Does anyone in here have an E*Trade account How does it work?

Question

I was going to sign up for an account on E*Trade but I got spooked when It asked me for my Social Security number so I closed the page! Because I did'nt know what I was getting myself into. What did they need it for Tax purposes or what? I Imagine someone could loose alot of money on the site if they don't know what there doing (like me!) but people make money by buying and selling stocks right? I want to learn how it works before I commit to anything. And if I do decide to sign up I like the cash option because it sounds like theres less risk am I right? Info anyone?

Answer 1

All financial institutions require a SS# (brokers, banks, etc). It is for tax reporting purposes and/or to conform to the Patriot Act. Brokers report your sales to the IRS. Just make sure the site you are at is DEFINITELY etrade, when you enter that SS#. (or, if you prefer, download the application, fill out manually, and fax or mail it in).

As far as how to trade?  Yes, you certainly CAN lose all your money. If you trade on margin, you can lose MORE than all your money.  Don't trade until you know what you are doing. Etrade has alot of information right on their site.  They used to have a demo acct (where you practice trading with fake money)...don't know if they have that anymore.

Answer 2

Every broker needs a Social Security number for tax purposes.

Hopefully you've taken  6 months to a year to read several books on investing or trading.  I read a new trading book almost every month.

Hopefully you have an asset allocation plan. Hopefully you know that no stock should be purchased without an exit plan (before you buy). Hopefully you'll have a "stop" on every position.

Hopefully you know that money management (esp. position sizing, stops, risk reward ratios... etc.), are more important than picking the "right stock".

And lastly..... hopefully you don't plan to make the typical #1 mistake of new traders...... buying stocks under $10 a share.