Expert: Robert Hanzel - 9/9/2006

Question
Hi,
I have some mutual funds for retirement that seem to be doing very well.  But now I would like to get into some online trading of stocks for extra cash to put in the bank.  I am truly a novice at this and will only invest a small amount to start so as not to loose everything right out of the gate.  I have been hearing a lot about investment software.  I would really be interested in software that would give me a list of the current "hot" pics, allow me to invest in those stocks, and would automatically buy and sell per my specifications.  Does such a package exist that isn't an arm and a leg?  Also, i'm told a good place to start is with Penny Stocks.  Would you recommend doing that to start with?
Basically, with $200 in hand to invest, what would you recommend I do to get this ball rolling and take an active part in my finances?

Thanks,

Brett


Answer
Let me start by saying that close to half of the trades that are done each day on the stock exchange are done for an overall loss. So, making money in the stock market is not easy and most, if not all, of the stock software out there is nothing more than a scam. Even worse, you can spend weeks building a profit and have it gone with one trade because the software thought something was "hot".

The truth is, its not easy and its not quick. If it were, there would be a significantly greater number of rich people out there letting their software do their betting for them. What you are suggesting is really more like gambling than anything else and doesn't reflect investing. Unfortunately, if you want to invest you will probably have to do it the olf fashioned way by studying and putting your money where your "studying" is.