About victor mader Expertise I`m not a broker therefore I can assure that I earn no monies from my unbiased advice. I usually don`t comment on specific stocks but rather how to avoid getting "taken" by any unethical brokers, financial advisors, etc. I have 35 years of personal experience and stay well informed. My goal is to make you a better informed investor. I`ve been told by several stock brokers that I know more than many registered brokers.
Experience I spend an average of 1-2 hours per day reading about investments and have since 1965. I now have accounts at DLJ and Goldman Sachs, two very fine firms.
Expert: victor mader Date: 3/15/2000 Subject: Trading On-Line
Question Mr. Mader
In reference to the Ameritrade advertising:
The ad states that you can open a cash account for $500, but must have a minimum balance of $2000 for margin accounts. What`s a margin account? I plan to begin investing in some stocks soon, but will mainly deal with a few penny stocks to get started for now...
Thanks,
C.
Answer Dear Christine:
You need to study how to invest before you invest.
Penny stocks are nearly always horrid investments. You'll most likely lose all your money. You make make some money here and there, but in the end you'll lose it all. These stocks are cheap because they're usually BAD companies.
A margin account is one you can borrow against. Put up $2000 and you can buy $4000 in stock. Don't do it until you learn how to invest. Find a recent issue of Forbes magazine titled "Best of the Web" and dated Spring 2000. In the centerfold area you'll find many sites where you can read about investing. Do so. Become well informed or you'll most likely be taken advantage of. Do not work with a broker yet. Study first.
