Trading Options Etrade

Best advice for Newbie on eTrade?

I want to give e*trade a try. Invest in something small, nothing too crazy. I know a little about the market, not a whole bunch. What are the best options to choose on the site when buying any particular stock? Thanks

You are thinking about this all wrong…

When you invest, you need to research the company and determine where it might be in 5, 10, 20 years based on its track record. Do not buy companies that are not profitable or have tons of debt. Look for stocks that also pay dividends. Also make sure you understand the business they are in and products they sell..

For instance, Monsanto sells seeds to farmers. A few easy to understand business with good growth prospects 20 yrs from now because population keeps rising and people have to eat. Thus demand for crops globally will increase. And farmers who grow those crops need seeds. Thus buying Monsanto is a good bet for the future.
Buying stock in Palm or RIM might not be a good idea. They make smart phones and that is a hot market right now. But who’s to say that some smart kid in 5 yrs doesn’t come out with a better device and put Palm and RIM into the toilet?

Go with Simple, easy to understand, boring businesses that generate profits and have global demand for their goods.

One last thing. If you buy a company, you should be able to say to yourself, “I don’t care if the stock market closes for the next 10 years after you made a purchase.” You should feel confident in your buying of that company stock that it’ll be around 10yrs later.

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