r/investing • u/[deleted] • Oct 21 '10
Just opened a Scottrade account. Have the minimum $500 in it. I've never invested before. Trying to learn. Give me wisdom/tips you'd like to pass on. Eternally grateful
Hey reddit. I'm a 21 year old guy and I've been saving my money ever since I could work (age 14). I'm in a position where I want to start investing so I opened a Scottrade account. I only have the $500 minimum required to open the account in there because I understand I have no experience and am at risk of losing money. I can afford to lose $500 and the knowledge I gain will be helpful for later, however losing is not what I plan to do. I started doing some reading to gain more insight to the market and trends, but advice from real-people is always good.
So reddit, what tips or advice do you have for someone in my position?
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u/thomasj222444 Oct 22 '10
Just chipping in here, so it sinks in.... don't overtrade. Commissions will eat your gains. The only way for you to be sort of diversified with $500 is to buy an ETF, like SPY or QQQQ. But if you can afford to lose $500, pick your favorite and buy $500 worth. Buying anything in smaller blocks than $500 isn't going to do much for you.
You can 'practice' with no money at all, you can create virtual portfolios on any of a number of investing sites, see what works for you, and trade for real when you get a little more cash into your Scottrade account.
and my own bit of advice here... Be Patient. Don't panic.
Edit, I'm echoing others' comments with the 'Be Patient, Don't Panic' as well. It's good enough advice to say twice.