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Hi, Danny!

This board is not very active. I'd try posting your question on the Investing Beginners board in the Learning to Invest section.

That said, I wanted to talk to you a bit about commissions and how they can really eat into your returns when you are buying in small increments. Let's say your broker charges you $10 per trade. That means you will lose 2.5% of your principal of $400 the minute you make your trade, and will have to make a 2.6% gain from there just to break even back to $400. And we didn't even talk about the $10 commission when you sell!

It takes a lot of work and experience to be able to beat the S&P 500 by a few percent every year on average (the "on average" is important: you'll never beat it every year), but a sure fire way to prevent this is to start a few percent in the hole due to commission costs.

What I would recommend is to make sure that commission are no more than 1% of your principal. With a $10 commission this works out to investing $1,000 at a time. Instead of investing every month, send the money to a high yield savings account until you have saved up at least $1,000 and make your trade then.

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