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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Big who wrote (8139)	1/18/1999 9:01:00 AM
From: backman	Read Replies (1) \| Respond to of 90042

To the thread: (Not for real-time traders, more for folks with e-accounts (DATEK, ETRADE, etc..) and not about internet speculation) My ebrokers don't charge me differently for buying 12 shares or 700 shares…odd-lots don't seem to be a problem So somebody explain to me the desire to own stocks under $10.00? Symbol Bid Ask Spread CLST 8 3/8 8 7/16 1/16 EDUSF 7 ¾ 7 13/16 1/16 HOLT 5 3/8 5 ½ 1/8 DELL 78 15/16 79 1/16 MSFT 149 ¾ 149 13/16 1/16 Assume you have $10,000 to invest. The commission for the trade is the same. On the $10 stock, 1/16 is .625%, an 1/8 is 1.25%, so I have to earn that back on the selling point to get to break even…kind of like the depreciation on a car as you drive it off the lot On the $100 stock, 1/16 is .0625%, an 1/8 is .125%…less depreciation on my original investment… more of my capital going to my investment+ less into my trading expenses =more BANG for the buck While it might be easier for a $10 stock to go up 20% (or go down 20%), the less I give up in trading expenses, the more money left over …looks to me like better returns on my capital….and, IMO, if all you have is $10,000, you've got no business putting it into a more volatile, lower return investment. david s Disclaimer: I know it's not as much fun as looking at lisa's personal profile, and i'm sure i'll find the naked picture (or go blind trying), but...