How to Build a Low Risk Stock Portfolio with Zero Costs?

Do you want to invest but scared of picking the wrong stocks? Are you intimidated by the ups and downs of the stock market? Here are a few tips on how to buy 500 of the best stocks on Wall Street at Zero Cost to you. Best of all, you only have to do it once a month.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• A computer with internet access.
• A very introductory knowledge of the stock market.
• Adequate funding for a stock transaction.

1. Calculate how much you can afford to invest without struggling each month with normal expenses. Try to set aside this amount each month if possible.

2. Setup an account at Zecco Trading. This requires 10 minutes of basic paperwork such as: name, address, etc.
   
   Fund the newly created account with the amount you would like to invest each month. It can be $100 or more, but Zecco requires a minimum of $2500 to trade for free.*
   
   
   * Until that balance is met, trades are just $4.50.

3. Lookup an investment called S&P 500 Spyders (pronounced Spiders).
   
   This is an Exchange Traded Fund (ETF) that tracks the S&P 500 index, but can be traded like a stock. The S&P 500 is a broad collection of 500 stocks that are the leaders of the US economy.
   
   Spyders trade under the symbol SPY.

4. To determine how many shares you can purchase with your deposit, follow this simple equation:
   
   Available Cash / SPY Price = # of shares you can purchase.
   
   Example:
   
   SPY Price on Jan 13, 2008 was $140.26. You deposited $2500.00 in your account. How many shares can I buy?
   
   $2500.00 / $140.26 = 17.82 --> You can purchase 17 shares (ignore decimals)

5. If this is your first time using an online broker, it would be advisable to use the Help Sections or Online Tutorials available.
   
   Go to the trading menu, enter the amount of shares you wish to purchase (17 in this case), and click buy.
   
   Congratulations! You just became an online investor.

Tips & Warnings

• This should be done once a month or once every 3 months if possible to increase your account balance. Using this strategy will allow you to gain compounded interest over time, which is a great method of accumulating a sizable investment account.
• Investing in any type of investment vehicle requires risk. This is not a guaranteed investment or advice to purchase SPY shares, but a very simple and extremely conservative way to invest for yourself with extremely low fees.

Resources

• CLICK HERE TO SETUP YOUR ACCOUNT AT ZECCO !!!

[psaysofavril]

on 1/22/2008 I am a beginning investor and was lost as to where to begin. This info will really help. Thanks!

[mgmt85]

on 1/17/2008 I like this information. GREAT JOB!!