Your Questions About Money Making Stocks

Laura asks…

Ways To Make Money With Stock Market?

I’m 13 years old, have $5,000 of my own money in stock market for long term. I might take out a few stocks and I will have about $4,000 to invest with because of other money I have. What things should I invest in that are safe (meaning not day trading) yet still make money quickly
I would also like a place to visit on investing so I can keep learning about it.

John answers:

I would say invest 2000$ in a food giant like coke or netle because the cost of food is only going to rise for the next ten years but choose a company you think will be stable , you do not want any wild cards were you could lose money stop&shop is a good one . Do not be trading your stock with frenquency long term works out for the best.

Another good investment is guns now i do not mean go to your local gun&ammo store and buy a few uzis and sell the for double on the street no thats a bad idea . What you want do is invest the remaing 2000$ in a small weapons manufacturing company one that has cheap stocks yet a good forseabel fiscal future such as a company like stagarms .

The demand for guns and ammo is very high since barrack obama took office, because the general population of gun owners believe that like the bill clinton administation the obama administation will reinstate asault weapons bans that were put in place by the last democratic administartion. These fears will cause a rise the in buying of guns and as you you will learn in the investment world when the demand gose high the price followsuit …. By Daniel Christiansen

David asks…

is it easy to make money off the stock market?

what if i just buy stock off an already successful company would money come back easy?

John answers:

First off stock is a representation of ownership in a business. Therefore if the business sucks, then the stock will suck. The key is finding good companies to invest in. This requires you to have some knowledge of how business works including understanding the financial statements.

The other thing that you need to understand is that the ways you make money from stock is through capital gains and dividends. Investing for capital gains requires you to invest in a company with the anticipation that the stock will appreciate in value over time (similar to the value of a house). Investing for dividends is finding a company that pays out dividends consistently year end and year out. A lot of people, including myself, overlook dividend investing. But dividend investing can provide you with instant income and you can reinvest this income for more stock.

While the income that you can make from dividend investing is not glamourous at first over time it can really add up. I just finished reading a book called Income Investing Secrets, which I will include a link to in the source box, that showed the results of investing in Phillip Morris (now Altria) the makers of the Marlboro cigarrette brand.

If you had invested in 200 shares of Phillip Morris in 1986 (initial cost of $14,700) and reinvested all of the dividends your dividend income in 2006 would be $20,000. This is passive income that would be coming to you on a yearly basis or you could reinvest the $20,000 in more stock. Not to mention your shares would be worth over $483,000. Powerful.

So is it easy to make money from the stock market? Over time investing in the right companies and it also depends on your investment strategy.

Also remember that stock in a company is always worth something as long as the company is still in business.

If you want to learn more about stock market investing check out http://www.howtobeastockmarketplayer.com

Also check out the book “Income Investing Secrets” at
http://www.howtobeastockmarketplayer.com/recommends/investforincome

Lisa asks…

how do i get the money i make from stocks in my hands?

ok so say for instance i buy a few shares of stock with microsoft…or whatever company i prefer.
let it sit for a while…..how do i actually get the money back?
do they mail it to me?….do i have to sale it to someone else….? do i have to let them know i want my money or do they offer to send it yearly?
i know in some cases they wont send your money as a dividend….and that they might re-invest it again.

i know alot about stocks. but this is the part im always confused about…

please give me answers to my questions….and not a long summary of some other stuff….thanks 🙂

John answers:

If you want the money from the stock first you have to sell the shares. You will have to wait 3 days for the trade to settle. It will be deposited in your account with your broker. Then request a check from your broker or direct deposit the money in your bank account. If your stocks pay dividends they are deposited in your account, unless you’re in a dividend reinvestment plan.

William asks…

is the way you make money on the stock market ?

is the way you make money on the stock market is to buy a stock cheap then sell high ??
if so is there any trade fees or taxes involved?

John answers:

In the USA fees way widely. You need to get a low cost account from Schwab, ScottTrade or others. This will minimize trading fees. I like Schwab myself but there are plenty of other good companies.

Your profits are also taxed unless you trade within an IRA account and then you only pay tax when you get the money out. I do all my trading within an IRA.

Knowledge is the best way to make profits. You can’t trust anyone wholeheartedly. All brokers and financial analysists make mistakes.

In my opinion, the best way to make money is to sell loosers quick and sell winners before they decrease in value. That requires experience.

Start small and safe and progress to large and safe when you have experience. I would advise you to buy and sell “no load” mutual funds for safety and to minimize fees.

For me the best way to make money in the stock market is to buy and sell mutual funds that are in a rising market sector. Right now one sector that is rising is gold and precious metals.

You can go to Yahoo Finance and research mutual funds, etf’s and stocks. They have easy to read graphs of past performance. For example you can go there and research the ticker symbol UNWPX and see that this mutual fund that deals in precious metals has been averaging pretty good returns lately.

Remember that the best way to preserve your value is to cut your losses quickly. Let yourself make mistakes. Just sell quick so they are not big mistakes. Some people that I know sold all their stocks when the stock market began going down in 2007. That proved to be a very smart move.

Ok, I don’t know what’s up with the thumbs down. I don’t claim to be a genius but I’ve gained 24% in precious metals since July. If that’s thumbs down performance, then you are not in touch with reality.

Richard asks…

What strategy would you take to make money in the stock market today?

This is assuming the current state of the economy. You have between now and May 1 to invest a sum of money. What companies would you invest in and why? What sectors? Money must be invested in stocks with the primary goal in capital gain.

John answers:

I’m investing in 1 long shot for gain only, not long term hold.
It’s a pink sheet stock. (Risky)
Symbol: CCTC $23.25 per share at the close today.
I purchased on 12-20-07 at $18.50 per share.
Up $4.75 per share in less than 1 month.
It’s a company that can make coal 85% clean burning.
It’s been awarded a large contract in China recently.
Nothing in the US for the company though.
Peabody Coal Compnay in the US is working on this technology but so far I believe they make coal only 45% clean burning.
I figure that any company that has a process to reduce coal emmissions in the air by 85% is worth a shot. Many people do not realize how much coal is used to provide energy for us.
It’s a gamble I’m comfortable in taking.

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