Under $5 Stocks To Buy? Advice?

[Unicorn27]

Any recommendations for a decent stock? Ready to slowly put $$$ in and learn

[gingib]

Any recommendations for a decent stock? Ready to slowly put $$$ in and learn

Very vague.

I put in $200 in RH today and just playing around to learn.

Sprint has tanked recently

[Unicorn27]

Thanks and sorry for the lack of information. Just recently I’ve decided to learn more about the stock market and have started playing the game. Don’t mind gambling on a few long shots at all.

[afishinman14]

Thanks and sorry for the lack of information. Just recently I’ve decided to learn more about the stock market and have started playing the game. Don’t mind gambling on a few long shots at all.

Like everyone says. Do some research. I'm in that phase right now. Reading several books. And guess what they say too? So your own research haha. Don't just blindly follow and not know why you're investing in something. Now these books do a good job on education people on HOW to research. What do look for. I'm learning a lot. So that's my 2 cents. Read a few books.


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[ryanc02]

If you want a potential to make lots with a penny stock check out ALKM.


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[MagicBlade]

Not sure I understand why all of a sudden you want to buy stock.
Day trade, long term investment or dividend?
Maybe you should take your money and go to Las Vegas or Oklahoma and gamble!

[BigL]

Yes I read that. But still why do all these other companies charge then? Will all trades be eventually free?

Makes no sense to go pay per trade when you can do it free and its fully insured also.

Depends what you are looking for. Robinhood has no trade quality or speed guarantee. For example the big names like Schwab, Fidelity, TDAmeritrade, E-Trade, etc. all have trade quality and execution guarantees. They even list their average time for trades. Most are in the .12-.17s range. I can't find where Robinhood lists their execution quality or speeds. So if you're only trading a few shares. Say going to buy 5 shares of Apple, then something like Robinhood makes sense. If you're going to buy 1000 shares of Apple having trades quickly execute at the price you've sent the order in, Robinhood probably isn't the best for you.

Also Robinhood is limited in functionality. I'll pay a price to get real time level 2 data, real time streaming charts, real time chart analysis, option trading, and millisecond trade executions.

Robinhood makes money on your cash they hold in cash accounts. Think about how the fundamental way banks make money. They use your money to make loans. In this case Robinhood is able to provide margin loans in their Robinhood Gold accounts because of the cash deposits they have on hand. The 3.5% they make on margin loans is more than they would make charging 4.95-9.95/trade so it's worth it for them to say free trades, deposit your money here. But they need to be able to pass the stress test and show that they have the assets on hand to cover any losses that their clients make. Back in 2012-2013, I heard the Schwab CEO say that if the interest rate would return to a normal rater around 2%, they would make 4x Earnings Per Share without having to do anything. Back then SCHW was making I think around $.7/share. He was projecting that doing nothing but the fed raising rates would change their EPS to almost $3/share. That's why assets under management is such a big metric for these companies.

They aren't the first to talk commission-free trading. I know back around 2005 there was a lot of rumor of Fidelity being the first to go to a $0 commission trade. The thought was because of Fidelity's mutual fund business, it had a large datacenter of mostly idle servers before 4:30ET. Using those servers for their daily trades during market hours would mean that the infrastructure needed to trade during market hours was paid for by the mutual fund business. Again on small trade sizes commissions matter a lot. On larger trades a small commission for the things I listed above is acceptable. They found price matters but not that much. That's why you see commissions down to 4.95 at Schwab and Fidelity and 6.95 at most others. That's a small price to pay to give me execution quality and speed.

[BigL]

Like everyone says. Do some research. I'm in that phase right now. Reading several books. And guess what they say too? So your own research haha. Don't just blindly follow and not know why you're investing in something. Now these books do a good job on education people on HOW to research. What do look for. I'm learning a lot. So that's my 2 cents. Read a few books.


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How to Make Money in Stocks by O'Neil and High Probability Trading by Link are a couple to add to your list.

[mzurovec]

Bumping this

[Balcones_Walker]

VTSMX. To be a straight up party pooper, look back at old threads of the gamblers where they've bought things on a certain date and compare the price then to the price now. Some have made money, some haven't... and you'll hear a whole lot more coming from the ones who have. Take the Vegas money to Vegas, and put the actual investments in a boring index based strategy and forget it.

[gingib]

ALot of stocks been dropping in last month...Good time to buy

[bwool]

Some of these drilling companies are awful tempting as low as they are right now.( rig, sdrl, ensco)
Anyone see anything else thats exciting?

[bwool]

Nothing?

[Chuey]

ttt

[captainsling]

Some of these drilling companies are awful tempting as low as they are right now.( rig, sdrl, ensco)
Anyone see anything else thats exciting?

sdrl is up 27% today.