New To Board!!

[Karel]

That is because you have a cash account. In a cash account, you have to pay up front. And you don't get the money right away after you sell, because there is a settlement period (3 days, I think). Theoretically, the sale could be reversed in that period, because of some irregularity. This is one of the main reasons I chose a margin account: then you are able to buy immediately after a sell.

Regards,

Karel

[df21084]

I have another question, how come Ameritrade holds onto my money (it's not avail for trading) for a few days after I make a sale? It kind of makes it hard to get in and out of positions easily because I then have to wait three days to buy another stock.

I have a cash account (non-margin) with Scottrade. There is a 3 day settlement period, but I am able to execute another trade with the unsettled funds. You might want to contact your Ameritrade to ascertain whether you are allowed to trade with unsettled funds.

[MickyMouse]

Karel

That is because you have a cash account. In a cash account, you have to pay up front. And you don't get the money right away after you sell, because there is a settlement period (3 days, I think). Theoretically, the sale could be reversed in that period, because of some irregularity. This is one of the main reasons I chose a margin account: then you are able to buy immediately after a sell.

Regards,

Karel

If you have a IRA, then your only choice is a cash account, in my case. Don't know if there are other brokerage firms allow margin for IRA. If yes, I will switch to from Ameritrade.

Micky

[New-born baby]

Sharing

I sold for a $1.4 gain per share (nothing huge but I will take it) I learned my first major lesson in the stock market on my very first trade. I researched a bunch of stocks about four weeks ago, found MIKR - and bought. I was now a stock investor!! Three days later I had taken a 30% gain, and I became greedy and tried to "wait it out" for more profits. In the end, I ended up making a small portion of what I could have made if I just knew when my time to get out was. I have another question, how come Ameritrade holds onto my money (it's not avail for trading) for a few days after I make a sale? It kind of makes it hard to get in and out of positions easily because I then have to wait three days to buy another stock.

YA,

I know you are new to this forum and investing, but you are also studying business. Your studies have paid off already for you.

Now I have a question for you:
Would you mind explaining for us how you personally screen for stocks?
That would be a real plus for those on this forum.

Thanks!

[scifos]

Welcome aboard. I'm about your age, turining 22 in march. I started investing when I was 18 in a couple of mutual funds, but have been actively managing my own stock investments for about 16 months now. I would recommend that you continue to read and learn as much as you can. Its too early to be a selective reader, take some time and read about every kind of investing strategy around. Try running a few paper portfolios (fake trading with play money). That way, you can learn some lessons for free (but some you will only learn when you use real money, like keeping emotions in check). This will also help you figure out what investment strategies work for you. Then you can start drilling down on the fine details of your style. I would say that the best thing you can do it don't get too agressive. Like me you've got several DECADES to grow and a steady pace will result in a big retirement.

Other than that, ask all the questions you can. Everyone here is real friendly.

[YaMar2001]

How do I screen for my stocks? Well, I wish I could say I had some very complex methods but I really don't. I read through investors business daily, and the smart link pages, and I read about companies. I compare their earnings this 1/4 to the same quarter of the year prior. I look for the company to have increased earnings quarterly over the course of a few years. I read the book "How To Make Money In Stocks" by William O Neill and I try to stick to what he advises, although it's tough to find stocks that fit all the criteria. Thanks !

[New-born baby]

Wm. O'Neill--Jr.

How do I screen for my stocks? Well, I wish I could say I had some very complex methods but I really don't. I read through investors business daily, and the smart link pages, and I read about companies. I compare their earnings this 1/4 to the same quarter of the year prior. I look for the company to have increased earnings quarterly over the course of a few years. I read the book "How To Make Money In Stocks" by William O Neill and I try to stick to what he advises, although it's tough to find stocks that fit all the criteria. Thanks !

No, thank you!

[YaMar2001]

How about you... how do you screen for stocks? I have seen Mr Markets methods, and they seem to be simple... but I'm so new to this, that even those methods seem complex. I guess I will get there eventually, sometimes I feel like I am taking a shot in the dark with the stocks I pick, but I've had pretty good luck lately... I just wish I was more educated.

[casinoboy3]

Oh yeah ... one more thing. DIVERSIFY!

Take a look at what happened to CME yesterday. If you're diversified, and you're invested in good quality stocks (like the kind $$$Mr. Market$$$ picks), then this becomes just a small bump in the road.

CME is an excellent stock, but if it's the only stock in your portfolio, it'll make you sick! So diversify as quickly as possible.

YMMV.

I'm 19 and have been following some stocks for about a year now, and putting most of what I'm able to contribute to a roth IRA in MM stocks. Diversity is great, but it just doesn't make sense for me when I only have a few grand to invest with. I hate to put it in SPY or a mutual fund because its no fun and I'm not learning anything. Yet, I've found its not really profitable for me to go in with individual stocks either if I hold anymore then 5-6 stocks at one time. At the same time, a portfolio consisting of 4 stocks isn't really a good idea, as I've found with CME (because its one of four stocks that I currently hold). A $1000 investment and $10.99/trade means that Ameritrade takes about 15% of the profit I make on each stock I sell that has risen 15% (MM's target prices). Buying into a stock with less then $1000 only means Ameritrade takes more of profit.

Besides all this, I'm really not worried about it. I will hold as long as it takes to get the 15%, because using stops and frequently buying into and selling stocks significantly takes from my profits when I'm not trading with a lot of money.

Anyway, thank you MM for the picks and everyone else for the informative discussions... I don't post alot because I don't know alot and really don't have anything constructive to add to the conversations..

And good luck YaMar2001!

[YaMar2001]

I was under the impression Ameritrade just costs $10 dollars a trade, that they didn't take profits? Are you saying otherwise? Perhaps I am much more naive/new to this than I thought????

[casinoboy3]

I was under the impression Ameritrade just costs $10 dollars a trade, that they didn't take profits? Are you saying otherwise? Perhaps I am much more naive/new to this than I thought????

You're right, they don't directly take any of your profits, just $10.99 to buy and $10.99 to sell. I'm probably looking at it the wrong way, but a 15% gain on a $1000 investment results in $1150. So, (the cost of the trades)/(profit)=($22)/($150)= 15%. The cost to buy and sell a stock basically accounts for 15% of my profit. I'm just trying to use this as point of my trouble of diversifying with a small portfolio.

Like, for example, your gain of 1.4% on CMN. After comissions, you didn't actually make any money unless you went in with more then $1600. Starting out, I didn't have that much money to put in one stock.

[New-born baby]

Stock Screener

How about you... how do you screen for stocks? I have seen Mr Markets methods, and they seem to be simple... but I'm so new to this, that even those methods seem complex. I guess I will get there eventually, sometimes I feel like I am taking a shot in the dark with the stocks I pick, but I've had pretty good luck lately... I just wish I was more educated.

Well, I am not the usual investor on this forum. I have several diffo methods, including Wm. O'Neill's, but my favorite one is as follows:

1.I am looking for a dividend paying stock.
2.I want that stock to be in the top 6 sectors (if at all possible; I may make exceptions).
3. I look for stocks that have increased profits so much that the dividend has strong prospects of being increased.
4. I like esp. those companies that pay monthly dividends.

Why dividends? They help prevent the big selloffs (unless of course, the dividend is being reduced or passed altogether). But as long as the prospects are for the company to make the dividend, people tend to hold their shares, and even buy on dips. Dividends are especially nice is soft markets.

Some of the investors I talk with are just waiting for a dip to buy more. And of course, dividends are why I invest some of my money in Cans (see "Newborn Baby's Cans" thread).

Wm. O'Neill's method does not work well or even at all in bear markets. Most breakouts fail on the very day that they breakout, or at least, the very next day. It behooves us to be able to profit in any market. 2004, until the election, was a bear market year. Then from the election until Jan 2, we had a bull market, and then it was bearish until this Monday, Jan 31. The method I described has profitted me in a bear market.

[IIC]

I have a cash account (non-margin) with Scottrade. There is a 3 day settlement period, but I am able to execute another trade with the unsettled funds. You might want to contact your Ameritrade to ascertain whether you are allowed to trade with unsettled funds.

You can use unsettled funds to purchase another stock at Scottrade...You just can't sell the stock till the original funds settle...Well, actually you can sell it...I've done it in IRA accounts...but you get a nasty email and eventually they restrict your account...which means you can't use unsettled funds to purchase for 90 days...But it's a whole lot better than watching a stock go down the drain...you can always switch brokers. Anyway, I've never gotten past the nasty email stage on our IRA's...I have no prob in my cash account though...IIC