Stock questions (absolute noob here)

NYSpeed Automotive NYSpeed Off Topic
1

I’d like to start buying stocks. I want to just do it my self, for example.
Transfer money to etrade or the like
Buy some stock in a company that I think will be profitable.
profit?

What website should I buy through, is it as easy as I think?

for example, I’d like to buy stock in ford… it’s at 1.90 right now.
If I buy 100 shares, and ford goes bankrupt, i’m out $200, so what.
But if It goes to 4.00 i’m doubling my money…
correct?

is it as easy as this? someone lead me in the right direction.

2

yup, easy as that.

I don’t think you’ll loose all your $$$ if a company goes bankrupt though. I believe after debts are paid, the rest of their assets are divided between shareholders

3

bankruptcy doesnt necessarily mean ceasing operations. often times, bankruptcy is entered into because it is the only way to keep operations running. it provides protection from creditors.

4

I guess I worded that wrong. If a company goes under is maybe a better way to put it lol

5

profitable operations aren’t synonymous with high dividend payments or an appreciating stock price. if it were that simple, then everyone would make money in the market. most people haven’t been making money in the market lately, even if they are invested in stable, solvent, profitable entities.

6

But what i’m saying, lets say I buy $200 worth of stock in ford. each share is ~1.90. Lets say in a month it goes up to 4.00 a share, and I sell, that would net me ~$400, correct?

7

yup

if you buy 100 shares at X price, as X increases, you multiply your 100 shares by the new X.

but i believe they charge you for selling and initially buying stocks if im not mistaking

8

Ford wont be going to 4 dollars anytime soon. And only buy now if you can let it sit for a while. This is a good market to buy in for you are in it for the long run.

9

it was just an example he was using

10

yes, you will get charged for the purchase and sale…check the fine print to determine if it is a flat rate or based upon the number of shares.

Also, don’t forget the tax man. What you net after taxes will be less. And selling too soon will require that more taxes be paid. Holding long term would lower the taxes you are required to pay on the gain.

Also you can deduct your losses during tax season…subject to limitations.

11

If you have a 401 or retirement plan with a brokerage house they may waive your annual fee or some other expenses if you trade stock with them. Thats what I do.

12

I assume that only applies to taxed money? Can you do that for a depreciated mutual fund (or part of a 401K plan)?

13

while im in here wtf is short selling?

14

you buy shares and then you sell the shares and the proceeds are credited to his broker’s account at the firm upon which the firm can earn interest. Generally the short seller does not earn interest on the short proceeds.
The investor may close the position by buying back the shares (called covering). If the price has dropped, he makes a profit. If the stock advanced he takes a loss.
then the investor may return the shares to the lender or stay short indefinitely.

15

etrade.com

16

i vaguley understand this but ill do some more researching, id prolli have to see an example,

is there any penalty for selling stuff immediately (well like maybe a few hours) after buying it? besides paying my fee (4.95 tradeking)

17

Let’s say you make 25%, great returns… on $1,000 its hardly worth it in this market.

Play with a simulator for 6 months, then decide if you want to play with real money.

18

i dont understand it either, i copied it and edited parts to make it more understandable off of wiki lol, some of the english is fucked up tho

19

No, you need to subtract fees and taxes.

20

Oh wait, I just realized I’m trying to have a day crew conversation in a night crew thread, nevermind