Fractional stocks? What are your thoughts?

[FrankenStrat]

Need advice..
How to get in on this this stock scene. To much wasted time. I know nothing about investing.
Been seeing this Schwab stock slices thing on TV and thinking to get into it. Have come to learn that there are several similar offerings. To u experienced people, can you please advise a good place to start? I lost my job in April due to the pandemic, so have to start small investing for now.
The fractional investing schemes any good?

Thanks!

 

[FrankenStrat]

Wow. Ok. Nobody. Like my Justine Bieber Tribute band...ok...

 

[ActionJ]

Ok, I'll chime in. To start, if you dont have time to learn the basic, read the financial news or track performance through out the day, then invest in a gic or some Canadian Savings bond. They are safe and you dont have to worry about crazy dips in the market.

As for the concept of trading and holding fractional shares, it's a great idea. It will allow the small investor to buy into high value stock. I look at the Schwab slice. It sounds ok. But you can only buy into securities in the S&P 500. This will limit you to the type of securities you want to buy. Also, how much is the exchange fee on sales. These will really eat into your profit.

 

[ExoticCharmer]

I know nothing about investing.
...
I lost my job in April due to the pandemic

Couple things to consider @FrankenStrat:

- Investing is long term, trading is short term. Given your circumstances, I assume you want something short term.
- Not a good time to start, you will be too emotionally invested to think rationally. New investors/traders tend to get sucked in and "marry stocks".
- The issue with the financial world in general, anytime they come out with an affordable/cheap option, they give the impression of "it's just a few bucks, nothing to worry about". It's easier to suck a few $100 from 1000's of people than it is to suck a few $1,000 from 100's of people (pun not intended lol or maybe it is).

As for your question on slices...

- Their info page: https://www.schwab.com/fractional-shares-stock-slices
Conceptually, this is simple enough. Your investment of X slices is taken as a $ percentage relative to the share price.

- @ActionJ brings up a good point about fees but that's not even a concern here if you can't even make money. Keep in mind, everything is relative to stock price.
How often does a stock double in price? That's how often you'll double your $5 lol. Stock moves a few % a day, so you might make or lose a few pennies a day per $5 slice.

TL;DR Don't bother...

 

[THELMFAO]

Couple things to consider @FrankenStrat:

- Investing is long term, trading is short term. Given your circumstances, I assume you want something short term.
- Not a good time to start, you will be too emotionally invested to think rationally. New investors/traders tend to get sucked in and "marry stocks".
- The issue with the financial world in general, anytime they come out with an affordable/cheap option, they give the impression of "it's just a few bucks, nothing to worry about". It's easier to suck a few $100 from 1000's of people than it is to suck a few $1,000 from 100's of people (pun not intended lol or maybe it is).

As for your question on slices...

- Their info page: https://www.schwab.com/fractional-shares-stock-slices
Conceptually, this is simple enough. Your investment of X slices is taken as a $ percentage relative to the share price.

- @ActionJ brings up a good point about fees but that's not even a concern here if you can't even make money. Keep in mind, everything is relative to stock price.
How often does a stock double in price? That's how often you'll double your $5 lol. Stock moves a few % a day, so you might make or lose a few pennies a day per $5 slice.

TL;DR Don't bother...

I agree. Your main focus should be securing employment.

 

[FrankenStrat]

I agree. Your main focus should be securing employment.

Agreed!
Thanks all. Working on employment all the time. Was just thinking to get 2 x $50 slices consisting of Apple, Amazon, Facebook, etc and just parking them to see what happens over time.
When working again was thinking to get some Canadian blue chip that pay regular dividends and keep investing in those... Then eventually get into tech and pharmaceuticals, etc... But what do I know...

Thanks all

Read a site that compared several of those fractional stock plans. The recommended one charges much less fees than the others. This find it again and have a proper read but being unemployed is A LOT OF WORK!

 

[JuanGoodman]

Agreed!
Thanks all. Working on employment all the time. Was just thinking to get 2 x $50 slices consisting of Apple, Amazon, Facebook, etc and just parking them to see what happens over time.
When working again was thinking to get some Canadian blue chip that pay regular dividends and keep investing in those... Then eventually get into tech and pharmaceuticals, etc... But what do I know...

Thanks all

Read a site that compared several of those fractional stock plans. The recommended one charges much less fees than the others. This find it again and have a proper read but being unemployed is A LOT OF WORK!

I wouldn't invest any money until you learn about trading stock market. It's like any other skill or profession, it takes time and dedication to get good at it.

I would start here. Watch this video and if you last to the end or even better watch the other 3 that follow up, you might have what it takes to learn. Good luck and enjoy. It could be life changing skill.

 

[FrankenStrat]

I wouldn't invest any money until you learn about trading stock market. It's like any other skill or profession, it takes time and dedication to get good at it.

I would start here. Watch this video and if you last to the end or even better watch the other 3 that follow up, you might have what it takes to learn. Good luck and enjoy. It could be life changing skill.

Thanks!!!

Will watch for sure.