 am
24HourForums.com > Supported Forums > 24's Money Business > www.sharebuilder.com


Site Supporters
Posts Of The Day Mock Forums WowClassic



Themes and most mods done in collaboration with: WowClassic - powerful forum software with the best support service.
We are partners with Forum Owner Services
Powered by WowBB 1.7 - Copyright © 2003-2006 Aycan Gulez