Stocks

[Centro]

I bought. It will hit $3 soon.

Don't mark my word though.

I sold today at $2.20, very undecided now...

[springles]

It was just bought out so I'm surprised it hasn't gone up yet. But yes I do expect it to

Im not a day trader, just an occasional trader and i only buy what I know so I am really just asking this out of curiosity, but do you buy things on this kind of flimsy prediction.  I dont mean flimsy to sound so negative but the fact that a company is bought out does not necessarily mean the stock will go up.  Ive seen many times where the opposite happens.  So is there more of a reason to your trades or is it similar to this?

[thatsfine]

Is E-trade a good company to start trading stocks, or there are better websites to start with ?

[Shmulie]

Is E-trade a good company to start trading stocks, or there are better websites to start with ?

Robinhood has no trade fees but you can only trade from your phone.

[thatsfine]

Robinhood has no trade fees but you can only trade from your phone.

Is it much of a difference whom I use for a broker? Why is that,  that I can  only  trade from my phone?

[Adam101]

Is it much of a difference whom I use for a broker? Why is that,  that I can  only  trade from my phone?

The biggest difference with Robin Hood and everyone else is that once you trade you can no longer use your money for the next 3 days. So once yourself you can reinvest only three full days later

[thatsfine]

The biggest difference with Robin Hood and everyone else is that once you trade you can no longer use your money for the next 3 days. So once yourself you can reinvest only three full days later

Thanks,  I was wondering how they make money but you already answered that,  they are making use of  my money for 3 days.  am I right?

[Adam101]

Thanks,  I was wondering how they make money but you already answered that,  they are making use of  my money for 3 days (to do whatever they want)  am I right?

Don't know.

[thatsfine]

Don't know.

If Robin Hood is out what should be my next best option?

[Adam101]

If Robin Hood is out what should be my next best option?

For stock trading? I'd say Fidelity has a good rep. Options go with Optionshouse.

[thatsfine]

For stock trading? I'd say Fidelity has a good rep. Options go with Optionshouse.

Thanks,  what does options mean? ( I know the definition of options)  sorry  I'm new.

[Shmulie]

The biggest difference with Robin Hood and everyone else is that once you trade you can no longer use your money for the next 3 days. So once yourself you can reinvest only three full days later

Most brokerages have a 3 day hold after selling not just robinhood.

[Centro]

The biggest difference with Robin Hood and everyone else is that once you trade you can no longer use your money for the next 3 days. So once yourself you can reinvest only three full days later

That's called Free Ride, has nothing with Robinhood, it's a law.

[ExGingi]

Thanks,  I was wondering how they make money but you already answered that,  they are making use of  my money for 3 days.  am I right?

I doubt it. 3 days is what it takes for a trade to settle.

My guess is that they make something on the spread (difference between buy and sell prices).

[Adam101]

That's called Free Ride, has nothing with Robinhood, it's a law.

So why is it that pretty much every other trading platform has the money instantly when you sell. I don't think that's what margin is

[thatsfine]

That's called Free Ride, has nothing with Robinhood, it's a law.

Based on what you are saying, should I stay with robin hood or not ? what should I look for ?

[Adam101]

Based on what you are saying, should I stay with robin hood or not ? what should I look for ?

Depends on how you trade and what your strategies are.

[Centro]

So why is it that pretty much every other trading platform has the money instantly when you sell. I don't think that's what margin is

https://en.m.wikipedia.org/wiki/Free_riding 

[Adam101]

https://en.m.wikipedia.org/wiki/Free_riding 

Great. Thanks.

[ExGingi]

Thanks,  what does options mean? ( I know the definition of options)  sorry  I'm new.

Options are a contract that gives one side the right to buy (call) or sell (put) an underlying security (stock) at a predetermined price by a predetermined date. (And by extension the counterparty has the obligation to sell or buy based on those terms).

A stock option is a contract for 100 of the underlying stock.

So for example if I buy a $95 AAPL May 2016 option for $0.20, that means I would pay $20 (plus commissions and fees) for the right to buy 100 shares of AAPL for $95 anytime between now and the expiration date (third Friday of the month).  This might be profitable if AAPL goes above $95.20 between now and the expiration date. If AAPL won't hit $95 by the expiration date, it will just expire worthless. Further extending the example, if AAPL gets to $100 that means the option is "in the money" and has an embedded $5 profit. So rather than exercising the contract by shelling out $9,500 to buy 100 shares of AAPL, you just sell the option and pocket a $480 profit (less commissions and fees).

There's a lot more to learn about options, but take this as options 101