Online Stock trading--and those little old ladies.

[julie.leeds]

I don't know a thing about the stock market...

but, does anyone remember there was a group of little old ladies a few years ago supposedly made it pretty big with the stock market. They just had a group of a few of them and they put "some" money in and just picked out some stocks and a lot of the stocks they picked did quite well.

You see, I am a gambler at heart. I wouldn't want to risk more than I can afford to lose anyway, which isn't much. I would love to get involved with a stock trading group. Does anyone know how you get into something like this that isn't a con, and that I wouldn't need hundreds to get in.

How do these groups work? Who picks the stocks? I guess its not "much" different to a lottery group.

I just thought I would ask on here to see if anyone knew anything about it?


I am not talking about doing this for a sound investment, but more for fun and hopes of earning some money... I blow money on lottery tickets and casinos from time to time. I guess I am interested in this as an occasional form of entertainment.

[thecountess]

does anyone remember there was a group of little old ladies a few years ago supposedly made it pretty big with the stock market. They just had a group of a few of them and they put "some" money in and just picked out some stocks and a lot of the stocks they picked did quite well.

If I'm thinking of the same ones as you they are called The Beardstown Ladies

http://en.wikipedia.org/wiki/Beardstown_Ladies

http://www.beardstownil.org/ladies.htm

[Woofy]

I did recall reading an article about them overstating/overexaggerating their stock market gains though... Not sure how true that is...

[julie.leeds]

Do you have any idea how to set up one of these groups? How much it usually costs to buy in etc?

[ashedfc]

You reduce your risk, but you also loose your independence in the selection of -
What to buy/sell?
When to buy/sell?
If a position is loosing money, then does your group buys more to average down, or sell all to cut your future losses.
Its hard to reach a conclusion in a group.
Individually, you could take a decision & execute almost instantly.

[Alberta_Girl]

Your costs will depend on which brokerage you use, how much money you keep in your account and your trading frequency.

[ashedfc]

Some are as less as 1 cents per share (with $1 minimum) per trade for stocks & $1.50 (all inclusive) per contract for Canadian options (calls & puts) & $0.70 per contract for US options.

[julie.leeds]

Hmmmm....I think I will just go blow $100 at the casino *lol* at least I will know how and why I lost it!

[couponclippingcindy]

I remember a few years back on Oprah a group of Moms (all friends) did this and did well.
I *think* they each invested like $200 (maybe 1/4-ly) and bought stocks of companies they used regularly :ie: P&G, Clorox etc. I'm pretty sure they got really good returns and just kept reinvesting their earnings.
Sounds interesting though.

[mulock]

The time to get in and guarantee a huge profit are ending. The best time was January last year when bank stocks took a huge tumble. I bought into BMO stock at $26.xx/share....today it just went above $61.xx/share There is still about 15% more room for the bank stocks to recover from...but that will take 3-4 years to see.

[ashedfc]

Blowing $100 in Casino is not investing - Its gambling.
Investing requires patience, timing, in-depth analysis (as to why it should go up or go down), & finally the guts to pull the trigger.

If you feel something is expected to go down, then short the stock (you will make money)
There are investors who shorted Citigroup (C-NYSE) at $52 in 2007, & even today its $4, so for every $52 investment, you would have made $48 profit (less margin & trading costs). This way, you make money in a falling market.

[julie.leeds]

Some people like to win the game, some just like playing in the game. I am the type that just likes to play the game win or lose. BUT I wouldn't risk more than I could afford to lose anyway, so I personally would look at myself investing like gambling. I don't smoke so instead of wasting $50 a carton...or however much it is, I would try investing out of entertainment.

[ashedfc]

I respect your opinion.
There are reports, where statistically over 90% of online traders loose money. Its an addiction for them. They just have to buy or sell (they are just itching to trade).
Some-times doing nothing is the best option (if you are not sure in your analysis).

[Tylers]

I wouldn't bother with a trading account for only $200.00. There are typically minimum trading fees. If you were to do as the person about did with the BMO stock and purchased 7 stocks at $25 and paid $20 in trading commissions (not unrealistic) you'd have to see that stock go up to $31.42/share just to break even. You can purchase mutual funds for $500 with an online trading account and pay no commission, but just as you'd do with a stock - do some research.

[ashedfc]

Go to interactive brokers & open an account. They charge only $1 minimum (1 cents per chare for Canadian stocks & 0.5 cents per share US stocks). Your $200 has to become $202 ($1 to sell & $1 to buy) & you are breakeven.

Or you could buy a mutual fund (because 90% of traders loose money).