Your Questions About Quick Money Making Stocks

Maria asks…

What do you think about investing in stocks as a beginner?

I think the stock market can be a smart thing to experiment in even without much experience, in contrast to most advice given. My reasoning is that you can “practice” picking stocks for a very small amount of money– even under $100. You can buy just 1 stock option and though you won’t make much, you won’t lose much either and you’ll have experience of watching the market. Sure you can argue that you can study the market without putting your money into it, but I think having something on the line- even if it is only a $20 stock option- keeps your attention and diligence. I am inexperienced with stock trading- it’s been years since I’ve owned stock- but I’m smart, I have a financial mind, and I am a quick study. I think I want to take a few hundred dollars and spread it over a handful of well-picked stocks and watch it for a few months to see what happens. Maybe I’ll make a profit, maybe I won’t. But I’m not risking much. If you disagree, please explain your logic. Thank you!
what do you think about zecco.com?

John answers:

Oh! I agree… I found that it is an excellent, even fantastic< way to profitably spend your time. As you say, if you get in just a little…it's great experience ( and always something to " click over to" on the computer.
If you're into the " practice" part of it , a guy ( who occasionally answers here) has a nice site at:
http://www.top10traders.com/
Great place to see " how you can do" and look at the way about 1200 other traders play the game!
Good luck.
P.S. Correction: up to 1300 traders, now.

Michael asks…

Im new at buying stocks. Help?

Hello
Im thinking about investing in GeoGlobal Resources Inc. I’m interested because their stock is low and seem to be starting to go up in value, plus since i could buy a lot of shares if the price goes up a few cents i could make some fast money. This stock has been doing somewhat well throwout last week. I don’t have allot on the line, I have 3k nothing i would die over if i lost. What are your ideas? Is the quick gain a good idea?

I’m interested in internet trading, i was looking at Ameritrade because of their $10 commission fees. And because they offered me a 30 day free of commission when i start. What company do you think i should sign up with?

My main goal is to learn about the stock market, i want to get hand on experience, making a few dollars on the way would be nice.

John answers:

No buy, sell or hold recommendations.

TRUTH: I JUST checked the chart for GGR. THE highest that stock has EVER been is $14.94 in Jan. ’06.

Since then its overall trend is declining. Yes, the stock has gone up the past 3 days. BUT overall, its going down.

Now for the answers to your Qs:
Your reasoning is no different than about 85% fo the folks trading stock.

One of the most common mistakes traders make: They buy the shares and rarely check what the stock is doing.
Some of the many sayings I learned:
1] “On Wall Street, there aren’t any gifts”
2] “Trees don’t grow to Heaven – neither do stocks.”
3] Bulls (Buyers) earn money.
Bears (Sellers) earn money.
Pigs get fat.
Hogs (greedy traders) get slaughtered. (They lose the money in their trading accounts.)

There are many others. Most of them are very true.

Its up to you which Internet broker you will decide to open your account with. You have to do your homework and investigate. Inexpensive commissions do not necessarily mena you will get the kind of information you need to make intelligent trades.

IF your main goal is to learn about the stock market, you can open a virtual trading account with many different brokers and learn how to properly trade using a [paper trading or pretend trading program.

Two sites I always suggest wannabe traders to visit AND READ are investopedia.com AND yahoofinance.com.
Both of these are considered “knowledge contributors” on Y! A.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

William asks…

What is the best place to sell stock pictures for some quick cash?

I have 405 pictures of random things i have taken over the past few years and wish to make some extra money by selling them. Please help

John answers:

Stock images are a long term investment in time and effort, definitely not quick cash.

Http://www.ozimages.com.au/PWS.asp?MemberID=2609

John asks…

Quick overview of stock options?

I’ve been sitting on my stock option paperwork because I don’t really know what it all means. Now corporate wants it and I still have no clue what I’m signing. So, what am I signing? It’s been explained as if we’re bought by a public company, I could make a bunch of money. Do I buy the stock now? I think they asked for a check and I’m kinda confused how I buy stock that doesn’t exist yet. What if I leave the company before we’re bought? Do I still get stock? Any quick overview would be very helpful! Thanks.

John answers:

Stock options give you the right — but not the obligation — to buy stock at a fixed price. It generally has an expiration date — so if you don’t decide to go ahead and buy the stock — it expires worthless. There is usually no advantage in doing the purchase until you are near the expiration date — unless the stock has appreciated & you want to sell the stock.

There are two types of stock options — qualified (part of a plan that everyone gets) and nonqualified. If they are nonqualified, then you have to pay ordinary income taxes on the difference between what you pay & what it is worth. If the company is pre-IPO, then there is a tax advantage to exercising the options before IPO.

If they want money from you — that probably means that they want you to exercise those options now. You may be close to the expiration date. If the optinos are worth something, you should not let them expire. Ask them what the fair market value is of the stock. If it is greater than the strike price (that is the price you have to pay per share) — then buy them.

One problem you will have is that your company isn’t public yet. Ask them when you are likely to be able to sell the shares. If you can’t afford to hold on to the shares until then — then you should do one of two things — either let the options expire — or find someone (possibly in the company) who will buy the shares from you if you exercise.

You ask about buying stock that doesn’t exist. Just because a company isn’t public doesn’t mean it doesn’t have stock. It just means that there is no public market for the stock. Private markets still exist.

Donald asks…

Can you turn investing (stocks) into a career?

All my life I have been interested in money. Even in games I would buy and sell stuff for profit, and my mind just totally works around that idea.

I am a senior in high school, and I am making all those “quick (but important) decisions.” What I keep stumbling on is what career do I want.

John answers:

There are many choices of careers in the financial field.

Investment Representative – needs little or no education and training provided by bank or investment firm. You would sell the mutual funds, bonds, and stocks recommended by the research division of the company you work for.

Financial planner – would require college or university education. Might also require training and experience. You would invest other people’s money in stocks/bonds/etfs, etc of your choice.

Investor – Invest your own money in whatever you choose. There are ways to make money in the stock market regardless of whether the market is going up, down or sideways. This would require training as money can be lost very quickly if you do not know what and why you are buying and selling.

Are there any career fairs held in your town? Visit them and speak to the representatives from the banks or other financial firms. If this is not available, phone one or more of the banks or investment firms, explain that you would like to speak to an investment rep and why, and most would be happy to speak to you about education requirements and whether those should be followed through college or “apprenticeship”. Many companies have training programs and would be happy to hire you with little more than interest in the field.

This would be a great career choice as there are a large number of people who are reaching the age where they are planning retirement. They will need advice on how to make their money grow and provide an income through their non-working years. There are also many young people who want to make their money work for them but do not have the expertise to make their own decisions.

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