Hi all, new to this website/forum and hoping I could get some questions answered for starting out in Trading (buy and selling shares) in the stockmarket.
Before I start with my questions, I feel it is important to convey where im coming from and my investment goals.
I wish to start with $5000.00 to invest in one stock with a long term out look,
and continuing to purchase new shares either once a month or yearly. I can buy $1000.00 worth of shares per month or $12000.00 per year.
Assuming the cost of buying and selling shares (brockerage cost) is $30 per transaction (trade) my initial entry would be $30 and 12 transactions(trade) a year would be $390 ($360/yr).
So my initial question is
Would I be better of buying $1000.00 worth of shares per month at a cost of $390 or banking $1000.00/mth and making one purchase per year of $12000.00/yr at a cost of $60.
I know the answer would depend on what shares I buy and weather of not they go up or down in price but im looking at long term (say 10 years+) historically share prices go up over the long term so Id say its pretty low risk.
The difficulty is how much would they have to go up averaged out over 10years to cover the brockerage costs of buying monthy and the same of buying yearly and determining what would give me the better return.
Any advise would be greatfull
Once I figure out my best option I will be asking even more newbie questions for getting started at the begining. Questions like, opening a trading account, how to open a brocking account and who with. Heck im so newbie I dont even know the questions to ask yet..lol