Your PRIMARY focus should be learning more about profitable stock trading.
With only a $500 account, not to insult you, the numbers don't work very well. It's going to cost you $4.95 to enter the trade, and $4.95 to exit the trade. So right from the start, you are down 2%. It is the compounding percentages that are going to help or hurt you.
So, since I haven't yet told you anything that you want to hear. Answering your original question, you need to sit and wait for one really GOOD trade, and practice trading on paper until you learn to recognize WHAT a good trade looks like. William O'Neil has a couple of good books with lots of graphs and pictures.
Even a professional with many years of solid experience would have a difficult time trying to succeed with only a $500 account.
maybe if you bought 4 shares of BRK-B. It's at 109.13 right now. The company run by Warren Buffet. but you would want to wait until the price rises to about $120 dollars a share.
Put $500 into Inovio Pharmaceuticals, an early stage biotechnology company. Take some profits as it rises so you can diversify into other stocks. This is high risk/high reward.
Or
Find a company that reports solid earnings but whose stock price gets hammered because it fell below expectations. Buy the dip and then sell for a 20-25% profit. Do this every quarter since you need time to research the stocks you have in mind. This is not as risky as putting all your eggs in one basket.
You can't succed in binary trading without a strategy, a good method to follow and some kind of software support. They program I use is called "Autobinary signals". It helps finding loopholes for guaranteed returns. It's very easy to use and I'm earning good money. You find all the details on this site: http://tradingsignal.toptips.org
I'm making big money with binary option, I use this software ( http://forexsignal.kyma.info ) My software delivers signals only when the five indicators (bp trend filter, market deviation, price pattern, rel. price impulse, stat. price range) are aligned together and we have an extremely high confidence rate, it must then co-exist with my proven secret strategy before a trade be detected… as a result, we get a guaranteed Highly-Accurate ’80-100%’ Signal.
I am 19 years old and really would like to learn a lot more about trading. I have read plenty of book and have done some trading on my dad's account as well. Well my question today is that I have opened up my own trading account. I will be starting off with $500 dollars and that is why I picked tradeking as my discount brokerage site. Their commission fee is only 4.95 per trade. So can anyone give me some ideas on what kind of trades I should be doing? Penny stocks? Blue chip companies? I am a student in college and on my free times when I am not in class or sometimes even in class I am usually on Marketwatch trading game. How would you guys start investing with only $500 dollars to start out with?
