Its possible but can you guarantee it will go up?
If it was as certain as you think then everybody would be doing it and everybody would be making money
3 VERY important things you need to know when buying stocks and shares
1) The ONLY money in the stock market comes from other investors
THAT means that when anybody makes a million other investors MUST lose a million
2) its FAR FAR easier to be a loser than a winner
3) there is no such thing as risk free trading - the best you can achieve is limit your losses
One thing to think about
You will see lots of books and software claiming they can make you money if you use them
Now think about it
If YOU had written a book or software would you be advertising how "good" it was and how others could make money using it OR, would you keep it secret, use it yourself, and make YOURSELF a fortune
Its looks like you are going to predict the value of stock in the future, I would like to tell you that you are on the right track because if you want to do something different than you have to think differently. This is the correct approach theoretically and practically. To do the effective and risk free trading you can take the help of technology, there are so many Automated trading Systems are present in the market which can help you a lot and you can start stock trading like experts. These systems allow you to calculate the values of stocks and also select the best one for you with the help of best fundamental research. These systems really work, and can be helpful for you.
in theory, yes. However, there is a commission fee every time you trade (trade = buy or sell). For example, if your commission fee is $10 with your broker, That means if yoiu buy 1 share of GOOG for $500, you will be paying $510 for it. Then if you sell it for $540, you will be getting $540, but then paying $10 fee. So as it may look like you earned $40 in a couple days, you really only earned $40 - $10 - $10 = $20. and at the end of the year, a short term (less than 1 year) gain on capital (your profit from stocks) of 30%. that means you've only really gained about $14. But hey, if you gave me 2 pennies, then took 1 penny away, I'll still be a penny richer that I was before, right?
A couple tips: The more you invest at one time (in 1 trade), proportionally your flat commission fee would be less. So in theory, the more the better. Also, look up wash sale, and settlement date, good to know for short term.
Yes, that is what it means. The price could also go down by any amount.
If you buy stock hoping that you can sell it for a quick profit because of the daily (or monthly) swings in price, then you are not investing. That is gambling and on a large scale. You are hoping that for some unknown reason, the trading price will go up instead of down, and that you can outguess the public and sell at the best price.
On the other hand, if you buy and "hold" stock in quality companies that are earning money, you are not gambling. The prices of these stocks go up for a real reason; the companies are earning money every year and becoming more valuable.
If you save a portion of your income each payday and invest in sturdy stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to go to work and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
When you own stock, you are the owner of the company and the earnings belong to you. But it takes time to earn money.
Some people can learn from the mistakes of other people. Gamblers can't and usually ignore advice like this.
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Good question.
The only things certain in life are death and taxes. Yes. You always have to pay Uncle Sam first.
If you buy and sell within a year, it's a short term investment, and the gain is treated as your normal income, taxed at your normal tax rate. If you buy and sell after a year, it's a long-term investment, and the highest tax rate is like 15% of the gain.
Caution: Stocks can be volatile. Invest very carefully.
I'd like to get into stocks as things like that interest me. I have some questions about it. Google has stocks for around $525, and they can shift $20 up and down daily, does that mean in theory that i could wait for the right time, buy a share for $500, wait a day, and sell it for $540 and come out with $40? Or are there crazy taxes.. $40 is alot to me because im only 15;my mother is going to put some money on an account and let me do this after i research it, and this is part of that so. Can i get some other general information/tips about small short time investments?
