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How do I build stock profit as a new investor?

No brokers will help unless my money is in the 1000,'s is there a way to access the market without a broker? And why does it look like I'm gonna spend more on fees for a possible $10 profit?
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Ryan’s Answer

It's great that you're looking to become an investor, but there are a few things you might want to keep in mind before you do so.


The first is the difference between an investor and a trader. An investor is looking for undervalued companies and puts money in there for the long-haul. A trader is looking for discrepancies in the market that lead to a stock price not lining up with where they think it should be, and are much more concerned with returns from trades within a single week, day, or hour.


All that said, in many cases what you'll probably be looking for are some long-term investments that allow you to leave your money in and either see an increase in value, or reap the rewards of dividends, money the company pays out every quarter to its investors. Looking for short wins is enticing, but it's also very easy to lose lots of money, even if you do win, simply from broker fees. Beating the market by picking individual stocks is generally a losing proposition as an amateur trader without sophisticated tools and a significant time investment.


Many of the discount brokers out there charge $5-$10 per trade, so unless you're moving large ($5k-$10k) amounts, you're correct that the fees will eat up any profits that you might see. Instead of individual stocks, you can look at putting your money into ETFs (Exchange traded funds) or other diversified investments, again for long term investments. My advice would be to read up as much as you can on amateur investing basics from books, personal finance and investment blogs, and talking to investors. From there, you'll be much more informed to decide on where to put your money.

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