Your Questions About Money Making Stocks To Buy

Daniel asks…

I have a question about stocks and investing in them?

I have read an article from, and it said that I should start buying a company’s stock and not their product. So, how can I make money from stocks? Do I only make money from selling them? If I were to buy stocks or whatever method of investing, I want to make money when ever they are making money.

John answers:

Stocks can go up because the company is making money or in anticipation of them making money. They can go down if the company is making a ton of money… But not as much as the market would expect them to make money. If there’s a war in the Middle East, your stock can go down even if it’s still making money. There are a million plus reasons why stocks go up or down. Stocks are purchased in a market place (stock market). The price is determined through supply and demand. The price can change every nano second. When you sell the shares you will lock in either a profit or loss. Any other stock price action is simply on paper.

George asks…

What stocks should I buy in this depressed market so i can make a lot of money really fast?

I keep getting all this spam to invest, but I think its the pyramid thing looking for panicky people to hook. Are there any tips or common sense things to do. I would like to hear from someone who might be willing to share a good tip.

John answers:

It is good that you are thinking about investing. If you left your money in a savings account, the money would lose value with inflation and little interest. I suggest you buy stock in the company that is getting ready to sell the TV converters before that stock gets to be too expensive. Everyone will need them in february of 2009 and it is best to buy it now and hold on to it. Buying stock from exxon mobil would be pretty risky. Depending on who our president is, the gas prices will go up or down. I think it is probably okay to invest in it for now. Do not try to put money into walmart over the summer. Usually their stock goes up with the holidays and such… Um. CDs are good if you are not planning on touching any of your money. I know people who invest in johnson and johnson because it is pretty stable. Hmmm…

Buy land. Everything is getting developed now (especially where i live). If you buy some land near a town/city and just hold on to it, you can get a lot of money from desperate developers. The good thing about that is: it is a buyers’ market. The bad thing is: you have to keep it for a while. Your call.

You can typically research which companies are getting ready to come out with a new product. For example, if apple came out with a car (which they aren’t) that was fully loaded and was projected to come out in march 2009, i would hold on to stock because it is almost sure to rise in march of 2009.

Investing is a game though. Good luck!

Thomas asks…

How is it possible to make money buy selling online, using sites like ebay?

Taking into account the cost of purchasing stock to sell on a site like ebay, then the percentage the site takes from final sale, the fee a site like Paypal takes per transaction and then the taxes you would have to pay as a registered company, I am having difficulty in working out how its possible to make a serious living from doing this.

Has anyone got any experience they could share, good or bad, in this matter?

John answers:

All businesses are the same

you buy something for a price (A)
you sell it for a price (C)
in between you have expenses (B)

If C is greater than A+B you have made a profit
If it aint then you have made a loss

All you got to do is work out what B is (and all the expenses can be calculated including postage (you just pack the item up, take it to the post office and ask how much it would cost to send)

The only other factors are A- but you can change this by buying in quantity
and C – but this can only be varied within limits- its no use trying to charge 2x as much as others are charging for the same or similar thing

(the BIG thing to remember when buying in quantity is – you do not make a profit on each item.
You only start to make a profit when you have sold enough to cover the cost of buying the original quantity
i.e if it costs £100 to buy 100 items and you sell them for £2 each, then you have to sell 50 to break even. Your profit comes from the second 50
IF you can only sell 49 then you will make a loss. Its no use to you saying you have made £1 profit on the 49 you have sold. You laid out £100 but only got £98 back, the remaining 51 items are junk

Laura asks…

How do people lose money in stocks?

It doesnt make sense. If you buy stocks for a certain price and the price goes down, why would you sell it. Cant you just hold on to the stock you bought till the price get to higher than what you purchased it.

I really dont know much about stocks please help me.

John answers:

Let’s look at some stocks and their prices:

Polaroid – stock price has been ZERO for some time.
US Steel – stock price has been ZERO for some time.

… I think you get the idea

Betty asks…

How does a teen get started in buying stocks?

I’m 15 yrs old and im interested in buying stocks to make some money. Where do I start? What do I buy? Please teach me how and what to do!!

John answers:

Im interested

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