Friday, December 16, 2005

First Investments:

So as I said in my last post, I finally decided to get up off my ass and invest in the stock market. Seeing as I was laid off, I didn't have that much money to throw around.

I had been given some great reviews about a specific brokerage firm so I decided to open an account with them. You should do your own research before opening an account and decide which firm is right for you. Some of my residents for example found one that lets you trade for $4 on Tuesdays but any live trades that you make are $14. I went with a company that has a flat fee of $7 all the time. I'm not doing any day trading so going with the other company might have been a better idea, but I'm satisfied thus far.

The firm I chose requires a $500 minimum investment to start trading so I figured I would send my money over the web and get going the next day, but apparently the firm had a problem with their e-check provider and canceled the service which meant I had to write a check and hand deliver it or mail it. Being in school and not wanting to waste money on gas driving 30 miles to deliver a check, I wrote a check and sent it to them, this meant I had to wait 6 days before I could start investing. I think this was actually good thing because it got me to relax and actually look into some stocks rather than jumping in with no research. I seem to do this often when I get interested in it. I jump right in and think about it afterwards and half the time regret doing it so quickly.

Well after talking to other students already investing in the market I found some stocks that looked good and I found some on my own browsing the web and reading the Wall Street Journal. I made my first investment on Tuesday and my second on Wednesday. The first was a fairly well thought out and researched investment, the second on the other hand was not so well researched. Yesterday the second company released its second quarter earnings and I lost a few dollars on that stock today. I feel however that this stock will rebound dramatically after it reports it's third and yearly earnings so I am not very concerned.

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