? Which are good stocks to invest in?
? How do stocks really work? Like make good money?
? Is it like gambling money?
Can you make millions in stocks? Yes. But, you also have to ask yourself: "Can you lose millions in stocks?" Yes
? Which are good stocks to invest in?
Obviously, you want to invest in stocks that are going to make money. How do you do that??? THAT'S THE BIG QUESTION.
Let me ask you - what do you know about stocks? If I were to say invest all your money in stocks X, Y and Z - how would you know if I'm right, or if I'm some kind of con-man?
The best thing you CAN DO - and remember whose money we're talking about - is to educate yourself in stocks. That way, you'd find out for yourself whether you can really make millions in stocks.
With a good education in how your target-market works, you might just make a million - but it will take you perhaps 10-20 years to do it. YOU'LL MAKE MISTAKES - YOU'LL LOSE A LOT OF MONEY AS WELL. (Hopefully you'll learn from those mistakes and change your approach.)
? How do stocks really work? Like make good money?
Nobody knows for sure
? Is it like gambling money?
Definitely - if you know nothing about investment, you may as well set your cash on fire. There might be one or two successes - but generally the house wins.
Donut Tim has a good response. the important thing is to remember that you are purchasing companies not stocks. There are numerous techniques to investing, and people have made quite a lot of money in all of them. However, the surest way is to be unemotional in your investing practice, view market downturns as a buying opportunity, and learn A LOT about business and business strategies. You need to know a ton about what fundamentally makes a company successful in order to predict large capital gain for the future. I'd suggest Warren Buffets three favorite books, it's a bundle on Amazon, and will give you some very straightforward and easy to understand insight into value investing.
Also, in my opinion certain kinds of "investing" is gambling. Futures trading for its own sake, day trading stocks, Forex, essentially those types of investment techniques are gambling. If you take your time in valuating a company and are unemotional about market fluctuations, than it is not gambling.
As for how do stocks really work, I think Donut Tim covered as much as you can cover in a brief answer. I'd again suggest the book bundle I mentioned above.
It's kind of like gambling, although some stocks are a lot riskier than others. But any stock's value can go down, especially in the short term. You choose a stock you buy, and if it goes up, you can sell it for more than you paid for it.
To make millions, you'd have to have a lot of money to invest, and invest over the long term,many years/decades.
Principal: The higher the potential gain, the higher the risk. Back a favorite and you have a good chance to win 10%. Back the rank outsider and you have a slim chance of wining 200%.
Take another approach divide your play money by 20 and back 20 rank outsiders. You only need one to win and you get your 10% profit plus you have had a days of excitement.
A more serious approach: look at your bank interest; compare it to the dividend your bank is paying its owners - shareholders - it is usually better to own a bank than be it's customer. You not only get your dividend, you stand to get a good price when you sell the shares. Overtime this conservative approach is nothing like gambling. Buy 10 good companies - ones you believe will still be around in 10 years time - a few may fail but most will grow with the general economy and some will have stella rises. The rises will more than compensate for those that fail. This is so because the economy rises with the growth of the population. People compete to get good jobs in good companies. The best people get the best results. Its impossible to predict which one so we spread our investments. They will all rise and fall but most will grow.
A person can invest in stocks or gamble with stocks.
Here is how stocks work:
Whoever owns the shares of stock are the owners of the public company, no one else. When you buy a share of stock, you are then one of the owners of that company. It could be any of over 13,000 companies that are traded with stock on the open market such as McDonald’s, Coca-Cola, Amazon.com, Ford, Krogers, your local bakery or electric company.
As a company earns money, it becomes more valuable and this value is reflected in the price of its shares on the open market. You can collect this increase in value when you sell your shares for more than you paid for them.
The company’s board of directors makes the major company decisions and decides what to do with its net earnings.
?Some or all of the earnings may be re-invested in the company so it can grow, open new stores or make repairs. When this is done, the earnings money is used up but the company is more valuable by that same amount.
The per share price, having increased because of the earnings, retain that increase when the earnings are re-invested in the company.
?Some or all of the earnings may be given directly to the shareholders and this is called a dividend. They just mail you a check or send the money to your brokerage account. This makes the price of the stock decrease by the same amount as the dividend, so you have the same value in the total of stock and dividends.
Since you are an owner of the company, the members of the board of directors work for you. You can inform the board of your ideas, concerns or recommendations and these carry the weight of your shares.
Each year there is an election and you can vote for the board positions and some special rulings, one vote for each share that you own. If you own at least 51% of the shares then your vote always wins in the election.
You are also protected when you own stock. For instance, if your company gets sued and loses more than it can pay, the law cannot come to you, one of the owners, and confiscate your house or other property. The value of the shares may decline until they become worthless, but that is all you can lose.
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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 gambling rather than investing. You are trying to guess better than the public, including professionals, how the price will change.
To truly invest, choose a company that has steady earnings each year instead of losses. If your company has very little long term debt, it will likely not get into financial trouble.
If you buy these quality stocks and hold on to them for a period of time, the share prices will go up for a real reason - the companies are earning money every year and becoming more valuable. This is not gambling; you are owner of a money making business. But it takes time for the company to earn money for you.
If you save a portion of your income each payday and as it accumulates invest in stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
To answer your first question: Yes, you can make many millions.
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If your not sure what you want to invest in, go to Yahoo Finance and find Gainers%. Try finding the stocks with the least amount of price change and read in on those because they might go up to 20 cents in that day. Consider 20 cents a lot if the stock price is 2 dollars where you would get 100 dollars if you invested 1,000. I think 100 in a day is a good beginners earning and the more you get the more you can invest
Yes, you can make millions from stock market. But stock market is a slow process to make huge capital, you have to invest bundle of money if you want to make more. If you have good knowledge about stock market then try to catch the best investment stocks otherwise follow an experts to earn money.
Buying individual stocks is a form of gambling in the sense that the stock can make you money one day and lose you money the next. I prefer investing in mutual funds in a variety of business types. Mutual funds are simply collections of stocks that provide you the benefit of diversification. Furthermore, mutual fund managers are a lot smarter than you and I, which allows them to make better decisions about what to buy and sell, and when.
If you invest for long term then you can make money in the stock market too , you should invest wisely in order to earn profit and stay there for long term and invest in bluechip stocks with fundamentally strong companies
The man with the really long answer gave you the definition. The long one. The answer is yes. But it is VERY unlikely. Unless you find the next Walmart you might make $100 a week. What's better than stocks are horse races. You can make thousands of of those in one night.
I'm thinking lnvesting money in stocks...
? Which are good stocks to invest in?
? How do stocks really work? Like make good money?
? Is it like gambling money?
Yes but one thing to remember is that making a million bucks requires you to be really smart and takes a lot of patience as well, with stocks when you take big risks, you get big rewards but unfortunately with big risks come big losses, so to counter that you have to diversify, invest in different kind of stocks, take risks with some while staying safe with some.
Time To Buy Oil Stocks..If you’ve spent a lot of time on the site, you see that we provide resources on some pretty advanced topics – financial statement analysis, financial ratios, capital gains tax strategies, and more.
It is possible, Invest in good stocks on long term basis. Anyhow, it is risk based investment.
Only if you start with millions of dollars, because stocks go up slowly, and can also come down. {Yes, Warren Buffet did it - but he had boo-koo bucks from insurance buyers to invest, the game was different then, and he has had 40+ years}
Sure you can, my uncle became a multi-millionaire thanks mostly to his investments in the stock market since the mid 1970's.
Yes but it takes years to build a great portfolio.
buy this book, I am reading the 2013 version right now.
http://www.ebay.com/itm/The-100-Best-Sto...
