Notar520AC From United States of America, joined Jul 2001, 1606 posts, RR: 4 Posted (11 years 2 months 3 weeks 10 hours ago) and read 791 times:
OK, here's my situation. I want to make $900 Grand, or as close as I can get to that through the stock market. I don't really have the entire picture on how the stock market works and how people make their money through it, so could someone please explain to me, in general, how the whole thing works.
And if any of you are wondering why I would suddenly want close to $900 grand it's because I'm looking to buy a chopper.
This is just a shot I'm going to take- my parents have approved, and I would greatly appreciate it if someone could explain to me how I can make if not $900,000 dollars, close to that, or as much as I can through the stock market I would greatly appreciate it.
Delta-flyer From United States of America, joined Jul 2001, 2676 posts, RR: 7 Reply 2, posted (11 years 2 months 3 weeks 10 hours ago) and read 759 times:
I admire your enthusiasm, and with your positive attitude I am sure you will be successful. I can't help you, unfortunately, because I have always had a knack for buying high and selling low. (That's not how you make money on the stock market!)
But I think I can give you a piece of good advice: don't trust anyone with your money. Research your options thoroughly before making a decision, and get multiple independent opinions.
Or, you can watch what I do and do just the opposite.
VonRichtofen From Canada, joined Nov 2000, 4621 posts, RR: 40 Reply 6, posted (11 years 2 months 3 weeks 9 hours ago) and read 742 times:
Start with at least a couple grand, then if you make money re-invest it so that it grows. If you invest $3000, and then make $2000 off it totalling $5000, then invest the full $5000. The more you invest, the bigger the possible gains are.
Sonic From Lithuania, joined Jan 2000, 1670 posts, RR: 1 Reply 9, posted (11 years 2 months 3 weeks 1 hour ago) and read 724 times:
The stock market works this way:
The more people buys some shares -- the more the stock price of that shares raises. The more people sells the shares -- the more it falls.
It was only an abstract however. In reality it is not that simple. The full thing is something like that:
Let's say, there is a "SuperCompany" with share cost of 5$ each. 10 people wants to buy, 1000 shares each (that means, they will pay 5000$ each). While there are only 5 people selling their shares, they also wants to sell 1000 shares each. That means, those 10 people will pay 5000$ for only 500 shares. The next day share price for "SuperCompany" will be updated to 10$ per share.
The opposite also could happen. If 10 people would sell shares (1000 each) and only 5 would want to buy them, the share price would fall to 50%. All shares in market must be sold in one day. There couldn't be any "remaining shares" for tommorow. If there are less people who wants to buy shares than people who are selling them, the price will fall and those buyers will get more shares than they bid for for money they invested.
However, in reality it is even more harder. People could also buy and sell not 1000 share each but also more or less. That means there could be 10 buyers and 5 sellers and stock price will still fall if 10 buyers would want to buy like 10-100 shares each and sellers would sell 100-1000 shares each.
In great deppression let's say, everybody bought shares because they thought it's good investement. So, with everyone buying and almost no one selling, prices soon become sky-high. People didn't knew how market works and that price WILL fall. Then someone sold shares and price fell a bit. All people started panic and selling their shares, soon all prices dropped and all people started to sell shares at the smallest price they could get. However, no one wanted to buy them because people seen it is not good investement...
Lj From Netherlands, joined Nov 1999, 4169 posts, RR: 1 Reply 18, posted (11 years 2 months 2 weeks 5 days 19 hours ago) and read 657 times:
I'm into shares. No airline shares (just closed a short position in KLM put options) but all IT en telecom I was a believer (and making good money) in telecom an d IT untill I lost 67%, now I just hope I'll recoup some of the losses one day.
Sonic, you're simplification of the stock market is quite accurate. Unfortunately many people tend to forget that simplification and go crazy on the market and end up losing a lot.
Airsicknessbag From Germany, joined Aug 2000, 4723 posts, RR: 37 Reply 19, posted (11 years 2 months 2 weeks 5 days 14 hours ago) and read 645 times:
I hate being a spoilsport, and I don´t want to come across as negatively biased or sitting on a high horse, but there are some things worth considering, Notar520AC:
- Most people don´t make 900,000 USD after taxes in their entire working life.
- Hardly anybody, especially in the US where people tend to spend a higher percentage of their income rather than save it, has a freely disposable sum that huge.
- If it was possible to say "hey, I wanna make 900 Grand, let´s just try stocks", everybody would be doing that, including me.
- The stock market is NOT a money printing machine, every Dollar won there must be lost by someone else. For every Microsoft, IBM or HP success story there are hundreds of entrepreneurs NOT making it out of their garage, effectively burning their investors´ money.
- If you want to earn 900,000 USD, you have to be extremely good at what you´re doing. You won´t make such a sum on the stock market en passant. That´s only possible if you devote your professional life to making money from stocks. And even then, you still have to be better at that job than 99.99% of your competitors. This statement, by the way, is applicable to every kind of profession. And it won´t work without very VERY hard working.