Since I began investing with my Scottrade account (about two years), I decided to focus my efforts on Dividend Stocks. However, since my capital is limited, and after my success with both McDonalds (MCD) and T.J.Maxx (TJX) both are currently up over 40% and TJX just announced a 2-1 split. I have decided to divide my portfolio for both growth and dividend earning. Then as we get closer to our retirement (or semi-retirement) I will move to hold more heavily in dividends.
I am excited to find some undervalued stocks to add to our growth side, and thinking about the oil and gas sector. There are some stocks trading under $1.00. These could be either an opportunity for huge growth or just a dumb risk? I know I need to do some research before I pull the trigger. Currently we are looking at Quantum Fuel Systems (QTMM) and Quaterra Resources (QMM). I hope to make a trade this week. I will post when I make the transaction.
*Interesting Point* When I was looking on the Scottrade site to purchase a stock under $1.00, I found there is an extra fee. There is the normal $7.00 trade fee, but for stocks trading under $1.00, there is also a fee of 1/2% of the principal value. For example, if I want to buy 8500 shares of a stock trading at $0.50 /share, there will be the $7.00 normal trade amount PLUS, $21.25 (8500 shares X $0.50 = $4,250.00 (principal value) X 1/2 % = $21.25) Total trading fee $28.25, just something to consider. Kinda discourages lots of day trading on the Scottrade account.