Your Questions About Quick Money Making Stocks

Donna asks…

Does your success at the stock market depend on how well the business you invest in does?

I heard one person explain that the WORSE your company does the more money you make. Is this true? Or is it the other way around?

John answers:

It depends what decisions you make.

If you buy the stock, then obviously you’ll make money if the company does well.

If you sell short, then you’ll make money while the company falls apart.

Yes, this is possible. You can make money both ways. You just have to know which way the stock is going to go.

First, you have to decide whether the company will be successful or failure. If you think it will be a success, then buy it. If you think it will be a failure, then sell short or buy put options. Selling short and trading options is riskier than just buying the stock, but if you understand what you’re doing, the rewards can be quicker and greater.

Someone asked earlier, “What is short selling and how does it work?” You may want to read my answer:
http://answers.yahoo.com/question/index;_ylt=AroWo6ghbWp8e7uW9vclL6bty6IX?qid=20070411125335AAF8PlH&show=7#profile-info-AA11532918

Some people buy the stock and buy “insurance.” The insurance is a put option. The put option is like a bet or a lottery ticket. It can become extremely valuable if the stock goes down, but it expires worthless if the stock goes up. So, if your stock goes up, you paid for the insurance, and you didn’t need it. But if your stock goes down and you lose money, then your ticket is a winner, and you win a lot of money. If you did everything right, then the amount of money you win is more than the amount you lost in the stock. So, it doesn’t matter which way the stock goes. If it goes up, you make money. If it goes down, you make money.

Now, if you don’t buy the stock, but you buy the put option, then what happens? If the stock goes up, the option is worthless. If the stock goes down within a certain time, then you can sell the put option and make a lot of money. You make money only if the stock goes down. If the stock goes up, you lose the amount of money you paid for the insurance. So, the worse the company does, the more money you make.

Note: Buying put options (insurance) and selling short are two totally different things.

Mary asks…

What is the best website for first time stock trading?

I’m trying to start stock trading. I’m 20 years old and I was hoping to get some tips on how to start.
My plan was to start out with 50 dollars, buy some 1 dollar stocks, once they grow a little sell them for a quick profit. Keep doing that to make money to start getting into the bigger stocks.
Is this a good idea? If so please give me tips and pointing me to the right website would be great. Thanks.

John answers:

I don’t know of any broker that will let you start out with $50. You are simply not worth the paperwork. Tho some do have a $500 minimum, but most are more than that.

Also at $4.95 a trade, how long do you think you’ll last losing 20% of you investable money every round-trip trade?? Come back when you have at least a thousand.

Ken asks…

What is a fast way to make money in runescape?

I need a quick way to get money on runescape and I don’t know how. Here are my major stats:

Attack:40,Strength:35,Defense:35,Health:40,Magic:43

Plz help! I am broke!

John answers:

U should kill hill giants and save the limpurt roots and b bones in the bank.

Then when u stock up, u can sell it at the grand exchange

i earned 80k in 2 days by this method

Susan asks…

Should I invest in the oil companies, so I can get me a share of those record breaking profits?

During these hard economic times, many people are looking for an “easy” way to “make their money make money.” So, could this be the way to go? Would investing in oil companies be an easy way to make some quick cash? Please share you reasons why or why this would not be a good idea.

Thank you.

John answers:

Hello,
If you are looking forward for short term investment then going for oil, energy n power sector is a good option.

But if you investment perceptive is for long run then it would be better going for balanced portfolio that is, picking up both risky and less risky stock in order to nullify or minimize risk.

If you are looking for record breaking profit as you said then i must suggest you to try forex.

Linda asks…

What is the best way to make money on runescape?

I want a quick option like buying and selling, but what should i buy and what should i sell?

John answers:

There are many ways to make money on Runescape. I personally like to choose methods that are low risk. I have many methods, which have been tried and tested listed on my website: http://runeriches.com/

There are 2 methods which can be done every 24hrs, each day I make 350,000 in about 10 miniutes by doing this.

Firstly go to the low level slayer master and purchase all Broad Arrowheads and Unfinished Broad Bolts then head to the high level slayer master and purchase all Broad Arrowheads and Unfinished Broad Bolts from him. This will cost in total from both slayer masters shops 288,774 sell on these on the grand exchange to make about 300,000 profit there stock will take 24 hours to regenerate.
Http://runeriches.com/money-making-skill…

Secondly buy all battle staffs from Naff’s Knockoff Staves shop. He will sell you battlestaves for 7,000 coins each and these can be sold on the grand exchange 7,695 each. Depending on how many Varrock achievment diary tasks you have completed will depend on how many battlestaffs Naff will sell you every 24 hours. I have completed the elite tasks and make 55,600 each day on this.
Http://runeriches.com/money-making-skill…

Finally a method for during the day. One of my many methods I recommend is running Golden Scarabs, Golden Scarabs can be purchased from the Grand exchange for 600 gold and traded with the NPC Simon Templeton for 1000g each. If you have access to the bank in Sophanem (requires completion of the quest Contact) then each tip will take under 4 minutes, there and back!? Golden Scarabs can be also be carried by a Summon increasing the amount made per trip.
Http://runeriches.com/money-making-skill…

Luke Samuels
http://runeriches.com/

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