If you had $50 to waste... :-) Then I would advise using a cheap brokerage like Soho at $3 per trade or Sharebuilder at $4 per trade. My first micro-money investment was 100 shares of ADST for $1 per share, and I sold 100 shares a few months later for $2.12 per share, doubling my money fairly quickly. But these are risky plays, no guarantees, so make sure it's money you can throw away before you try this and be prepared for the roller coaster of gains and losses. Set your desired sell point and SELL when you reach that point, and don't look back with any regrets once you've cashed in... ADST climbed to $3 per share a few months after I sold it, but it's currently only worth about $0.12 or less today.

Whether you buy just 1 share of a $50 stock, or 50 shares of a $1 stock, what you're looking for is a stock with the potential to double in its own share price in one year or less to get the most bang for your buck. And a break-even point on a $50 investment is a minimum of a 12% price gain to recover the $6 Soho buy and sell trading fees, so keep that in mind when analyzing stocks. A $100 investment only needs a 6% price gain to recover the same $6 worth of Soho trading fees and break even.

to succeed in the market you must have buy rules plus sell rules a lot of people see the market as a get rich quick scheme but the fact of the matter is if you follow a good set of rules and are able to spot trends you can outperform the markets in general even if its a bear market bull market or sideways market a lot of people like penny stocks but the fact of the matter is these stocks are very thinly traded and the BID-ASK spreads which means a higher level of volatility and prices aren't as stable as large cap companies that are traded on the NYSE that trade in the millions of shares avg volume most successful traders trade all the markets from stocks to currencies and commodities and use the others as hedges using options strategies to minimize risk and maximize returns and use options in the forms as insurance as well and to profit from volatility and make $$$ in a bear market

So, it is possible to trade with very little money, if you are patient.  Trade is wrong though,it would be investing?

Yes, it's possible to trade with very little money. And it's possible to double your money within 6 months to a year, but you do have to be patient. Day trading is a fool's paradise, six months to a year is a lot more reasonable time frame for an investment to pan out if you have a reasonable expectation that the stock price will rise again when the panic selling subsides. Personally, I like stocks that trade between $5 and $10 for my micro-money investments of $100 or less so I can buy at least 10 shares... penny stocks are just too thinly traded and the risk potential for bankruptcy and delisting is a lot higher for stocks trading at less than $5 per share. And I stink at trading options, which is the next best thing to being a day trader :-)

So, you must make a 12% price gain to recover trading fees and make the same as the broker. For a $100 investment.

Or, you must make 24% price gain to recover trading fee and make the same as the broker .  For a $50 investment.

 The stock market is sort of like investing in mutual funds. You have to think long term to get around a 8+% return. Unless you have 50k+ and lots of time on your hand I wouldn't recommend day trading. 

Mm, I can usually do better than my mutual funds in my own stock picks. My mutual funds average around 10% per year for a return, whereas doubling my money just once during the year is a 100% return on my investment. It's more of a gamble, but it's generally been worth the risk for me.

You are doing very well if your mutual funds are averaging around 10%.

Congratulations

 The highest raise in my portfolio value so far is 60%, perhaps because I was lucky picking the bullish stocks. I usually don't get a negative portfolio rate.

aldentevontino:

By your reply, I note you weren't concerned with the low ammount, so it IS possible?

If I had $50 to (waste) in an effort to better things, it would be no problem to take hold of just 1-3 or even 10 shares plus commision? I would not feel right if a broker would be laughing at someone with a mere pittance of stock. 

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Sure it's possible, but I think you'll have a better return on investment if you spend the money buying a girl drinks at a bar ;-) $25-$50 is nothing. You're almost certain to lose it all.

Trading is like taking the $50.00 and going to Las Vegas, where you turn around throw it over your shoulder thinking you're going to make a killing.  Investing makes more sense.

 

 lol. las vegas is faster :P

Im no millionaire but Ive been trading a think or swim account for about a year and half. I started with 10,000 and today im at 58645.83. I play two stocks roc and ens and buy/sell two times a day if things are going right. 

Your analogy of this to gambling is incorrect trading is a business while investing buy and hold strategy doesn't work you should get more education before making such a comment trading is a skill

But gambling is fun, FUN.

Investing in stocks is when you've calculated the fair market value of a company, and you're smart enough to not pay more than a fair price for that stock. If you're lucky, you might be able to pick up that company at a substantial discount to its fair market value. For example, Dow Chemical has a fair market value of $26 that I was able to pick up for $19 last December, a 27% discount to fair. It's currently trading at $28 this December along with most other stocks that are trading at a 20% premium to fair, a $9 per share, 47% capital gain for me just for hanging onto it for a year. However, Dow Chemical was trading for a mere $6 per share in March of this year, and whoever was smart enough to pick up shares of Dow Chemical at $6 would have made a 450%+ profit if they sold it today. No mutual fund in the world can even come close to making that kind of annual profit.

Gambling is when you have no idea what the fair market value of a company is. And that's when I can bluff and tell you that Dow Chemical is really worth $42, and hope that you're dumb enough to buy it from me at that outrageously inflated price.

And trading is a lot like playing Seven Card Draw. If you don't like what's in your hand, send two stocks back to the dealer and pick up two more from the stack to hope for a winning hand.

 

Good answer.

Well as it happens, I've always thought of the market as a gamble anyways, even if you knew what to do. The economy is so messed up, it's starting to look like a slinky! (Just wish it were as entertaining as one!)

I may someday go ahead and invest a small chunk into the market one day, but some things need to be worked out first, like how much IS acceptable to lose, where to place the funds and exactly how much I am wanting to get in 6 months to a year.

Right now, it's not going to happen, but the thoughts and preparation are underway! Thank you all for the input!

 

 

 

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