Home
PLEASE ANSWER MY QUESTION (ROOKIE TO STOCKS)
:welcome The market can be very confusing and you just have to be anxious and want to read everything you can get your fingers on. There is so much information on the internet you just need to know where to go.
1. For straight facts you might want to check out : http://www.investopedia.com/university/stocks/
This is a basic tutorial that goes over the facts of the market.
As far as reading more about the market, you might want to join a few forums including this one and just read around. A few of them will have tutorials as well.
www.hotstockmarket.com
You can buy as little as 1 to an infinite numbers of shares of a company, it depends on how many you can afford.
www.yahoo.com has a good finance section that tells you all the key statistics, news, charts etc. That is a good place to start. If you have a broker, their website might also have a good stock quote set up.
2. Sharebuilder is for a certain type of investor. A good candidate for Sharebuilder would be that you have a relatively small capitol, and you want to learn about the market, but dont have much time to always be checking stock quotes and to be trading everyday. This is for a long term investor as you can only sell/buy on Tuesdays. It really depends how you want to trade.
3. If a stock is trading at $1 and you have $1 (plus commisios) you can buy ONE share of that stock. There is no minimum as to how many shares you buy, again, it is up to how much money you have in your account and how much you want to invest in the stock. Important features of the yahoo stock summary would be : looking at the chart, seeing support and possibley resistance, looking at the key statistics, making sure the business is growing by having the earnings increasing, and seeing if the management has been buying the stock more then selling and see if they own a large portion of the stock. There are much more complrx ways to do fundamental analysis, but these are a few simple methods to see if your company is healthy.
4. Well lets take an example.
You buy 100 shares of TASR @ $40. That is 100 * 40 which is $4,000 + commisions ($4 with sharebuilder.) That stock goes to $50. You sell your 100 shares and now you sell it at $50 meaning you make $1,000.
100 * $50= $5,000 (+ comm.) Say you had only bought 50 shares.
$40 * 50 = $2,000. You sell at $50. $50 + 50 = $2,500. YOu only make $500 compared to $1,000 because your original investmen was less. But don't get too excited about this because many stocks will GO DOWN, so if you arent as sure about a specific stock you would invest less in it or not at all. So the amount of money you MAKE or LOSE depends on how much you invest in the company (how many shares you buy.)
5. As far as these stocks you just need to have a broker and a couple bucks in an account and you could buy a few shares. Again, there is no minimum of shares you can buy.
6. When you sell a stock, there is a 3 day wait period for the funds to settle unless you have a margin account. Then you can withdraw the earnings from that stock you sold if it went up.
Hope this helps, and just read around.
You might want to do some paper-trading to start and then start puttin some of your well earned cash in the market.
I actually provide a licensed program...top learn more please view my topic in general discussions and spread the word once you have seen the software...talk soon, look forward to doing business