Anyone use E*trade?

Flashback to a year ago my Mom is trying to get me to invest some of my savings into a Roth IRA Fidelity account. Which sounds good but to have great exponential growth you need to put in atleast 3k a year, a little hard to do when going to college and not working at the moment.

Then flash forwared to yesterday, and one of my friends has been using it(etrade) for a little over a month now and has made an okay amount. About 1-3 grand in the entire time span. (give or take this amount, i know it was atleast 1k, though) I'll be the first to admit i know nothing about economics but, i am seriously considering using them and see what i would be able to do with 300-400 bucks in an account. I like the independence of having an account i can do with whatever money i want, but am afraid that i may be too ignorant in this subject. I realise trading stocks or currency on the open market is a little different then having an IRA account. So basically i'm just wondering how easy it is to make money by using etrade or should i just go with the safer route with the IRA?

And yes i am seriously considering a rossa account just to view the business section.

Any help would be greatly appreciated, and telling me i'm an idiot for not knowing much about either won't do me any good.

 

It's not easy no matter what system you use. If you don't know what you're doing, you could/will lose your entire investment in seconds! Especially when the markets are as dicey as they are today, a neophyte doesn't stand a chance.

I know this probably isn't what you wanted to read, but practice with a mock account before you jump in with real money.

It's not as easy to make money day trading as you and your friend may think, in the long run, statistics show most novice day traders lose money. Also, if you're tempted to play on margin, you'll soon learn what the dreaded margin call means!

 

Yep. Aside from the market problem, a friend of mine accidentally hit the wrong decimal one day and lost $700 in a single key stroke! Online trading is not something you should be messing with unless you've done a LOT of research. It's a gamble, and right now the odd are NOT in your favor

If you want some financial advice, I'd buy some gold and sit on it. It's not as fun as the stock market, but if things to go hell like people think they are, as least you'll have something valuable Or send your money to a high interest savings account like the orange account an ING.

 

Today, for the beginner, cash is King. Gold is always a good hedge, and so is crude, if you can buy with anything other than the USD, which has gone down the drain!!!

 

You have asked a lot of good questions. Here is my simple take on them simplified. First off and most importantly, you only need to be silver subscribed to view the business and investment section. I think that is the best 15 dollar investment for you at the moment. There is a wealth of information and a lot of what you are asking has been covered in depth.

As far as staring an E trade account to day trade with no experience is a bad idea. While I feel it is a good time to buy and hold long term (I'm going it), there are better options for you. You are still in school, are not working, and have saved some money. Throw it in a high yield (if you can even still call them that) savings, ING, Emigrant. If you are dead set in putting money in the market I would advise you to get in a good mutual fund. That or go to the bank and exchange the 300-400 for Euro's.

I think a Roth IRA is a bad idea for you in your current situation. As you have said you are not going to be contributing enough money for it to be a good idea at this time. If you were planning to put a few thousand in the market, ok, using a Roth IRA is good because it can grow tax free and you can always withdraw what you deposited. But for what you are looking to invest, not worth it the trouble.

Save your money and do some research so you can invest with knowledge down the line.

 

You don't have enough, you don't have enough to lose, and you don't have the experience.

In today's market, the volatility WILL kill you, so stay in cash for the foreseeable future.

Investing may SOUND like a good idea, but not now, not today.

There are too many pump-and-dumps, and there are too many GREAT stocks that tank one day, rocket the next, and tank two days later.
Two weeks ago Bear Stearns was a 'decent' investment, as was GS, Merrill, etc. and look where BS is today. They aren't. As in don't exist.

 

Sounds, good and i really appreciate the advice. College is probably the worst place to try and make money. this high yield saving's account has intrigued me though. Can and does the interest change over time as the economy gets better or am i set at that IR? And you mentioned ING, but aren't they only an online bank? Is it possible to shop around for the best rates? lastly, how exactly is my money compounded, does it work like a regular savings account?

Once again, all the advice is greatly appreciated!!

 

+1

It is actually very easy to create a small fortune by daytrading. The only caveat is that you usually start with a large one.

If you want to invest, the first thing is to get a basic grasp of the fundamentals, and then try strategies with play money. It's a good way to get exposure. But honestly, it's not the right time to be playing the market. The safer play might be to start playing online poker. Study up first though

 

For sure, the boiler room boys never let up, nor do the mailings of 'The Next Hot Stock'!

Ya gotta know what you're doing, or the greed masters will get ya!!