Sunday, June 29, 2008

Build a Low Risk Stock Portfolio with Zero Costs?

Avoid the Trading Pits - Invest the Easy Way!
Avoid the Trading Pits - Invest the Easy Way!

Do you want to invest but scared of picking the wrong stocks? Are you intimidated by the ups and downs of the stock market? Here are a few tips on how to buy 500 of the best stocks on Wall Street at Zero Cost to you. Best of all, you only have to do it once a month.

Calculate how much you can afford to invest without struggling each month with normal expenses. Try to set aside this amount each month if possible.

Setup an account at Zecco Trading. This requires 10 minutes of basic paperwork such as: name, address, etc.

Fund the newly created account with the amount you would like to invest each month. It can be $100 or more, but Zecco requires a minimum of $2500 to trade for free.*

* Until that balance is met, trades are just $4.50.

Lookup an investment called S&P 500 Spyders (pronounced Spiders).

This is an Exchange Traded Fund (ETF) that tracks the S&P 500 index, but can be traded like a stock. The S&P 500 is a broad collection of 500 stocks that are the leaders of the US economy.

Spyders trade under the symbol SPY.

To determine how many shares you can purchase with your deposit, follow this simple equation:

Available Cash / SPY Price = # of shares you can purchase.

Example:

SPY Price on Jan 13, 2008 was $140.26. You deposited $2500.00 in your account. How many shares can I buy?

$2500.00 / $140.26 = 17.82 --> You can purchase 17 shares (ignore decimals)

If this is your first time using an online broker, it would be advisable to use the Help Sections or Online Tutorials available.

Go to the trading menu, enter the amount of shares you wish to purchase (17 in this case), and click buy.

Congratulations! You just became an online investor.

For more information please view WWW.QUICK-INVESTMENT.COM


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