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Your Questions About Is It Easy To Make Money In The Stock Market


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Your Questions About Is It Easy To Make Money In The Stock Market

  1. 1. Your Questions About Is It Easy To Make Money In TheStock MarketLinda asks…Making money on the stock market?This is a general question, but I was wondering, how easy is it to make money on the startmarket if you invest in the right stock? Lets say I have $1,000, and theres a company thatsselling shares for $5 each. Then lets say a month later it jumps up to $10 a share, after Ivebought them. Does that mean that Ive just made an extra grand? Does that ever happen? Andif so can a person just trade that stock for another stock (if they think its going to go up lateron) and just keep doing that over and over again until they make a ton of money? I have noidea if thats possible or not so I thought Id ask.Steve Winston answers:Hi YES u could double your money in theory less broker fees but u would have to know whichstocks and its very rare to double ur money in a month these volatile days...Research and knowledge of the company and particular Industry is the key but if I knew whichcompany will double I aint going to tell LOL ? 1/9
  2. 2. Charles asks…Why dont investors see how easy it is to trade stocks for hugeprofits?I just dont understand why so many are losing big money trying to make money in stocks.This year i am making huge profits in the stock market buying call and put options. Thismarket is so easy to make money in but every where i see people losing money andpanicking.Steve Winston answers:Because you are just getting lucky.Options are a way to hedge your risk. But, they can pose significantly more risk than tradingstocks.If you are just buying puts or calls, you might as well go to the craps or roulette table... Or buy alottery ticket.The analogy that I use: Options are like using a table saw. Its the right tool for certain jobs...And anyone can run down to Home Depot and buy themselves a Delta Machinery 3 HP Left Tilt 2/9
  3. 3. Unisaw with Biesemeyer Fence (a really good table saw). Plug it in to the wall and rip away!But, if you dont know what youre doing, sooner or later, youre going to lose some fingers.Buying puts and calls is only part the story. To be effectively profitable you need to combineBUYING puts and calls with stock and SELLING puts and calls.Options values change for more reasons than stocks going up or down. You can buy a call,have the stock go up, and lose money. You can also buy a put, have the stock go down, andlose money.If you dont understand theta and vega risk, you better be very careful... Or, sooner or later,youre going to have a few less fingers.** Buy the way, just today I watched a friends "put" trade on Apple go from a value of over$70,000 to $8,000 in just a matter of few hours. Can you handle that sort of risk?Ruth asks…Is the stock market really worth it?I heard buying stocks is a good and easy way to make money. Is this true or does it sound toogood to be true? If it really is as good as it sounds, then why doesnt everybody just do it?Right now everyone in my family including myself are struggling for income. Is this a right timeto start? 3/9
  4. 4. Steve Winston answers:Buying stocks is a good and easy way to make money ONLY if you invest in stocks that go up.If you invests in stocks that go down from the time that you buy them, youll be loosing moneybig time! The stock market is a big risk...its gambling with your money. You might earn money,but if you lose money and you dont have a lot of it, youll have a big problem.Donna asks…Why is lowering Interest Rates good? Why does stock market goup?Seems kind of lame to get all excited about getting less interest on your money in the bank.The problem with the economy to begin with was people borrowing too much money for thingsthey cant afford like houses. Now the banks are going to make it a little easier to borrow evenMORE money and that is suppose to be good? Ridiculous. 4/9
  5. 5. Steve Winston answers:Businesses that loan money, such as banks, mortgage companies, brokers and credit cards,can all get more money to loan out for lower rates. The cheaper rates will get more people andbusinesses to borrow more and spend it.Spending helps companies make profits, profit forecasts drive stock prices, so they go up inanticipation of more commerce (spending) happening.Daniel asks…How can I make about $150-200/daily in the stock market?I am interested in day trading, buying and selling stocks in the same day. A friend of mineinvested $25,000, and usually ends up making at least $2,000/monthly, working as a fully timeday trader. I know it is not easy and there will be loses on some days, but which companies aregood to invest in, short term? My friend has given me a few suggestions, but i would like somemore (please). Thanks in advance to all those who answer. Serious answers only please.P.S. I am only doing this because I have lost my job and have a family to support. I have had noluck finding a job and I am still searching, so until I do find a job, I would think its smart to tryand make at least a little money to keep my expenses going. All helps is greatly appreciated!Thanks again! 5/9
  6. 6. Steve Winston answers:90% of day traders end up like poker players - broke.If you want to make that each day, youll start with 25K or more - maybe youll be lucky, and dogood for a week. Then go get a real job.Mark asks…1. One of the things that works to make sure consumers keepgetting better products at better prices is?A. risk.B. competition.C. stock ownership.D. discrimination.Which of the following statements about checks and checking accounts is correct?A. A check is a receipt for money deposited somewhere.B. It’s illegal to send checks through the mail.C. All checking accounts earn interest. 6/9
  7. 7. D. A check is an order to a bank for money.A market in which no one controls the prices is calledA. durability.B. perfect competition.C. stabilityD. easy money.Steve Winston answers:I think competition is good for any business. Makes them try harder to give good service, whichseems to be going out the window these days.A cheque, as it is spelled correctly, is an order to a bank for money. If anyone knows of a bankwhere you can earn interest having a cheque account, please let me there a market that no one controls the price of? Id say that would be easy money.Joseph asks… 7/9
  8. 8. How easy (or difficult) is it to gross $30,000 a year as a short-termtrader?Thats my current salary as a truck driver. I only have a basic computer and a high speedInternet connection. If I stayed home and devoted myself to the market and making short termtrades, would 30,000 a year earnings be reasonable? Or is that just stupid? I have NO idea howmuch money people in the stock market make, or lose. NONE.Steve Winston answers:Its totally possible to make a living from short term trading. Most people fail at this attempt.Swing or day trading both have over a 95% failure rate.You need skills in;Technical AnalysisTrading Money Management (risk control)Trading Psychology (yours and the markets)The average trader makes about 22% a year..... Many people do much better than that (againthe key is average). To make 30K a year you would need a trading account of about $150,000.Keep in mind..... It takes, on average, 3-5 years to learn these skills.I hope this helps. 8/9
  9. 9. Mandy asks… Why do you put your money in a bank? You put it there for safe keeping right the bank provides services like checking to make using your money easier and your money is insured from theft right. Why are banks allowed to take my money they are supposed to keep safe and gamble with it on the stock market??? Shouldnt customers funds be separate from this kind of activity? what is the incentive to "gamble" it well if the taxpayer will just have to pay it back when the banks screws up. Steve Winston answers: Banks were at one time regulated to keep a certain portion of their customers money in the form of cash or gold but now they arent. However most smaller banks such as credit unions still operate like the days of old when a customer made a deposit the bank in-turn used a portion of that deposit to loan out with interest which paid the depositor interest on their balance and the bank made a profit as well. Powered by Yahoo! Answers Read More… 9/9Powered by TCPDF (