How Do You Actually Make Money In Stocks?

November 24th, 2009 | by Frenday |

Let’s say you have $1000 in your account and bought 10 shares of a stock woth $40. In one month that stock would increase to $50. How much money would you have made?

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  1. 3 Responses to “How Do You Actually Make Money In Stocks?”

  2. By runFunni on Nov 24, 2009 | Reply

    Buy ( or debt ): 10×40 = $400
    Sell ( or credit ): 10×50 = $500
    Fees: ~$20 per trade ( this can have a huge variance )
    Net gain ~$60.
    Pick up a book from amazon or the library on stocks to learn more.
    Just a thought:
    It’s all about ratios. If you are investing $1000 don’t pick up a stock that runs $40/share… stick to the sub $20 stock. Don’t look for stocks to move $10/share… I look to make $2-$5/share… for example one I’m watching as I type this: WINN currently at $16.28… it had a high of ~$21 over the last month and $32 over the last 6 months.. this stock in my worthless opinion has bottomed out and should rise ( it could just as easily drop to $0 and you’d lose all $1000 of your dollars – the “fun” part of the market )…
    Let’s play a little game: you invested all $1000… that would get you
    $1000/16.28 = 61 shares
    WINN rises to to $19 today and you sell by close
    61(shares) * $19(sell price) = $1159
    now subtract investment ( $1000 ) and fees ( ~$20 ) =
    Net gain = $139US in one day… not bad for $1000
    Now let’s see what happens with a little more money to play with… using a $10,000 dollar investment your one day earnings would be $1646US on one stock
    At $100,000 you’d make ~$16,678 in one day. Not bad… but remember you can just as easily lose that much in one day. Do alot of research and “paper trade”… pretend you have $1000 and “invest” by keeping track of your money in a notepad ( don’t actually call a broker or trade online yet ) and see how well you do. If you make alot of money… maybe you will get brave and invest real money. Remember to never invest anything you can’t lose… don’t invest the house payment, food money or retirement. Set a small amount of your monthly income aside for investing and play with that… if you do well that money will soon turn into a large amount.
    Good luck and I hope this helped more than it confused…
    One last tease: $10,000 invested in WINN only and it rises by Christmas to its high of ~$32… you’d make about $9600.. not bad for 2 months “work” on a single stock… that’s how the rich get richer… and the rich get poorer

  3. By socrates on Nov 24, 2009 | Reply

    at the beginning: 10 * $40 = $400
    when sold: 10 * $50 = $500
    difference, i.e. profit: $500 – $400 = $100
    but this does not include the costs, not any dividends which you might have earned

  4. By Tammy. on Nov 24, 2009 | Reply

    Be Bill Gates’ private hired killer. And in 3 days u will be floating in cash.

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