Buying your first stock
I remember buying my first stock, McDonalds, in 1994. I think I paid about $8 dollars for it, bought about 100 shares, and sold within the year for just over $10. I was using E*Trade to buy stocks then (which was a fairly new company) and paid a large commission when I both bought and sold my shares. Being able to trade shares on-line was new then, most people relied on brokers who they called on the phone to buy and sell stocks on their behalf. I thought I was pretty tech savvy, so I happily opened an on-line account to make my first trade. My parents thought I was nuts, trusting the internet. I sold those shares within a year because I was moving overseas and did not think I would have access to it. After that purchase, I did not buy stocks again until almost 20 years later. I married and family commitments and life just got in the way. Now McDonald’s trades at over $230 a share, so I lost a chance to have made $22,000 over those 26 years. I should have just left the stock until I returned to the US and simply let it ride. Better still, I should have bought a lot more than just $800 worth of McDonalds. I was single and had limited expenses. Instead I spent money on a lot of things I can’t even remember now. If I had invested $8000 and kept my shares, I would have had $220,000.
To buy a stock today, you simply have to open a brokerage account. Your best bet will probably be your current bank, most of which will have a brokerage arm. Ask them to help you. Alternatively, go with one of the big, name brand firms like Charles Schwab, Interactive Brokers, or TDAmeritrade. Takes a few minutes to open an account on-line. You can fund it with an on-line transfer or even a send in a check. Most charge little or no fees for stock trades. (Options still carry commissions) These established brokerages have great research and training tools to help you learn how to trade. Avoid the newer apps like Robinhood or other slick new trading platforms. Their customer service is weak (if you have a problem and you almost always will) and their training materials are in their infancy.
Once you have the account, buy yourself your equivalent to the McDonalds I bought in 1995, but hang onto it. That is the crux of investing. Select a sound company, with good growth prospects and even if you only can afford to buy a little, do it and hang on. It will take time but if you do it when you are young, and let the years do the work, you will not have the regrets I have 25 years later.
Market Today: Again another soft day. Opened up and then sold off, as we are all still waiting on Washington to do something. I sold calls on positions I own and bought them back before the end of the day, make some nice money. Did not sell puts, too much chance of a further decline. Heard about a new dividend stock I am researching to maybe add to my IRA account. Going to buy some more Chevron (CVX) or Exxon (XOM) if they fall again. Good dividends.