New Investor Scenario

Discussion in 'Professional Trading' started by Jebus, Jan 6, 2006.

  1. Jebus



    Im looking into investing for the first time and heres my situation currently:

    +~ $4k cash
    +Still in high school, interested in finances and just trying to start out early
    +No experience, been reading articles and putting together my own "cheat sheet" of terms and such over the past few weeks just to get a base going.

    GOALS :

    Year One - Become more knowledgable, at least break even any profits are a bonus

    Year Two - Same as year one except maybe a tiny more profit. I will be done with high school and my goal is to have $15k banked because of work

    +Continue to do my research and read up on things.
    +Decide on brokerage
    +Once brokerage is decided my money breakdown will look similar to this
    ~$500 just in the bank for everyday stuff
    ~$1000 bonds/CD's(?)
    ~$2500 stocks (further breakdown to be determined)

    + Any books you all can recommend?

    +Is IB all its cracked up to be and is it too complex for novices?

    +On the IB website it says the activity fee minimum is $3 (Age 25 or under), since im not 18 yet i dont think its legal for me to open an account in my name so i would have to have to be trading in an account created by a parent, but then i would have to be doing $10 a month in trades or making the difference which is a fairly high amount of money % wise when you are working with $2500

    $10x$12 = $120
    $120 = 4.8% of $2500

    Any ideas on this?

    (phew...sorry for that long question..)

    +Any other fees to look out for? I have looked over all of them so far and havent found anything.

    +Should i wait until i have more money before doing anything and just let my money sit in a CD for a little while?

    +Any other advice?

    Thanks :D