thnx i have 1 right now that is up 19% already!!!! aiming for another 56% seems that number is my lucky number :twisted: chahine
Great work. The next major hurdle for you is to be able to use margin in your account. That way you can double your return. Last year I had a return of 38% but I had the entire account fully margined so effectively I gained 76% on my money. 76% gain in one year is doubling your money in about 10 months. I'm on the same pace for this year. If I can double 5 more times I'm a millionaire!
[quote="HappyHarry"]Great work. The next major hurdle for you is to be able to use margin in your account. tell me more about it!!!! [quote:ded15c0826="HappyHarry"]If I can double 5 more times I'm a millionaire! [/quote:ded15c0826] u will just a question of time and question of staying focused....GL in that!!! chahine
You should be able to get a margin account with almost any broker. There may be a limitation on the size of the account but I'm not sure. I put $2,500 in Datek to start and had it on margin. Once I had $2,500 in, Datek would loan me another $2,500 on margin to buy more stocks. So if I had a gain of 30 per cent. It would be like this: $5,000 worth of stock 30% Gain. ---------- $6,500 Total when you sell! Your paid: $2500, so your total profit was $1500 on capital of $2,500. You know have $4,000 of capital after the 30% gain, so you actually returned 60%!!!! What a great world we live in.
ic !!! interesting!!! but that would mean that its risky in case the stock goes down.... chahine
Yep. The main risk is that you LOSE double your money too. But if the picks are good it can make a huge difference.
[quote:686b2fc09a]Margin accounts also have the ability to sell short. When selling short, you borrow stock from a firm in order to sell it, hoping that the price will decline. The difference between the initial sell price and the closing buy is your profit or loss. However if the stock rises, you can be exposed to unlimited risk.[/quote:686b2fc09a] That is a quote from the ameritrade site. I don't really understand, it seems backwards to me. What risks are involved from a stock rising?
Shorting is pretty much that you "borrow" stock at the current price from another investor. You "borrow" it expecting it go down. So you say you tell your broker "short 100 shares of KKD" @ the current price, lets say $30. You wait a little and once you want to give that stock back to the original investor (remember you have his 100 shares) you buy them back at the current price. So if in the 3 weeks you shorted it the stock 50%, then you buy back 100 shares @ $15. 100 x 15 = $1,500 (thats how much you buy it back for) 100 x 30 = 3,000. That how much they were origanally worth. So you just made $1,500 from "shorting" Hopes this helps!