Your Questions About Quick Money Making Stocks

Richard asks…

who should i buy stock in to make quick money?

I want to learn how to trade in the stock market. Should I take a tutorial on E-Trade? Is there something else I can learn from? What stocks allow you to turn around quick money if any?

John answers:

To Start Investing
It takes a long time to learn the stock market and it would help if you read some books from your library and information online. It would also help if you did some practice trading with play money. You can do this by using a watch list in Yahoo Finance > My Portfolio. Just pretend you bought some shares of your choice. If you need help to set-up the watch list, let me know.

No one can tell what you should invest in the market. You need to decide what’s right for you at the present time. Before you start investing, the first thing you need to decide is what risk level you want to take. CDs backed up by the government has about 3-4% annual return for the long term with a low risk. Bonds or Bonds Funds has about 5-7% annual return for the long term with a medium risk. Stocks or Stock Mutual Funds has about 8-10% annual return for the long term with a high risk and are more volatile than Bonds. A person can make more than 10% annual return with the right investment. Usually the more risk you take, the more return you will have, but not always.

The stock market is basally made up of stocks and bonds. Investment managers pick a group of stocks to make a mutual fund or a group of bonds to make a bond fund. They even put a mixture of stocks and bonds together and call it a Growth & Income Fund.

1- MUTUAL FUNDS: Mutual funds have a group of stocks (could be around 100+) invested in different sectors, and manage by a professional. Managers have lots of schooling for investing in stocks, around 8 years. So I think managers can pick stocks better than I can. There are lots of different kinds of mutual funds and they have different risk level. There are 100s of funds that does not charge any fees to buy it’s shares and they are called Noload Funds. There are also some funds called Load Funds that charge about 5% of your investment. You can make a buy or sell order anytime of the day for mutual funds shares but it will not go in affect until the close of the day. Most funds has trading restriction and you may not be able to trade more than 4 times a year. That’s because it makes it hard for the fund to make a good return if there is to much trading in the fund, causing the fund manager to make more buys and sells and keep more cash on hand. Mutual funds are meant for long term investors.
2- STOCKS: Stocks is more volatile than funds unless you spread you money in several different areas and know witch area will do best. There are 10 stock sectors and over 100 sub-sectors to choose from. Stock trading restriction is only a few days, not like mutual funds. If you own stocks, you will need to keep up with all the company’s business so you don’t get stuck with a bad stock. That could take a lots of time. If a person buys just a few stocks he probably is hoping to make a bigger return but he may be taking more risk. If that’s the case, look at the leverage ETFs that represents a large group of stocks. That could be another choice.
3- ETFs (Exchange Traded Funds): ETFs are like a mutual fund but trades like a stock and that is the main differences between ETFs and stocks and mutual funds. There are some ETFs that represents Index’s. An Index is like S&P or DOW. Index’s operate just like a mutual fund with a group of stocks in deferent sectors, manage by professionals. You can’t buy Index’s because they are not for sell. A company owns them. But you can buy a mutual funds or an ETF that has the same stocks as the Index they represent. There are a lots of different kinds of ETFs for someone to choose from. There are some that represent almost every kind of sub-sector. And there are some that have 1x leverage, some have 2x leverage for aggressive investors, and some has 3x leverage for more aggressive investors. If you wish you had more money to invest, the 3x is like having three times the amount of your money in the market. You will make more in an up market but lose more in a down market.

To buy stocks or funds, you need a broker account. You can open an account online and it is free to open. You can find several good discount brokers that charge $8.00 and under per stock trade and no fee on Noload Funds. If you only have a small amount of money to invest, it may be best to start in Noload Funds because of the broker fees. Most broker websites have good research tools. Some popular broker websites are Fidelity, TD Ameritrade, E-trade, Scottrade and others. I think you need a min. Of $500 (some sites $2,500) to open a broker account and need to be at lease 18 years old. If you not 18, you might could get your Dad to open an account for you.

Self-taught from 24 years of experience.

Susan asks…

What are some stocks $10 or under that I can invest in that will make some quick money?

Reason I want it $10 or under is where I can buy more shares I only have $400 to spend. Trying to make some money. Also include some reasons you think these stocks are a great buy.

John answers:

CitiGroup.

Jenny asks…

Need to make QUICK money in stock simulator game. Any Ideas?

I am having a competition with a stock market simulator game and want to win. Any ideas on high risk stocks with a potentially high payout?

John answers:

Hey,
If you are using Wall Street Survivor or UpDown.com, I suggest http://www.FineLineInvesting.com

I run the website and have a variety of people contribute. I am currently ranked 97th out of 5000+ in the UpDown student contest.

I traded a lot of small-cap stocks recently to try and increase my gains. I rode FNM and FRE from under $0.80 to $1.00+. Now with the market so volatile, there isn’t as much need for just using small-caps.

Try shorting UAUA (view the October 17th entry on FineLineInvesting.com)

Joseph asks…

How can I make quick money in a stock simulation game?

I have 1 million and I have to make 200,000, I don’t mind taking a very risky position since its fake money, what can I buy right now to make that much? Please help.

John answers:

So you made it! Want to trade either as a newbie investor, formerly guided investor or your broker finally P’d you off! Now you decided to take matters into your own hands. You took the first steps of opening and funding your self directed online trading account and now you find yourself faced with all the power of the internet at your fingertips, hence becoming in a sense the ROOKIETRADER. Suddenly you realize you’re on your own…! Where do I start? What do I invest my money in? Who do I trust for guidance? Why is everyone and his uncle claiming they’re the best source for stock information? How do I become a successful trader? When is it safe to buy stock? At some point you will be faced with this scenario and realize that there is a certain amount of help available to you that you will need and then you stumble upon a community of home style electronic daytraders such as yourself… You will be quickly drawn to the lure of easy information compiled by others on internet chat discussion forums for trading stocks and you will be thrown into a spinning fascination of daytraders trying to influence your decisions, sway your opinions and force their half baked truths upon you! But ultimately the responsibility falls on you …Read More at http://gwestrookitraders.com/links.html

Thomas asks…

what are the quick ways to make money on high interest in stocks?

I am tired of real estate and loooong term deposits , where the money gets locked in !!

John answers:

Buy out of the money options (puts or calls)…and you must be right about the movement of the underlying security.

It’s easy to double (or lose half) of your money each day.

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