some silly questions

Tyrant^

Hey Everybody.

Just made my first trade monday of a whooping €150.
Just have a few silly questions so silly that google doesnt seem to know either.

After The exchange opened the order went into posted now its set as executed. Ive been reading on google it takes some exchanges up to 3 days to settle a trade. What happens with the stock during this time period ?

Do I still pay the original price or the price 3 days time ?
Do I still get earnings on the stock during this time period and is it possible to sell it to cash out on any possible earnings (not that im going to sell them, im just curious)
And if im not able to sell how does day trading work if it takes so long for a trade to become settled ?

Also how does the tax work ?
Capital gains tax / Dividends tax I believe ?
Whos responsibilty is it to calculate the tax and deduct the amount from the account ?

Thanks for reading. All comments welcome !!

Im using http://www.internaxx.lu
And the stock I bought is Harris & Harris (TINY)

dunkamania

You pay the price that it was executed at. The money doesnt get exchanged for the shares until settlement date, usually 3 days later. This is really more of a technical issue for your broker, and not something you need to worry about.
So yes you would be affected by price moves between the trade date and settle date.
You dont need to wait for the shares to settle before you sell again. Similarly, sales are settled 3 days after the trade date. Again this is a broker/exchange issue, so dont worry bout it.

Its your responsibility to pay the taxman his due.

Raskolnikov

Tyrant^ wrote: »

Just made my first trade monday of a whooping €150.

Sure fire way to the poorhouse. If you're paying €10 a trade, then you're effectively down 13.3% once the order goes through (you have to pay €10 to sell too).

Personally, a minimum trade for me is $1,000. My trades cost $8, so my that means my maximum costs are 1.5%, which I can't say I'm incredibly happy about.

strmin

http://www.internaxx.lu charge is €28, so he is down nearly 20%. I can't even begin to understand why people use expensive European brokers to buy tiny amount of American shares. Total waste of money. Just open US broker account and pay from as little as $1 per trade.

dunkamania

If its a part of a learning experience, than its well worth it for a newbie.

I only wish my smallest trading error was 28 euro, as opposed to 200 times the size.

Mr_Roger_Bongos

Tyrant^ wrote: »

Hey Everybody.

Just made my first trade monday of a whooping €150.
Just have a few silly questions so silly that google doesnt seem to know either.

After The exchange opened the order went into posted now its set as executed. Ive been reading on google it takes some exchanges up to 3 days to settle a trade. What happens with the stock during this time period ?

Do I still pay the original price or the price 3 days time ?
Do I still get earnings on the stock during this time period and is it possible to sell it to cash out on any possible earnings (not that im going to sell them, im just curious)
And if im not able to sell how does day trading work if it takes so long for a trade to become settled ?

Also how does the tax work ?
Capital gains tax / Dividends tax I believe ?
Whos responsibilty is it to calculate the tax and deduct the amount from the account ?

Thanks for reading. All comments welcome !!

Im using http://www.internaxx.lu
And the stock I bought is Harris & Harris (TINY)

Hi Tyrant, as you'll see trading is a process of continually improving your market knowledge, but you've taken the 1st important step!

You have received some good advice from the posters above - Transaction costs are a very important factor when buying shares.

For US Stock particularly, charges per trade are dramatically lower, increasing potential profit and reducing potential loss!

Can I ask how you picked TINY? I know Pocketdooz reccomended them!

Tyrant^

As you said pd recommended them.
They are fairly cheap
Ive been reading some articles about them they seem to have allot of potential
I have an interest in technology and I believe being able to with things nano sized is the future ! Should be able to do some amazing stuff !

Not a very technical analysis I know :rolleyes:
Hope to buy a few more shares when I manage to get some more cash together.

My next trade will be a minimum of €500 - 700

mono627

Tyrant^ wrote: »

As you said pd recommended them.
They are fairly cheap
Ive been reading some articles about them they seem to have allot of potential
I have an interest in technology and I believe being able to with things nano sized is the future ! Should be able to do some amazing stuff !

Not a very technical analysis I know :rolleyes:
Hope to buy a few more shares when I manage to get some more cash together.

My next trade will be a minimum of €500 - 700

Just a quick question, are you basing your trading decisions based on other peoples analysis on an internet forum? Did you have a look at their financial statements?

Tyrant^

had a look over the latest financial report
and read some articles from some news websites
Will obviously do much more research when investing more money

Have another side question...

How much time would you gentlemen spend picking your stocks ?
Reading through all the financial details
Looking into the Directors of the company
Comparing with other companys in the same market

And am I missing something else ?

hmmm

Tyrant^ wrote: »

How much time would you gentlemen spend picking your stocks ?

A couple of days identifying candidates using screening tools. Spend some time reading each 10k and filtering the no-hopers out quickly (maybe 1 hour each). From there probably a few days reading everything I can find on the particular company.

Tyrant^

Raskolnikov wrote: »

Sure fire way to the poorhouse. If you're paying €10 a trade, then you're effectively down 13.3% once the order goes through (you have to pay €10 to sell too).

Personally, a minimum trade for me is $1,000. My trades cost $8, so my that means my maximum costs are 1.5%, which I can't say I'm incredibly happy about.

Ive been looking at other brokers
https://www.interactivebrokers.com
http://www.tradestation.com/

Both either have monthly fees for their trading platform and require a minimum deposit of around 5k.

Can you or anyone suggest any other brokers that dont have these minimum deposits or monthly fee's that are cheaper than internaxx ?