Your Questions About Great Money Making Stocks

Sharon asks…

I have a question about stocks and the market. New guy and I make money..?

I am super new to the game. I started with Scottrade with 10k .. 7 bucks a trade.. They seemed shocked and or judged me when I slapped my 10k cashier check down. I got into NFLX when it was at 72.. up and down caused me to lose about 600.. I got out.. I heard it was going to hit 150 .. So it did great and went back to 100 at one point. I had to get out because it was too much risk as far as it could of lost a bunch. I have been watching WEN.. BAC. then I heard of SHLD and seen it drop to less then 30 a share and wanted to get in but was scared it could drop lower after the 120 store closer. Now SHLD jumped to over 50 a share.. I know I lost. I lost on NFLX..I know. I lost on BAC.. I have been told one thing from my father which is not in the stock market at all. He said “stay away from government stocks“.. I jumped into GLW and it brought me back out of a loss and into a positive of ..lets say 10,600 for now. How does this work.. I see it jumps up and people sell.. I can easily buy and sell this stock GLW.. each day for a profit. most the time. However I did it one time and I got a call from Scottrade and they said I got 1 mark for trading without settling funds. Something about 3 days.. Then I asked how do I buy and sell whenever I want.. I want to know how to Buy and sell that same day and do it over and over again. Day after day.. I think they told me if I put another 10k into it I could trade/buy/sell as much as I want. Should I be somewhere else or is there a company that is better.????

John answers:

Look when you trade you have a settlement date for your cash. When you sell the stock, you have to wait a few days for the funds to settle. That’s just how it works, so whatever money you used to buy and sell the stock with, that money is tied up for 3 days before you can use it again. If you have money in your account which you didn’t use to buy any stocks with, you can always use that money. That’s what they mean by adding another $10,000 in your account. If you want to use the funds within 3 days after a sale, then either add more money to your account or invest less each time so you have some money left to cover the settlement period. If you buy $2,000 worth of GLW, then you have $8,000 left in your account. So once you sell GLW, the $2,000 you used to buy it with will have to settle so you can’t use that $2,000 for 3 days. But you can always use the $8,000 since it’s free cash and was never used to buy the stock.

As far as day trading (buying and selling each day for a profit), I did that when I first started trading and I was really good at it, but then tax time came around the next year and I got screwed. Keep in mind that you’re paying so much more in taxes when you buy and sell stocks without holding them for at least a year. There’s other things you should look into about it, just look up “downsides of day trading” or something like that.

As far as the types of stocks you pick, it sounds like you don’t have the gut for taking risks. Either you don’t have patience or you’re just too nervous, which is more of what it sounds like. In that case I would diversify and focus on stocks that have a lot of age to them and stocks that are gradually rising each year but not so fast that it causes a lot of ups and downs (volatility). Just stocks that seem somewhat dependable over a long period of time (longer than 4 years). There’s a lot of stocks out there that are both relatively safe and still profitable each year. If you spread out your money and divide it up into a few different dependable companies and one of them fails, the winnings from the others that didn’t fail should cover the loss so you don’t have to worry so much if one drops and you can have the patience to wait it out. Since they’re all dependable companies and all in different industries, the likelihood of more than 1 failing is not likely. I think what you’re doing is not going to be profitable in the long run because you’re taking too many risks and even if you do great most of the time and have a knack for picking winners, the losers here and there will cancel out any winnings you have, and day trading further complicates it because then your earnings are being taxed at twice as much or more.

Sandy asks…

What do you need to know to make $ in the stock market?

im 20 yrs old, and i’m pretty interested in the stock market, since my uncle makes money from it, and seems interesting…so im not really familiar with it, so like i just want to know what you need to know, like patterns you study, who you talk to, and what knowledge you have to know or even what classes are recommended in college to learn how to do stocks…THANKS! oh by the way, im not that great at math, so do i have to be?

John answers:

Hello friend , now days there are number of stock market site. Which provide you stock tips but as a fresher you have to choose which site is batter the one who will help you so I can recommend you:
http://tinyurl.com/79nlveb as this is the same site which i am using for getting helpful information.

Mark asks…

What should I invest in with low amount of money?

Hi,

I have around $4,000 that I am trying to invest and make a profit

I want a quick profit. A month or so hopefully less

I am only 16 and not sure how to buy stocks

I need great ideas to make some what of a good profit for a new car

Please help me out

Also, if you are good with stocks and would like to help me for free, email me

John answers:

I started trading shares when I was 16 but did it in my older brothers name because I wasn’t old enough to open an account. (Something you may want to double check in your country). I made money in the GFC because of the massive bargin prices things were at. Right now I wouldnt get into the sharemarket its really going no where and very unpredicatble, I would probably have more luck at the casino. Also a month is a really short timeframe and no one would reccomend to make a profit in less than a month on the sharemarket. Like I said if you pull out in a month it would be so unpredictable that its better off going all in playing blackjack or something. 2 years is considered short term. But if you do want to gamble, search up companies on your countrys exchange website, check the performance charts, read announcements, then read newspaper articles on the company. Avoid mediocre performance companies because you’ll probably make a loss because of the brokerage fees youll be paying. You have to make enough money to cover those fees so search up high profit companies, and go all in on one company. People will tell you dont put all your eggs in one basket, but with only 4k and a timeframe of one month you dont have a choice it really turns into gambling with this type of mentality.

James asks…

Would you respect a 18 years old guy making 10 Grand in one year ?

Im a 18 years old investor, And I’m on my way to make 10.000 Dollars at the end of the year.
Im obsessed with money, So I’m good at it. I invest in stocks, As a long term investment, And as a daily trade swinger. Anyways is it good for a 18 years old student making 10 Grand in one year ?
Would that be a great beginning of success in my career/future life ?

John answers:

If you are 18 and are on your way to make 10 G’s you are a baller. I posit that by 28 you will be making 10 G’s a week. This is most certainly lead you to success financially. By 50 you will be a multi-millionaire if not a billionaire. Your obsession with money however will only lead to a gradual realization that while your money has sugar coated your emotions for years you have become void of any significant relation in life besides the accumulation of wealth. That said you will most def be a BALLLLLER.

Steven asks…

What are the best stocks to start investing in if you’re a BEGINNER, and don’t want to lose a lot of money?

I would like to save for retirement. I’d also like to have an investment or CD that I’ve saved and will be able to borrow from in case of an emergency later. However, I am starting very late. I’m in my middle 50’s. I’m starting a great new job soon that has a matching 401k plan. However, I have no idea what’s the best way to save a lot of money in it, since I need to catch up and save faster than most. Also, I don’t know whether to invest in an IRA or a CD and how much I need to save for retirement? I will be making at least $600.00 bi-wkly PLUS COMMISSION. My expenses per month are approximately $1000.00 How can I utilize the money I will be making in the best possible manner? I know there are some qualified experts out there that are great people that would be willing to advise me. I seek your assistance, sincerely I do. I appreciate your guidance and thank-you kindly in advance.

John answers:

This is my advice: don’t do it! The mere fact that you aresaying you need to catch up worries me. If anything this is what I would do. Think about Index linked Government or corporate bonds. In these sort of markets you possibly want a portfolio comprising 30-40% shortish dated bonds (investment grade), 10% cash and 50% equities: good quality, high yielding companies. Companies which make/sell products always in demand like persona/home hygeine, Food manufactureetc. Companies with good earnings growth records, good management. And strong cash flow and Cash position. You really need to take sound, professional advice. If you were in UK I would say stockbroker but US i am not sure (I am told stockbrokers aren’t all that bright!)

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