Stock Markets Exposed

Hi, I am 18 and I am trying to start investing in stocks. If I use etrade and I buy a stock and try to sell it

How, do i earn my money. Someone recommend that I find a company to invest in. But the stock with a minum of 1,000 and leave it there for 5 years, will this be a successful thing to do? I wan't to make a good return.

Public Comments

1. You sell it for more than you buy it for, less the transaction fees to buy and sell. There is one major rule that always makes money: Buy low and sell high.
2. 1st of all you have to learn some useful tips before starting investing in stocks: 1. What Is a Stock? Want to own part of a business without having to show up at its office every day? Or ever? Stock is the vehicle of choice for those who do. Dating back to the Dutch mutual stock corporations of the 16th century, the modern stock market exists as a way for entrepreneurs to finance businesses using money collected from investors. In return for ponying up the dough to finance the company, the investor becomes a part owner of the company. That ownership is represented by stock -- specialized financial "securities," or financial instruments -- that are "secured" by a claim on the assets and profits of a company. 2. Types of Stock Common Stock. Common stock is aptly named, as it is the most common form of stock an investor will encounter. It is an ideal investment vehicle for individuals because anyone can own it; there are absolutely no restrictions on who can purchase it. Young, old, savvy, reckless -- heck, even professional mimes are allowed to own stock. [Editor's note: Complaints about this gratuitous and completely unnecessary shot at the fine profession of mime should be directed to the Association of Professional Mimes or, if you're really feeling ornery, the White House.] Common stock is more than just a piece of paper; it represents a proportional share of ownership in a company -- a stake in a real, living, breathing business. By owning stock -- the most amazing wealth-creation vehicle ever conceived (except for inheriting money from a relative you've never heard of) -- you are a part owner of a business. Shareholders "own" a part of the assets of the company and part of the stream of cash those assets generate. As the company acquires more assets and the stream of cash it generates gets larger, the value of the business increases. This increase in the value of the business is what drives up the value of the stock in that business. Because they own a part of the business, shareholders get one vote per share of stock to elect the board of directors. The board is a group of individuals who oversee major decisions made by the company. Far from being a perfunctory collection of do-nothings, the board wields a lot of power in corporate America. Boards decide how the money the company makes is spent. Decisions on whether a company will invest in itself, buy other companies, pay a dividend, or repurchase stock are all the purview of the board of directors. Top company management -- who the board hires and fires -- will give some advice, but in the end the board makes the final decision. As with most things in life, the potential reward from owning stock in a growing business has some possible pitfalls. Shareholders also get a full share of the risk inherent in operating the business. If things go bad, their shares of stock may decrease in value -- or even end up being worthless if the company goes bankrupt. You will learn about selecting stocks -- or businesses -- in Step 6. Analyzing Stocks. Different Classes of Stock. Occasionally, companies find it necessary for various reasons to concentrate the voting power of a company into a specific class of stock where the majority is owned by a certain set of people. For instance, if a family business needs to raise money by selling equity, sometimes they will create a second class of stock that they control that has 10 votes per share of stock and sell a class of stock that only has one vote per share to others. Does this sound like a bad deal? Many investors believe it is and routinely avoid companies where there are multiple classes of voting stock. This kind of structure is most common in media companies and has been around only since 1987. When there is more than one kind of stock, they are often designated as Class A or Class B shares. On our Quotes & Data page, this is signified on the New York Stock Exchange and American Stock Exchange by a period and then a letter following the ticker symbol, a shorthand name for the company's shares that brokerages use to facilitate transactions. For instance, Berkshire Hathaway Class A shares trade as BRK.A, whereas Berkshire Class B shares trade as BRK.B. On the Nasdaq stock market, the class of stock becomes a fifth letter in the ticker symbol. For example, Bel Fuse trades under the tickers BELFA (the Class A shares) and BELFB (the Class B shares). 3. How Stocks Trade Probably one of the most confusing aspects of investing is understanding how stocks actually trade. Words such as "bid," "ask," "volume," and "spread" can be quite confusing. Listed Exchange. The New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX, composed of the Boston, Philadelphia, Chicago, and San Francisco Exchanges and now merged with the Nasdaq stock market) are both "listed" exchanges, meaning that brokerage firms contribute individuals known as "specialists" who are responsible for all of the trading in a specific stock. Volume, or the number of shares that trade on a given day, is counted by the specialist and reported to the exchange along with information on the price and size of each trade. NYSE trades still take place face-to-face in the trading pit (yes, just like in the movies) where buyers and sellers physically converge on the specialist who matches buyers with sellers, but computers play a big part in the process these days. All trades are "auctions." There is no set price, although the last trade is often considered to be the "price" of a stock. In reality, the price is the highest amount any buyer is willing to pay at any given moment. When demand for a certain stock is high, the various buyers bid the price higher to induce sellers to sell. When demand for a stock is low, sellers must sell at lower prices to attract buyers and the price drops. Over-the-Counter Market. The Nasdaq stock market, the Nasdaq SmallCap, and the OTC Bulletin Board are the three main over-the-counter markets. In an over-the-counter market, brokerages (also known as broker-dealers) act as "market makers" for various stocks. The brokerages interact over a centralized computer system managed by the Nasdaq. Market makers may match up buyers and sellers directly, but mostly they maintain an inventory of shares to meet the demands of the market. So when you want to sell 100 shares of ABC stock, you don't have to wait for someone else to place an order to buy 100 shares of ABC; the market maker steps in, buys them from you immediately, then sells them when a buyer comes along. Market makers and specialists keep the markets "liquid" each in their own way. You are assured that, except in extraordinary circumstances, you can always buy or sell your shares if the market is open. "Volume" numbers under the Nasdaq system are often inaccurate. Since most trades are in and out of the market makers accounts, what would be one trade on the NYSE (where buyers and sellers are matched directly) is usually two trades on the Nasdaq. 4. Buying Stocks Use a Brokerage. The most common way to buy stocks is to use a brokerage. You can either use one of the many way-too-expensive full-service (or full-price) brokers, or use a discount broker to execute your trades. You will learn more about the ins and outs of brokerages and how to pick one in our Pick a Broker section. If you're really rarin' to get started, head straight to our brokers area where you can compare brokers and open an account. When you use a brokerage, you can have a cash account or a margin account ("Danger, Will Robinson. Danger!"), meaning you can borrow money to buy stocks. (Note: IRAs and custodial accounts are not allowed to be margin accounts.) 5. Shorting Stocks If you buy a security with the expectation that the price will rise, you are "long" the stock. But you can profit from stocks that go down, too. This is an advanced investing technique called "short selling." When you short a stock, your broker arranges for you to borrow stock from a pool of shares maintained by brokers for that purpose. The shares are then sold and the proceeds from the sale are credited to your brokerage account. At some point in the future, you must "close" the short by buying the same number of shares (adjusted for any splits that might have occurred) in the market and returning them to the short pool. If the price of the stock has gone down while you were holding it, you can use the money you received from the sale of the borrowed shares to buy the stock, and you will have cash left over. That's how you profit from a stock that goes down. Unfortunately, if the stock has gone up, you will have to add some money of your own when closing out a short position. That's how you lose money when a stock goes up. Properly done, shorting can work as a hedge against a falling market. Improperly done, you can lose even more money on a short than you would lose if you invested in a company that went bankrupt. Imagine that you buy a company for $50 per share and it goes belly up. You've lost $50. (You should have shorted it!) But imagine shorting a stock for $50 that subsequently triples. When you close that short position, it will cost you $150 a share to buy back the shares you sold for $50. Many a short seller has been caught in this trap because brokers won't let you hold on to a short position unless you have money or other assets to cover the short at all times. The basics of the shorting transaction are straightforward. Most online brokerages have a box to check for a short sale or a "buy to cover." Occasionally there won't be enough shares in the short pool and a short sale won't go through. There are also rules about shorti
3. Hi Jessie, I think I started when I was 16. The younger you are when you begin, the more time you will have to earn your fortune. So, yes, begin now. The market is currently down and there are some decent bargains out there. Now for the bad news. Your success will of course depend on the stock you pick. Your first pick may or may not turn out to be successful, no matter how long you hold it. But in general the advice you were given is good. If you do pick a good stock and it continues to be good, then in 5 years your initial investment will perhaps double in value or maybe even more. When you start out you have sufficient funds to buy only one stock. That leaves you wide open to what is known as specific risk--risk that the stock is going to be a dud. Keep that in mind. There are a couple of alternatives open to you to reduce that specific risk. ETFs allow you to spread the risk with a small initial investment. There are some that have very good past performance records. I do not believe that I would use Etrade though. They are on the verge of bankrupcy. They made some terrible bets and lost a lot of money. I think Scottrade might be a safer and less expensive broker for you to use. Here is a link for you to learn about ETFs, http://www.etfconnect.com/ One of my favorites is GAM.
4. You wanna look at the stem-cell research industry, because that industry is bound to grow like crazy in the very near future. One company that I like in particular is Advanced Cell Technology (ACTC.OB). They are the first company to use embryonic stem cells for research without actually harming the embryos.
5. One of the best investment vehicles available to investors is a DRIP Plan. I have had mine for over 22 years and it has given me annual average returns of 10.4% Pretty solid returns. Check them out.
6. if you give wrong answer he will report you for nothing ( we will get ban )
7. insulting other members