I have about 62 shares of Home Depot stock that my grandparents slowly bought for me over the years (thanks grandparents!), and I want to start building up a more diverse portfolio. Specifically, I want to start investing in quality companies that have a long track record of paying dividends.
I have an online brokerage account with TradeKing, and they charge $4.95 per stock trade. My dad was suggesting that I save up at least $500 before making a trade so that I'd only be losing 1%. I realize that it'd be $5 to sell it as well, but I plan on doing that as infrequently as possible, as I'm looking to be a long-term investor. I considered maybe waiting to save up $1000 for a trade, but I'm already putting money into a 401k as well (about $100 every paycheck), so it might take longer than I want.
I know that you guys can only make suggestions, but I was wondering if there were any general rules that people followed. I couldn't really find anything in my own research. Thanks in advance for your advice!