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I have $50 to spend on stocks what do u reccomend?

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My 9 & 6 year old kids have Sharebuilder accounts (custodial type.) I send 50% of their chore/allowance money to it and when they hit 100 bucks, I let them choose how to invest it. My daughter's initial 300 dollars (a gift from a family friend) has gone up to $450 (stock value) in under 2 years. If I were you, I'd keep sending every dime I could to the account (it sits in a money market fund until you invest it) and let it sit until I hit at least a hundred bucks, so the commission ($4/trade) is spread out further. Have your dad open a separate account with Sharebuilder for you (custodial with him, the account won't cost anything, you can figure out what portion of the money market account is yours more easily, and he can worry about the taxes involved) so you can watch the account grow. Still looking for more specific suggestions? I don't know, I suppose you could try some Ford stock. Ford gives pretty good dividends quarterly (set up the account to automatically reinvest dividends so your # shares will grow over time) and is currently selling fairly low (under 8 bucks/share.)
 
I disagree with you guys that say that fifty bucks isn't worth investing and that you should only try mock trades. This guy is 15 and it is an EXCELLENT idea to start out his portfolio now, when he's young, has many years for it to grow, and has nothing to lose if he makes mistakes. Think of it like learning to ride a bike by using training wheels. He can learn a lot and even if he makes mistakes, he'll be far ahead of most kids his age because at least he's got a start.
 
I would recomend he spend his fifty dollars on a book that teaches you how the stock market works !!

for example this one This One

now he would have like 20 left and with that i would have a nice lunch and read the book.
 
Originally posted by: raildogg
C'mon guys, why encourage him to waste his $50 instead of putting it somewhere? Maybe he can learn a few things about stocks in the process. If he currently is an active investor, he can pick up a few more things. Buying a cheap stock with that money makes sense in my opinion. Penny stocks are not as bad as everyone says. Yes, most of them are bad. But if you do the proper research and are not careless, then you can be ok and even come out ahead.

Maybe search for good under $5 stocks. Also, what broker do you have?
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i agree with raildogg. the OP should be encouraged to start investing in stocks if he/she hasn't started already. there's a lot of good advice here in this thread... the only thing that makes it weak is the fact that people are calling other people names.

chipy
 
Originally posted by: Schfifty Five
OP let me put it like this.

If you're lucky, you can find a brokerage that only charges $7-10 commision per trade.

Scottrade for example is $7. I use Fidelity @$8/trade. Now, you buy a stock, $8 goes to commission, that means the stock can't be more than $42.

Now, if you want to sell, you have to pay another $8 commission.

So out of your original $50, you already are down $16 just in commisions.

That means you really can only buy a $34 essentially (unles of course your stock goes up a lot). And let me tell you that a $34 stock won't jump $16 anytime soon....or rather, it's extremely rare that a $34 will go up $16 in any short amount of time. Maybe a few years, but nothing short term.

Therefore, you really are better using that $50 and buying something or even gambling...you probably have a better chance of making moeny through poker or blackjack. Just don't spend it on stocks, you won't win....or it will take years for you to break even.
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Couldn't say it better myself. I'd open up a savings account (ING DIRECT for example as people have mentioned) and save up a bit more. When you get maybe $250 - then I'd begin looking into buying some stocks.
 
What you should do is learn everything you possibly can about investing in equities. Then start trying to make money.

So for now just hold on to your money and start using one of the simulators out there. Make all of the simulator decisions as if it was your own (or client's) money. That means do your homework before any transaction, and no gambling.

<-- has his own "for fun" stock tracking simulator and wishes buying 500k of apple @ $40/share was for real, did that last sept 🙁
 
Originally posted by: mugs
Originally posted by: raildogg
Originally posted by: JLGatsby
$50 LMAO.

OP, you're an idiot, that's all I can say.

Spending anything less than $5,000 on stocks is a waste of time.
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Who are you calling an idiot?

People start out investing small in the stock market and move up as they learn more about it. Not everyone is a long term investor. Many want short term returns. Some people want to make a small profit off of a stock and sell it and use to that money to buy something else, etc.
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The only way he'd come out ahead after commissions is if he held it for a long time or if the stock went up astronomically. I wouldn't call the OP an idiot, just naive. At least JLGatsby set the bar at $5k, not $50k like the other retard.
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Is $50k really that retarded? To have a properly diversified portfolio, you need lots of stocks in lots of different asset classes. Each stock has to have a lot of shares to make the commission on either end not as bad, proportionally.

Now...if you're talking mutual funds...
 
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