Lux Investing
Is investing in Home Depo a wise choice for a beginner?
Only have $500 to start with!!!
Public Comments
- Check into Darden Restraunts as a whole. (red lobster,olive garden, smokey bones, bahama breeze) Stock has split 3 times in the last 2yrs.
- HD is a great place to start, being part of the Dow Industrials average means the corporation is stable. But with such a small amount to invest you are trying to gain a lot of value in a little time. Owens Corning is great. www.pinksheets.com is information about the Over The Counter market, small companies and small prices. Look there and find some companies you know. GOOD LUCK
- Hi, Never start with this low an amount. The fees would kill any profit you would make. My advice is that a person should not invest less than $1000 in a stock. Just do the math : If you pay $8 per trade. Then you pay $8 to buy and $8 to sell. So you are spending $16 anyway. Let us say you invest $500 in HomeDepot and it appreciates 10% in 1 year. Then you make $50 - $16 = $34. Which is just 6.8%. Instead if you invest $1000. Then you make $100 - $16 = $84. Which is 8.4%. So it is obvious that higher is your investment , lower is your fees. Based on my experience, $1,000 is a decent amount to start with on a stock. Have fun investing. Dan.
