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trading stocks with small investment?

i am new to trading. i have a small amount of $2000 which i am willing to invest esp in stocks/funds . my main aim is to learn while i invest, and i am even prepared to lose some money while i get valuable experience and knowledge in trading world. I recently opened online trading account with TD Ameritrade and they are offering 1 month commision free trades. so i am thinking to trade stocks for a month, ie to buy and sell them quickly. i know this is not a great idea, but with no commision involved i thought it wont be a bad idea after all. i had few questions 1) is it a good idea for me to trade for a month ( as there is no commision). i might make/lose money but the experience with actual trading might be invaluable 2) which might be the best stocks for a month now. at the end of my 1 month free period i will stop trading and invest this $ 2000 in stocks of 2-3 company. i wanted to ask is it ok what am i doing?

Public Comments

1. What you are talking about doing is called scalping. You buy and sell sometimes every few minutes. You will need to keep detailed records and you will have to pay capital gains on any stock that you do not hold 1 year or longer. First, let me back up...You really need 20-40K to do this well. You should Google some books on trading. I did swing trading, similar to what you are doing...but you hold the stock for 2 days to 2 weeks. It does get involved...you need to put in Stops or you can lose any profits. More later....
2. DANGER WILL ROBINSON! Dont be fooled by the "no commissions" first month gimmick as an excuse to go trade crazy. You need to paper trade first, that is pretend trade with an imaginary $2000. Do this for 3 months and see how it goes before you commit real money into anything! You also need to learn things like technical analysis for understand stock charts, like this tutorial here: http://www.hotstockmarket.com/forums/showthread.php?t=27430 You have to learn how to walk before you can run.
3. I suggest you keep your $2,000 and do a lot of studying and research, and try and save some more money...get your account up to at least $5,000. Also, forget about short term trading with so little money. SEC rules require you to have at least $25,000 in your account in order to daytrade. If you go to my website you will find a recommended reading list. Scott Cole www.kungfutrader.com www.bestdaytradingstocks.com
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