Your Questions About Money Making Stocks To Buy

William asks…

How do you calculate profit from stocks?

I want to buy stocks but Im not sure how you make money from it. I know in the forex market it is pips movement but in the stock market I don’t know how it is.

John answers:

The price you sell – price you bought + commissions = profit.

Sandra asks…

Can you open stock account like e trade starting with 500 dollar and make profit from buying stocks?

Can you open stock account like e trade starting with 500 dollar and make profit from buying stocks.How you long will it take you make some profit starting from 500 dollars.

John answers:

Once you open an account you can basically start investing in stock immediately. It would cost you commission to buy and trade stock so I recommend you try to diversify as little as possible. If the $500 is all you have I wouldn’t invest in stock. Try bonds or CDs. Also not all people that invest make money. You could lose all that money or make a lot. Depending on which stock you choose, how they do, and part luck. Best of luck! Hope I helped! Please mark as best answer if it is. Any other questions feel free to message me. Tyler

Helen asks…

How do stock buying and selling work?

I dont understand the system of buying and selling stocks, how do you make money?
thank you

John answers:

There are two ways to make money from stocks….

1/ Capital Gain – eg: you buy 1000 shares of a stock at say $20 costing $20 x 1000 = $20,000 + costs

The price goes up to $25…you sell and get back $25 x 1000 = $25,000 – costs

Your capital gain (profit) is $25,000 – $20,000 – costs = $5,000 – costs

2/ The other way to make money is to hold long term for the dividend payments. Most profitable companies pay dividends to stock holders as a means of distributing a share of the company’s profits to them.

Jenny asks…

Insider Trading? If a guy’s wife works at a place can he buy stock in the product that her company makes?

The product is new and it is on the stock market at a very low price. It will probably make money. Can he buy stock now and not get accused of insider trading when it goes way up?

John answers:

Definition of insider trading from SEC website:

“Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include “tipping” such information, securities trading by the person “tipped,” and securities trading by those who misappropriate such information.”

It sounds to me as if you are referring to a shrewd investment, not insider trading.
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Mandy asks…

How everyday cash is made in the stock market?

I understand the basics of the stock market buying shares and bonds etc then selling them. One of the basic ways of generating income from the stocks. Also understand certain companies pay dividends at certain times of the year another way in which you can generate income from investing. I’m sure there are multiple other ways which I’m not aware of, so hopefully you can help me out. I’m basically asking is it possible to invest in the stock market so well to the extent that you don’t work anymore just retired and relaxing at home? If so where do most people get their money for basic living in such situations, because surely they have to be making money some how and I’m pretty sure they not selling stocks everytime they do? Or its just entire lifes savings?

Thanks for you answering.

John answers:

Trading or investing on the level to substitute a full time job is possible. Generally it takes 3-5 years to get to that point and 50-60 hour weeks will be the norm. Most fail at this en-devour.

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