Your Questions About Money Making Stocks To Buy

Robert asks…

How a young teen can make money in the stock market?

Can I get a few tips for buying and selling stocks? I don’t want to make a big mistake and mess everything up. Also, is the market currently up or down and what are some great stocks to buy? The ones that will make the most money? I use e*trade btw. Thanks(:

John answers:

Legally, you need to be 18 years of age to trade in the stock market. Unless your father/mother trust you enough to let you choose which stocks they purchase through their accounts, you are better of doing some small ventures and working your creativity at this age. Think of anything, and establish it.

Lisa asks…

Can you make a lot of money buying yahoo stock?

Also do people buy and sell stocks for a living? Do they just wake up in the morning and decide to go to work just by buying and selling stocks?

John answers:

You don’t make money buying stock, you make money when you sell it for a higher price than you bought it.

The second part of your question is referring to daytraders. Daytraders get burned. Invest for the long term.

Linda asks…

Where can I get information about daily put and call volume on a stock?

Apparently, the folks making the money on stocks are buying puts and calls and then buying or selling the stock in large volumes to make those options pay off. I need to learn to pay attention to those patterns. Thanks.

John answers:

See related exchange site
india > nseindia.com

Helen asks…

How can I make money monthly on my investments?

I want to invest my money and instead of it sitting in my account accruing interest, I want to have access to the interest that I am making off my money. Is there such a thing? I can’t touch my 401 K or my IRA and I have a savings account that pays 5%. But is there anything out there aside from stocks (buying low and selling high) that would allow me to generate a little money on a monthly basis?

John answers:

Look into the REIT’s as someone else mentioned….or Canadian Royal Trusts (a little ” shaky” right now because of some politics)
If you go to http://www.investorvillage.com
…you can look up either one of those …just type in REIT’s, or CANROYS…in the “symbol” box and it’ll take you to a board full of very knowledgeable investors….you’ll have to “register” to ask a question, but it’s a nice site to have for future references
Ask about “monthly” dividends…there are plenty!
Oops! There is also a board for ” dividend investing” there…
….and also ask about MLP’s….another type of investment that deposits your dividend in your “cash” account.
Don’t be shy…most of the people at that particular site are very gracious to “newbies”
Best of luck.
Oh! To get the whole thing going you’ll have to go to a broker..like E-trade ( everything on-line)…set up an account, and then buy
whatever type investment you want… ( it’s not hard or even complicated)

John asks…

What happens after i buy my call option?

So after i but my option and buy the contracts what happens afterward. Do i need to have the stocks to buy a call option? How do i make money after i buy it. I go to my broker and say what?

John answers:

After you buy your call option, one of 3 things can happen:

1. Stock goes up and your call options gain in value resulting in a profit. At this point, you could simply sell to close your call options for the profit without need to buy the underlying stock at all. You could do this anytime before expiration.

2. Stock goes down and your call options depreciate for a loss. At this point, you could choose to also sell to close your call options to limit the losses you sustain before expiration or hold on all the way to expiration to see if the stock comes back up. If it does, very likely the call options would expire worthless if the strike price is higher than the stock price by expiration.

3. Stock remains stagnant and your call options continue to depreciate for a loss. This is known as time decay. You could do the same thing as in option 2.

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