How Do You Trade?

**Sensei** · 05-10-2011, 11:43 PM

Hi folks - doesn't look like this thread has had any activity for quite some time. Sorry to resurrect the dead.

I just opened a Sharebuilder account with ING. I'm not looking to trade, but to build wealth long-term. My goal is to put aside $100 each pay period (bi-weekly). You can set up automatic investments for $4 each, or pay $12/month and get 12 automatic investments. I understand the math and the value of going for the $12/mo deal.

My question to you wise ones is this - is it worth spending $12 on $200 worth of investments each month (6% commission). It would enable me to purchase increments of up to 12 stocks each month. Or is it a better strategy to pay only $4 and plop the whole $200 into only one stock each month? Opinions welcome.

**law87** · 05-10-2011, 11:51 PM

really want to switch to a place that give some free trades anyone got a good reccomendation sharebuilder charges is too much, i paid 8 every trade and 12 for premium

**Birchtree** · 05-10-2011, 11:51 PM

Nothing is free so take the $12/month but buy only dividend paying stocks and you'll be even before you realize it. Dividend reinvestments are free and pay every three months - good luck in building your base. You'll be pleasantly surprised how fast your stocks will grow.

**Birchtree** · 05-10-2011, 11:55 PM

Law87,

You can get 30 free trades with Merrill Edge online per month but you'd have to put up $25K on the Bank of America banking side - I'm starting to build that now that we've had a 100% increase in the SPX.

**law87** · 05-11-2011, 12:00 AM

Originally Posted by Birchtree

Nothing is free so take the $12/month but buy only dividend paying stocks and you'll be even before you realize it. Dividend reinvestments are free and pay every three months - good luck in building your base. You'll be pleasantly surprised how fast your stocks will grow.

i like the rush of investing in etf more. it keep me engage. i dont have 25k yet

do you know anywhere that will be cheap? so far i see optionhouse is the cheapest

**Sensei** · 05-11-2011, 12:30 AM

Originally Posted by Birchtree

Nothing is free so take the $12/month but buy only dividend paying stocks and you'll be even before you realize it. Dividend reinvestments are free and pay every three months - good luck in building your base. You'll be pleasantly surprised how fast your stocks will grow.

How do you know if the stock pays dividends vs. those that don't?

**Nate** · 05-11-2011, 12:54 AM

#1, you can do a google search for the stock ticker symbol youre interested in knowing about + the word "dividend" (IE: "DIS dividend") usually gives you a few leads..... http://www.dividend.com/ is usually one of the first results, but you may prefer other sites.

**jpcavin** · 05-11-2011, 01:04 AM

Look for Div/Yield. Google has a stock screener where you can select the range for the Div/Yield of stocks. Try the stock symbol KO as an example.
Value Line can also give you stats on dividend paying stock.

**Sensei** · 05-11-2011, 01:06 AM

Originally Posted by Nate

#1, you can do a google search for the stock ticker symbol youre interested in knowing about + the word "dividend" (IE: "DIS dividend") usually gives you a few leads..... http://www.dividend.com/ is usually one of the first results, but you may prefer other sites.

Great site. Thanks for the help!

**jpcavin** · 05-11-2011, 01:06 AM

Here is more info on where to find dividend paying stocks.
http://www.investopedia.com/ask/answ...end_stocks.asp

**Sensei** · 05-11-2011, 01:10 AM

Originally Posted by jpcavin

Look for Div/Yield. Google has a stock screener where you can select the range for the Div/Yield of stocks. Try the stock symbol KO as an example.
Value Line can also give you stats on dividend paying stock.

Thanks. I'll try it out. Learning a lot!