What to Do with All the Free Scottrade Trades?
In early September, I put up a post on the new Scottrade 3 commission free trades promotion. Because I have been a loyal Scottrade customer for many years and generally quite happy with their service, I wanted to share the promotion with everybody so people can save some money on commissions if they want to have a Socttrade account (Scottrade charges $7 per trade, so the total savings from this promotion is $49) and get some free trades myself at the same time. Since then, some readers contacted me to request the referral link. Many simply used the promotion codes I left in the post to serve themselves (it’s still available BTW). When I checked my Scottrade account yesterday, I saw that in the past 1.5 months, I have earned more than 1050 free trades (Thanks everyone for using my promotion code)! That’s a shockingly large number I have to say.
While I am happy to see that many people had taken advantage of this offer, the problem I am having for myself now is: How to use all the free trades before they expire in half a year?
Of course, I can only use them to buy stocks. But what should I buy? The last trade I made with Scottrade was the 60 shares of Morgan Stanley (MS) I bought last month, which went terribly bad. From what’s going on in the stock markets so far this month, October will be the worst month for investors in a long time. And when that happens, there should be plenty of opportunities to buy stocks, as Warren Buffett said recently in a piece in NY Times. To do just that, I just transferred $1,000 new money into my Scottrade account, the first in a long time. I don’t have anything specific in my mind now what to buy, most likely I will start with what I already own. Any suggestion on what look attractive now?
In any case, most of the free trades I earned are probably going to expire. 1050 trades? I never imagine I could make so many trades 
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- Pingback by What to Do with All the Free Scottrade Trades? on November 3, 2008 @ 3:34 am
you could just use all the trades to average into positions over time, seeing as there’s no way to time the bottom of the market. also, i’d suggest using some of the free trades to buy some hedges, like SDS for instance, its 2x the inverse of the market. so if the s&p goes down 2%, SDS goes up 4%. so you could buy some indexes with your trades and then buy a 20% position in SDS to hedge yourself from near-term downside risk as you average into your position for the long-term