Under $5 Stocks To Buy? Advice?

[COOLDAD1]

First thing is ditch Ameritrade and those fees and download the Robinhood app on your phone. You will save lots of money in fees as their trades are 100% FREE.

This

[Axe Man]

If you want to daytrade check out Ustocktrade. $1 buy and sell fee and no daytrade limit.

[RiverRat1]

I understand somewhat of what you're saying.
I guess I would love to learn more about short term - day trading type of operations.
Anyone have input or outlets for beginner type of information?

Follow good traders on Twitter. Figure out what niche you want to trade. That's the hard part. Don't try and trade different ways. Either be a day trader, a swing trader or a long term investor.

What makes a $5 stock better than a $55, $555 or $5,555 stock?

Lower priced stocks move bigger percentages easier. I guess because people are not smart. A $20 stock up $1 is 5% A $4 stock up $1 is up 20/25% (depending on how you look at it).

[Burnadell]

I'm curious as to why you are looking at stocks for under $5/share? You can't compare a stock to see which one is expensive vs the next by saying well this one trades for $7/share and this one trades for $4/share, the $7/share must be more expensive. Stocks aren't priced that way to be able to compare them apples to apples. They price off a multiples of future earnings. You can have a $1,000 stock that is technically "cheaper" than a $5 stock.

Exactly . If one does not understand how to analyze stocks and their companies' fundamentals, and they buy stocks without sound advice from a knowledgeable person, they are simply gambling on chance.

First thing is ditch Ameritrade and those fees and download the Robinhood app on your phone. You will save lots of money in fees as their trades are 100% FREE.

I know nothing about Robinhood, but how can a company survive without charging fees? How do they earn their income?

[EliteDriver]

tagged...

[brunner]

If you want to daytrade check out Ustocktrade. $1 buy and sell fee and no daytrade limit.

Do they have a real time market chart to watch throughout the day?


I'm glad I opened this thread - I am very green to trading. I want as much info and education as possible


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[Axe Man]

I have an Ameritrade account with like $100 on a long hold stock. I use ThinkOrSwim (comes with Ameritrade account) to follow level 2 and buys and sells on stocks I'm swing or day trading. I do most of my trades on Ustocktrade. I also have used RH and it is pretty good, but I lost some money when it glitched a couple of times so I left it.

[solocam_aggie]

Im in the same boat brunner. I've been curious about trading and trying to learn as much as possible. Wish there was some sort of beginners course you could take that laid it out.

[DosToros]

I also know nothing about robinhood, but most trading platforms are very reasonable, less than 10 dollars a trade is so cheap and you will be with a giant company with a lot of support both customer service and financial research. Also I would forget about day trading. I would recommend having a well balanced portfolio but I am also partial to MLP's(google it). I like dividend paying stocks.

[Sunnylab]

I know nothing about Robinhood, but how can a company survive without charging fees? How do they earn their income?

They make money off of interest in CASH accounts. I have some cash in my account where I sold some stock last year and just haven't picked anything up yet. So they are making money off my cash.

[EASTEXASARCHER]

Its all about % increase / decrease, not dollar increase / decrease!

If you want to go to the casino and put it all on black, then SDRL might not be a bad one to check out. I did pretty well with that stock when oil prices started to fall a few years ago. They filed for ch. 11 last fall, but are expected to overcome those setbacks and surge in the coming year.

[BigL]

I know nothing about Robinhood, but how can a company survive without charging fees? How do they earn their income?

I'm guessing they get paid for orderflow and don't guarantee best price. They probably also make money on margin accounts/loans.

[Sunnylab]

I'm guessing they get paid for orderflow and don't guarantee best price. They probably also make money on margin accounts/loans.

https://support.robinhood.com/hc/en-us/articles/202853769-How-Robinhood-Makes-Money

[JeffJ]

Follow good traders on Twitter. Figure out what niche you want to trade. That's the hard part. Don't try and trade different ways. Either be a day trader, a swing trader or a long term investor.



Lower priced stocks move bigger percentages easier. I guess because people are not smart. A $20 stock up $1 is 5% A $4 stock up $1 is up 20/25% (depending on how you look at it).

That's not what I was asking. What makes a $5 better than a $555...zero is the answer.

[asttbe]

That's not what I was asking. What makes a $5 better than a $555...zero is the answer.

Nothing makes it "better" but if you have $555 to invest you have a better opportunity to diversify the stock you are in. You can buy 111 different $5 stocks or you can put it all in one share. Sometimes the one is a way better place to put it though.