Generally, when I’m investing I like to invest $2,000-$3000 at a time if I’m buying individual stocks or ETFs. For example, I’ve been buying individual stocks and ETFs for my childrens’ educational IRAs, which have a $2,000 limit per year, so I just pick one stock or ETF to buy each year with the full $2,000. The next year I buy a different stock or ETF or add to a position I have. I also try to find investments that I plan to keep for 5-10 years or more so that I don’t lose money to fees by selling and buying again.
The issue with buying small amounts, because there are usually minimum brokerage fees charged, is that the brokerage fees become a large percentage of the amount you invest. For example, if the minimum fee is $25 and you buy $100 worth of stock, you’ve paid a 25% brokerage fee. If you buy $1000 worth of stock and still pay a $25 brokerage fee, you’ve only paid 2.5%.
Now that you have invested, however, to move it would create more cost, so you should probably stay where you are unless you decide you really don’t like one of these companies for a good reason. Instead, I would start building up cash a little each month and trying to put a couple of thousand per year (or more) into your IRA. You can then start to buy funds/ETFs. Note also that if you buy into an open-ended mutual fund, you may be able to add more money without paying additional fees. Many dividend-paying stocks with dividend reinvestment plans also offer this option.
It is great that you’ve started an IRA – that’s an important first step that unfortunately many people don’t take until they’re in their forties or later. That puts you ahead of the game already. The next step is to ramp it up a bit and make retirement savings one of your regular monthly activities. Start putting away whatever you can. Try to build this up, perhaps increasing the amount you contribute as you get raises, until you’re putting 10-15% of your paycheck away for retirement, which is enough to make sure you have a comfortable retirement. If you have a 401k available, invest enough there to get the company match, the switch to the IRA up to the max, then go back to the 401k if you still have not reached the 10-15% goal. If you don’t have a 401k, fund your IRA to the max and then start investing in a taxable account long term in stocks or growth mutual funds or ETFs such as S&P500 funds or ETFs since they have little turn-over so most of your money will compound anyway.