Your Questions About Good Money Making Stocks

Donald asks…

After selling stocks – How long does it take for the funds to free up?

After making stock trades, how long is it before you can reinvest/access the money?

John answers:

Yes, it’s usually three days once you sell a stock before the funds are “settled”. Usually the broker will allow you to purchase another stock, but if you sell that stock before the original funds are settled, you will have taken a “Free Ride”.

“Free-riding is the term used for buying and selling a security without having the funds to pay for original purchase. Purchases must be paid for with settled funds or by depositing new money.” –Scottrade.com

Scottrade’s policy is, after two violations the account is suspended for 90 days. If it happens again it may be restricted permanently.

The potential exists where you may be forced to take a “Free Ride” to avoid a loss, especially if you have a stop loss set and the stock plummets right after you buy it. That is one reason it is critical to do your homework before buying into any stock, especially if you’re an active trader.

Nancy asks…

Most reliable way to make money trading stocks?

Can someone please tell me what the smartest and most reliable, beneficial way to make money in the stock market is?

John answers:

It’s very easy, beofe you invest $0.01 in any security make sure you know what you’re, why you’re doing it, how to do it and the rules governing what you’re doing.

The smartest way to invest/trade is educate yourself about the market and the products traded in those markets. You can do this by learning what the Pro’s say about it

Here are some books that will get you going in the right direction
Investing or Dummies” by Eric Tyson.
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
Trading for a Living, by Alexander Elder
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Websites that can provide instructions and help with procedures and terminology are Investopedia – http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks – http://www.1source4stocks.com/info/stock-analyst-opinion.asp or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research – http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily – http://www.investors.com/default.htm?fromad=1
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from The stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.

Good luck on journey, study hard and you’ll invest well

Ruth asks…

Why don’t investors see how easy it is to trade stocks for huge profits?

I just don’t understand why so many are losing big money trying to make money in stocks. This year i am making huge profits in the stock market buying call and put options. This market is so easy to make money in but every where i see people losing money and panicking.

John answers:

Because you are just getting lucky.

Options are a way to hedge your risk. But, they can pose significantly more risk than trading stocks.

If you are just buying puts or calls, you might as well go to the craps or roulette table… Or buy a lottery ticket.

The analogy that I use: Options are like using a table saw. It’s the right tool for certain jobs… And anyone can run down to Home Depot and buy themselves a Delta Machinery 3 HP Left Tilt Unisaw with Biesemeyer Fence (a really good table saw). Plug it in to the wall and rip away! But, if you don’t know what you’re doing, sooner or later, you’re going to lose some fingers.

Buying puts and calls is only part the story. To be effectively profitable you need to combine BUYING puts and calls with stock and SELLING puts and calls.

Options values change for more reasons than stocks going up or down. You can buy a call, have the stock go up, and lose money. You can also buy a put, have the stock go down, and lose money.

If you don’t understand theta and vega risk, you better be very careful… Or, sooner or later, you’re going to have a few less fingers.

** Buy the way, just today I watched a friend’s “put” trade on Apple go from a value of over $70,000 to $8,000 in just a matter of few hours. Can you handle that sort of risk?

Laura asks…

How to Make Money in the Stock Market During the the Economic Crisis and Profit from the Recession?

How to Make Money in the Stock Market During the the Economic Crisis and Profit from the Recession?

Using some kind of secret in the economy or on the Stock Market

John answers:

No secrets here:
Mining stocks, Physical metals & Open a forex account

Ken asks…

How to Make Money in the Stock Market During the the Economic Crisis and Profit from the Recession?

How to Make Money in the Stock Market During the the Economic Crisis and Profit from the Recession?

Using some kind of secret in the economy or on the Stock Market

John answers:

Warren Buffet’s Two Core Investing Principles:

1) Having a diversified portfolio of profitable businesses is the best way to protect and enhance long-term wealth.

2) The best time to buy is when the majority of investors are despondently selling.

Hope this helps :] Remember to do a lot of research before you invest your money anywhere!

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