Your Questions About Money Making Stocks

Jenny asks…

1. How to make money with penny stocks?

Is it really possible to make money with penny stocks.Can you refer me to a decent website that will show me how?

John answers:

Four strategy:
1)Fundamental Analysis
2)Undervalued Stocks
3)Technical Analysis
4)Promotional Stocks

Read the detail here:
4 Ways to Make Money from Penny Stock
http://www.stock-investment-made-easy.com/penny-stock-investing.html

Mark asks…

How much money do you acually make from stocks?

So i guess u can categorize me as a beginner, i know this is a stupid question but i wanted to ask before i start an investment. To begin, do u actually recieve money a month or annually? Also, if i bought i apple stock, how much money can i expect if 1 stock is worth about $120? Thanx

John answers:

You only “receive” money if you sell a stock or if it pays a dividend. For your example of Apple, they do not pay a dividend, so the ONLY time you will receive any money is when you sell your 1 share. How much money to “expect” is up to the share price when you sell. It is 100% possible that you will not make any money at all, but actually LOSE money.

Michael asks…

Is it almost impossible to make money in stocks if you’re a little guy?

I’m a little guy, dumping a few thousand into stocks. But realistically, I don’t see how I’d get much of a return unless that stock splits. If I have a hundred shares of Verizon, for example. 5 years from now with div reinvest, I’ll probably be lucky to have 110 shares. Really, can a little guy with a few thousand in stocks make much money unless there’s a stock split?

John answers:

There is nothing wrong with being a little guy in the stock world.

You have no idea what will happen 5 years from no….simply dumping money into any stock and crossing your fingers is not investing.

Stock splitting (forward splits) is not generally a bad thing but the split in itself does not make you money though with time the share price usually rises…..but the fact is you are :

1. Not playing with a lot of money….say $10,000 will not make you a fortune…doubling it every year…which would be an incredible feat…

Nothing to do with being a little guy…it is just that you are not investing much money.

2. You have little or no knowledge on how to invest money that you do have to invest.

Whinging that you cannot make any money and the odds are against you gets you nowhere. Learn how to save money and how to invest it and overtime you will come out ahead

John asks…

how do you make money from employee stock purchase plan?

My job offers ESPP, and i know nothing about stock wanted more info

John answers:

Each company has slightly different details for how their employee stock purchase plan (ESPP) works, so be sure to read your company’s plan.

In general, when you enroll, you tell the program what percentage of your paycheck you wish to set aside to eventually purchase the stock. The maximum is usually 10%. At the end of the period, usually 6 months, the money in your ESPP account is then used to purchase the company’s stock – but you get a 15% discount. For instance, if your company’s stock is at $10/share, under the ESPP, you would purchase it for $8.50 a share.

The easiest way to make money on the ESPP is to simply sell the shares as soon as you’ve bought them. You can arrange this with the broker that handles your company’s ESPP, and is called a same day sale. You’re guaranteed to make about 15% profit on your money, since you’re always buying the stock at at 15% discount. So, if the company’s stock is $10/share, you pay $8.50 a share – but sell it for $10/share. Your profit is $1.50/share, but then you pay taxes on this, so in reality your profit after taxes is closer to $1.00 a share.

You don’t have to sell the stock, however. You can hold onto it, if you think the price will go even higher. Most folks just take the immediate profit though, as that’s a guaranteed thing.

Richard asks…

How do you make money from the stock market?

I am using a stock simulator and need to get money quickly but this stock market issue is hurting me.

John answers:

Hello,

I traded stocks for a number of years. It is very hard to make money out of the stockmarket as it goes against what people naturally do. A stock market simulator/trading system is a useful tool but it’s the human ability to know when to enter and exit a trade that makes this an art. Some people are instinctively good traders. Following a system is good in theory but people often override it and end up in big losing positions. The whole game is all about minimising drawdown and maximising winning trades. Also you have to be able to take losing several times in a row before you get a winning trade. It’s real money and emotions come into the equation.

There are easiers ways of making money online ( affiliate marketing for one )

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