Stock Trading

[mmonroe]

Does anyone else here trade in stocks? I'm thinking of starting up an Oklahoma portfolio.

[mmonroe]

43 views and no replies...

[Bellaboo]

I do, have been 35 for years.

[mmonroe]

Well to say i'm fairly new would be an understatement. I'm thinking of opening an eTrade account and grabbing a hold of some OK based company stock to sit on for awhile. Seems like a lot of our local companies are trading at some low prices and the 52 week highs look good, some even double. As the saying goes, invest in what you know, and since some of the greatest stocks belong to some of our own companies here in Oklahoma and it's easier to follow local then national, it seems like a natural fit.

Any advice on the eTrade or should I hold out for some time.

[Bellaboo]

Well to say i'm fairly new would be an understatement. I'm thinking of opening an eTrade account and grabbing a hold of some OK based company stock to sit on for awhile. Seems like a lot of our local companies are trading at some low prices and the 52 week highs look good, some even double. As the saying goes, invest in what you know, and since some of the greatest stocks belong to some of our own companies here in Oklahoma and it's easier to follow local then national, it seems like a natural fit.

Any advice on the eTrade or should I hold out for some time.

I use Scottrade, 7 bucks a trade.

As for stocks, I trade 3X ETF's and own some MREITs...mortgage real estate investment trusts. Some of the mreits are 19% dividend payouts anually. Fed law requires that 90% of profit has to be paid out as dividends....

But remember, the stock market is legalized gambling, almost.

[Questor]

I would be apprehensive about buying up too many stocks that are either in the same industry (e.g. energy) or in the same geographic area. Me personally I would rather be more diversified and maybe have a few Oklahoma stocks in a larger portfolio as opposed to an Oklahoma portfolio. Just my personal risk level aversion.

[mugofbeer]

I am in the business and I agree with Questor. Don't focus strictly on OK or one industry. Diversification is very wise, especially if you are not thoroughly educated in the stock trading business.

[mmonroe]

My closest education is college courses.

I was looking at following SD, CHK, DVN, and OKE

Here is what i've noticed and I haven't put any real money into it yet, i'm actually playing around with a few simulators that follow the market. But CHK and DVN follow pretty close to the same rise and falls, be it the same sector but trading at totally different prices. SD shares linger in the high 6.00 and have had a 52 week high of 13 while CHK is around 22 and DVN 67 but the 52 week high is around 90. SD has moved to following more in oil than ngas and DVN has gotten rid of a lot of their oil stakes but not all and focus more on the ngas than oil. CHK i'm still reading on and OKE was to be added to stir my pot so to speak. I wasn't too sure about SONC but their stock is again lower than average but the 52 week high is almost double the current stock price.


I suppose in my first post I should have stated that I wanted to add a section of OKlahoma to my current portfolio than an OK portfolio all its own. I'm still fairly new at this and appreciate the comments. I'll be putting real money into this at the end of the year if not sooner.

How do you guys that trade feel about our local banks, mainly BOK and BancFirst....?

[mmonroe]

I use Scottrade, 7 bucks a trade.

How do you feel about Scottrade, is it just the trade cost of why you picked them?

[Bunty]

Does anyone else here trade in stocks? I'm thinking of starting up an Oklahoma portfolio.

I would suggest making up the portfolio based on fast growing companies, like chain stores and restaurants, coming to Oklahoma and Oklahoma City metro area for the first time recently, for instance, Whole Foods. Also monitor for companies that are setting up in Oklahoma's faster growing towns.

[Bellaboo]

How do you feel about Scottrade, is it just the trade cost of why you picked them?

I'm sure they are all pretty much competitive....they offer way more than I need or use.

[Double Edge]

For self directed trading I've been using Schwab for 20+ years. $8.95 for stock trades. Lots of tools if you want them and if you need some help by talking to someone (not investing advice per se) they have always been there for me.

[Roadhawg]

I use ING and so far happy with them. I don't do a whole lot with them as most of my stock is with my 401K.

[ou48A]

There is not enough difference in the major on line sites to really worry much about. Pick one and go with it.

Your decisions that you make on the stocks that you buy and sell are far more important.

[mmonroe]

There is not enough difference in the major on line sites to really worry much about. Pick one and go with it.

Your decisions that you make on the stocks that you buy and sell are far more important.

True, but i'd also like to know that the place at which i'm buying and selling at is stable enough to protect my financial investments. I've never gone into anything willy nilly without researching it first and gathering a few opinions.

I noticed Scottrade has some local offices here and that is a big selling point for me. Nice pick bellaboo

[Double Edge]

As does Schwab. We opened our first account with them walking in at their office when it was downtown.

[Bellaboo]

True, but i'd also like to know that the place at which i'm buying and selling at is stable enough to protect my financial investments. I've never gone into anything willy nilly without researching it first and gathering a few opinions.

I noticed Scottrade has some local offices here and that is a big selling point for me. Nice pick bellaboo

Thay are over by Penn Sq mall and I believe also in Edmond.

They will also pay a small amount of interest on average daily funds in your cash account (non invested money). Also, your funds are insured up to 20 million dollars.

[Maynard]

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Also, your funds are insured up to 20 million dollars.

Actually, SIPC covers up to $500,000 per customer -- max of $100,000 in cash.

[Bellaboo]

Actually, SIPC covers up to $500,000 per customer -- max of $100,000 in cash.

Don't know who SIPC is, but I called and that's what they told me........20 million.

[Maynard]

Don't know who SIPC is, but I called and that's what they told me........20 million.

Securities Investor Protection Corp

[Vito]

Most brokerages have private insurance that supplements the SIPC coverage. That's probably the difference between the SIPC limits ($500,000 with a max now of $250,000 cash) and the $20 million quoted coverage. Of course, the private insurance is only as solid as the company providing the coverage.

For the OP -- I've used Scottrade and I like it. I just hope that you ease into your stock picking and don't take any great risks while you're learning. I can assure you, regardless of how smart you are, the market is smarter -- or at least more cunning. I advise you to read a variety of books and opinions. Read about the various forms of the efficient market hypothesis; about various theories that say no one can really beat the market so you should just buy indexes and settle for market return; about those who say that proper asset allocation, balancing volatility (risk) and return, matters much more than picking individual stocks; about people like Warren Buffett and others who say that it is possible -- though very difficult -- to beat the market with fundamental analysis and patience; etc. Be sure you know how to read financial statements. And never get overconfident. Happy investing.

[Maynard]

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($500,000 with a max now of $250,000 cash)

I stand corrected [damn Dodd-Frank act].

Something to think about as far as 'federal insurance' is concerned (SIPC, FDIC, NCUA, et al):

"Deposit Insurance"

But even with the backing of the Fed, fractional reserve banking proved shaky, and so the New Deal, in 1933, added the lie of "bank deposit insurance," using the benign word "insurance" to mask an arrant hoax. When the savings and loan system went down the tubes in the late 1980s, the "deposit insurance" of the federal FSLIC [Federal Savings and Loan Insurance Corporation] was unmasked as sheer fraud. The "insurance" was simply the smoke-and-mirrors term for the unbacked name of the federal government. The poor taxpayers finally bailed out the S&Ls, but now we are left with the formerly sainted FDIC [Federal Deposit Insurance Corporation], for commercial banks, which is now increasingly seen to be shaky, since the FDIC itself has less than one percent of the huge number of deposits it "insures."

The very idea of "deposit insurance" is a swindle; how does one insure an institution (fractional reserve banking) that is inherently insolvent, and which will fall apart whenever the public finally understands the swindle? Suppose that, tomorrow, the American public suddenly became aware of the banking swindle, and went to the banks tomorrow morning, and, in unison, demanded cash. What would happen? The banks would be instantly insolvent, since they could only muster 10 percent of the cash they owe their befuddled customers. Neither would the enormous tax increase needed to bail everyone out be at all palatable. No: the only thing the Fed could do, and this would be in their power, would be to print enough money to pay off all the bank depositors. Unfortunately, in the present state of the banking system, the result would be an immediate plunge into the horrors of hyperinflation.

Let us suppose that total insured bank deposits are $1,600 billion. Technically, in the case of a run on the banks, the Fed could exercise emergency powers and print $1,600 billion in cash to give to the FDIC to pay off the bank depositors. The problem is that, emboldened at this massive bailout, the depositors would promptly redeposit the new $1,600 billion into the banks, increasing the total bank reserves by $1,600 billion, thus permitting an immediate expansion of the money supply by the banks by tenfold, increasing the total stock of bank money by $16 trillion. Runaway inflation and total destruction of the currency would quickly follow.

[MrBigglesworth]

Scottrade is great if you want to invest in stuff that doesnt pay dividends.

They are not so great if you want to DRIP(reinvest) as there is no support for it.

For my stuff that I have that pays dividends I have a Fidelity account, it's only a buck more in commission and they allow you to DRIP everything for free.

I love investing in Closed End Funds because they pay monthly.

[mmonroe]

This is great! I'm taking everything into consideration.

Besides classes right now, I have been reading everything I can. Stuck on motley fool right now. My pretend money in my simulator through investopedia has gained more than I thought It would have. Decided to sell off half my shares of SONC last night and decided to buy some small shares of some companies I've been reading about. Haven't checked them all day since my phone died, but i'm home now and thats my next stop after okctalk.


On another note, for those who have used Schwab, Fidelity, and Scottrade, what are your dislikes? Anything I should be aware before my final pick?

[Maynard]

Scottrade is great if you want to invest in stuff that doesnt pay dividends.

They are not so great if you want to DRIP(reinvest) as there is no support for it.

For my stuff that I have that pays dividends I have a Fidelity account, it's only a buck more in commission and they allow you to DRIP everything for free.

I love investing in Closed End Funds because they pay monthly.

CEFs are great because you can arb[itrage] 'twixt the NAV and trading price, and they're great for dividend capture schemes. Caveat emptor; many CEFs don't have near the same volume/liquidity as many of their ETF cousins.

MM: One thing to consider when choosing where to 'park' your money is whether you're going to be pulling any funds out on a regular basis (or at all). With Scottrade, you've got to make a phone call and request a check. They're great about depositing money (sending them money online), but I found them a hassle (time-wise) to take some out. With Fidelity, you can set 'automatic' fund deposits and withdrawls. And as Mr. B cited, if you plan on 'buy and hold', Fidelity will reinvest distributions (free), if you so elect. Another perk with Fidelity is you can trade quite a few ETFs (iShares) without paying a commission fee (saves you $7.95/trade). I think Schwab offers similar commission-free trading of their ETFs -- be careful of fund size and liquidity, not all ETFs are created (or trade) equally. All of the choices presented in this thread are 'fine' -- some are better than others. My pick is Fidelity. None of the firms listed here (including Vanguard, though it wasn't mentioned) will 'hold your hand'. Having used ST, E*Trade, Vanguard, and Fidelity -- my business is with with Fidelity. You do get more for your money!

Also, not sure with how much you were planning on starting your account -- there are two types of accounts, cash and margin. Since you said you're new, I'd suggest you not trade/invest 'on the margin'. And, if you open a cash account, make sure you're aware and understand 'settlement periods' (whomever you choose will explain this further).

You might check out the link below, too. Hopfully this helps!

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