Stock Markets Exposed

$4000...how to trade my stock?

I am interested in buying stocks with like $4000 BUT i am completely new to trading them... Can i buy a stock today ...and sell it tomorow if its something like $1.5 up?...is it allowed to do so? and is it what i should be doing?.....what effects does that have (+/-ve)... i need an advice...and i wanna know why people hold on to their stocks for months/years... thank u so much

Public Comments

1. You can open an account at web site such as eTrade. There is a fee when you buy and when you sell and if it just goes up a few cents you will lose it in fees. I would look into mutual funds where a fund manager decides what to invest in and you just by shares of the total fund.
2. if you buy then you have to go through someone so when you sell go through that same someone i still have stock in wal-mart after 3 years because it pays dividends (%) which is like letting your money work for you if your co. is good then money should over time increase
3. Go to a broker and buy some mutual funds. I don't recommend stock picking to beginners.
4. Although you can buy a stock today and sell it tommorrow it is not advisable. Day trading and other short term trading is the arena of the experts. Additionally, the fees invovled with buying and selling are often too high to justify small sales. People buy and hold thier stocks for monthes and years because they want to grow thier money over the long term. Stocks go up and down on a day to day basis but they tend to stay in an upward motion. If you have a quality stock it will continue to increase over time. Unless you have a pressing expense, a better investment option or the stock is just a complete dud there is no reason to dump a stock. Before you invest you should explore your options, do your reading and homework and set some goals. Goals can be time based, such as you want to keep the money invested for 5 or 10 years or then can be profit based, such as selling the stock when it reaches a certain price or doubles or triples or whatever. Good luck with your investments.
5. Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it. http://www.investingtutorial.info/ wish it will help you. Good Luck , Best Wishes!
6. stocks are meant as a long term investments. by keeping them longer your capital gains taxes are smaller. just look for fundamental sound companies. i would read the following 2 books before you start investing any money. the intelligent investor security analysis
7. Once you have a funded brokerage account, you can buy and sell stock as often as you want. Remember that the gain from a buy and sell transactions will be..... gain = #shares * (SellPrice - BuyPrice) - 2*TransactionFee As you can see, your gain is also a function of the number of shares you own and the transaction fee you will be paying. Hopefully you are using a low cost brokerage company. I use TD-Ameritrade which has a transaction fee for each buy or sell transaction of $10.00. Assuming you had 100 shares, $10 transaction fees and your SellPrice was $1.50 more than your BuyPrice then your gain would be. gain = 100 * ($1.50) - 2*10.00 = 150 - 20 = $130 The more often you sell, the more transaction fees you will be paying that will cut into your stock price gains. As a swing trader, you will need to be carefull. Good luck to you. Having luck is executing with a prepared mind.