Quote:
Originally Posted by KC911
Not Fidelity if one simply bought a few positions an monitored them...it would be a good vehicle for encouraging him to learn how to "invest" and discourage trad...I mean "gambling" imo. My annual fees are insignificant (as stated, I am NOT a trader).
I thought for sure that Ian would be behind bars by now  ...he's just way to cool and collected for that though....just goes to show ya how the hand eventually plays out if ya don't fold 'em early in the game. |
Fidelity has a minimum balance on a brokerage account of $2500 and $8 trades. So with a few hundred bucks that is out of the question. Brokerage houses just aren't designed to have very small amounts of capital. When they do accept small capital levels they impair huge fee's. Which is why I thought doing it solo would be the smarter path. I'd encourage transaction fee's in the imaginary account too.
One can gamble in a fidelity account as easy as you can anywhere else. Truth be told though gambling is a part of investing there is simply no way around it. The good investors make the gambling portion of an investment decision as small as possible, but it's almost always there.
You could pick up some good books for him on the subject as a holiday gift:
Snowball is a biography of Warren Buffet. Interesting & LONG book teaches some investment ideas but won't teach a lot about investing. Though Warren's success is quite the motivator.
The Warren Buffett Way. Is a more instructional book on how or why Buffett chose positions at different times.
The Intelligent Investor. A classic, written by Buffett's teacher Benjamin Graham. A book Warren attributes to changing his life.