> Stock Investment Question ?

Stock Investment Question ?

Posted at: 2014-12-05 
yes it is. But let me throw in some reality factors here, just so you can be more prepared. 1) You probably dont have a million to invest. and if you do, I wouldn't do that if you were just beginning. 2) dont forget to factor in commission fees. since they are flat rate, the more you invest at a time, the lower (proportionally) your flat rate is. 3) when you sell something, at the end of the year you'll have to pay taxes on capital gains. the current tax rate is 30% for short term (less than 1 year) and 15% long term (one year or more). 4) 40% gain is not seen often.

Good luck! you are on the right track

first, get a million dollars...

yes in theori....lol. in real life, most of the time you need to wait to sell all your stocks.....

I made this for a simulation just to test if im ready for investing :

So lets say, somehow I received 1 million dollars (US dollars). Then, I used this 1 million dollars to invest in company X. The next year, my investment went up to 30%, so that means I received $300,000. I took all the money away, so now the money is $1,300,000.

Later, I moved all the money ($1,300,000) into another company, and the next year it grew into 40%, so now the money is increased by $520,000. So now the total money is $1,820,000. I took away the money and kept it.

The next year I put the money ($1,820,000) into another company, and it rised up to 20% when I took it. So its increased by $364,000, now the total money is 2,184,000

Question is, is this calculation method right ? Is my calculation correct ?