I don't really know much about buying stock... I am basically a Wall Street nub. I have $400 spare, and I am frankly sick of buying clothes, games, or other nonsense I waste my money on. I want to take this money to the Street. I know $400 wont get me much, but I want to invest it in something.
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What are you gonna buy, 2 shares of GS? I think you need at least $1,000 if you want to start investing.
$1,000 I will invest.
You can start investing with any amount of money. The only problem is trading fees are going to eat you alive with any small amount. You could always look into trading options which you can start doing with much less cash as opposed to taking a long position in a security. But.... since you're a wall street "nub" I wouldn't really recommend that.
If you REALLY want to invest that money right now I would put it into either a CD (if you can find one with a high enough RoR to even make it worth your while) or a money market mutual fund while you gather some more cash and learn a little bit more about investing.
I can't tell you whether or not to buy Goldman. But I can give you a tip I picked up on this website.
For many years, I had my account at Scottrade. They are a great company, and the customer service is excellent. Nice, intuitive trading platform too, and decent commissions. You could do far worse.
But I found I was getting eaten alive on my options trades, because their commission wasn't really competitive in that department. So I clicked on a banner ad here on the site for Options House and their commissions were much better ($2.95 for stock trades, $9.95 for options trades with no per-option add-on). Their trading platform is very slick and I've been really happy with them so far.
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I think GS could get dinged by federal inquiries into high frequency platforms - I bought some ootm long-dated puts a while back.
Better question... why do you want to buy Goldman stock other than "you are sick of buying clothes." I mean by that logic, possible alternatives are lottery tickets and horses.
Give us a reason why, it will do you good, believe me.
He who dares wins my friend. Go big on VG and DSCO. I sold out of CIT yesterday for a handsome yield and am just waiting for entry points into these two puppies.
"FutureGekko"
What utility is there on any possible gain from a mere $400 investment?
The return on $400 invested in Goldman in December would buy you anything on this page of the ThatMall catalog:
http://www.thatmall.com/escort/
The WSO Guide to Understanding TARP
Well, it really depends. When GS dropped down to about $70 ... someone I know suggested buying $100 strike calls for about $12 each ... that very someone made over $600k on a $50k trade ...
At this price? I think lots of people are just jumping on the bandwagon ... there are plenty of better names out there to buy. Plus I think a correction is in the works so we'll see.
Finally, the question "is this a good buy" is always a dumb question because GS might be a great company ... but the stock price doesn't always reflect how good or bad a company is ...
But if it's good enough for buffett then it should be good enough eh? :D
Im only hoping to turn at least a $100 profit.
Didn't you get the memo?
Goldman Sachs (now functioning as a large proprietary trading firm) is backed by the American tax payer! Invest away!!
you want to turn $100 profit from $400 investment
returns of 25% ... that's a lot lol
5 days ago i woulda told you to short BAC
Dude GS is $180 a share. One share would result in serious concentration. 20% of your portfolio in one stock is no good – especially when that stock has displayed incredible volatility
What is your rationale? I may be buying puts. 30x PE. 1.7 PB. The regulatory outlook isn’t good for financials.
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