online investing

recently i decided that i need to learn about the stock market and how to invest and such. I figure the best way to learn (since i dont have time for classes) is through practice and experience.

I am fortunate enough to have a little money put aside for things like this. So, I would like to invest about $1000 in some high risk/high return stocks and just play with that on an almost daily basis for an hour or two a day. If i lose this money i dont care, i'm looking at this as a learning experience.

So my question is, does anyone have any suggestions on some good resources where i can find out answers to some common questions, like, "where do i start?", "what does this mean?", ect... Also, does anyone know of any online brokers like etrade, that have a pretty cheap price per trade?

Please dont say "google is your friend", i've tried that and it just made my head spin with the amount of information that popped up.

Any help will be greatly appreciated. Thanks

Yars

GOOGLE IS YOUR FRIEND!!!!

Actually I'm interested in knowing about this too. TTT

The Market Wizards by Jack Schwager is a great book for get a sample of different types of investing/speculating. Check it out on Amazon, you should be able to pick it up at a local book store.

Interactive Brokers ( http://www.interactivebrokers.com/php/main.php ) has a 15 minute delayed free game for trading stocks, indexes, etc.

Oanda ( http://fxtrade.oanda.com/ ) has a realtime game for trading Forex - IMO the hardest of the vehicles to trade.

Elite Trader ( http://www.elitetrader.com/ ) has forums and free educational pages. You should be able to find a path for study through their site.

Come back on with any questions or insights you come up with. There's a group of us on the forum who're searching for a path to profitable trading, we look to help each other with what little info we have.

Good luck!

Thanks Karl, i will definitely check those out

If you're looking to do day trading, I think you'll need a lot more money than that to get started. I'm not an expert whatsoever, but...

Think of it this way. You're going to have to diversify...e.g. not put all your money in one place. Let's say you put it in 4 different stocks at $250 apiece. If you're paying $10 per transaction, that's $10 in and $10 out, or a minimum of $20 per stock..times 4 stocks, that's $80. That means your stocks will have to go up by 8% (80/1000) just to break even. The only way to day trade and not get raped by transaction fees is to overcome it by sheer volume.

Like I said, I'm no expert..in fact, I'm pretty much a newbie, but I have a friend at work, who was a broker for many years, helping me out. I could be wrong, but this is just what I've seen with day trading in my little experience.

I was interested in day/swing/position trading at first too, just to dabble in it, but it requires a lot more capital than I currently have.

The stock market moves in cycles. Many of the same cycles exist on a daily basis as they do on a monthly basis. It was suggested to me to try some more long term stuff to start out with ...3 - 6 months, for example. Lean the basics of fundamental and technical analysis. When you can move money around without getting your face ripped off, you can start shortening the timespan, which increases the risk and reward.

Firstly you have to decide on the vehicle you wish to use, ie stocks, currencies, options, futures, etc. Once the decision has been made it gets even harder. I say this not to discourage you but rather give you a heads-up of what is to follow. As Karl said there are a bunch of us that are constantly picking eachother's brains to find a more expedient way to trade and profit.

If stocks become your vehicle of choice then books like that which Karl suggested are a wise place to start. You might wnat to check out a few websites, a favourite of mine and a few others here is www.fool.com. They have a 'fool school' that will help you get started. Furthermore, spend 3-6 months just on dummy/game portfolios before you stick a dime into any vehicle.

That might sound a long time but remember you can make money at any time in the market if you make the right trades; you can also lose money just as easily, and sometimes even easier. If you have any further questions, ask away? You will find someone on this board that at least has a basic understanding of the pros and cons of each investment vehicle.

I hope this helps.

PS Karl, thanks for the pivot point spreadsheet, I am slowly introducing it.

ttt for later

"$1000 in some high risk/high return stocks and just play with that on an almost daily basis for an hour or two a day"

My friend, you're going to lose all of that in transaction fees the first month.

ttt

The more you trade, the more you lose in commissions and slippage/ it will not work