As SAHM’s most of us look for easy and low investment ways to make money. One way that seems to get past most of us is buying and selling stocks, because most of us think there is a floor to how much you can invest. Well there isn’t. If you want to buy a stock that costs $5, then you only need $5. First, it is no where near as difficult or complicated as most people make it out to be. Nor is it only intended for the 1 percenters. It’s actually extremely easy to get started.
Some of the more common sites are E-Trade, or Robinhood. These are some of the better and easier of the many companies you can use. I have used both and they were very reliable and particularly simple to figure out. You will have to decide what is more important to you, ease and facility of use or price. E-trade has a fee for each transaction but its more user friendly than Robinhood. On the other hand Robinhood is free but a little more complicated. I ended up switching from E-trade, because since I usually invest smaller amounts of money I didn’t want to lose money on to the fees. Once you set up an account, you must transfer money from your bank account. This obviously requires you input your bank account information. Don’t worry too much about it. I have done both accounts and neither has caused me any trouble. You will also be able to transfer money back and forth from that account in the future as it will be saved.
Now depending on how much money you are willing and able to invest, you may want to do Pennystocks. Simply google “pennystocks” and you should get, in the first link or so, a list of current penny stocks. These are very cheap stocks that you can buy in larger amounts(remember the profit and loss is by percentage, so while a .10 cent stock seems silly if you buy 1,000 you’ve invested $100. lets say your stock goes up .10 you’ve just made $100. Please remember to do a little research on the company before you buy it. i.e. don’t buy smashing right after they do a news report someones phone blew up their care. News like that obviously makes for a huge drop in number. I’m just saying get a little background on the company first, and look a their track record in the market do they have a lot of peaks and dips?(this makes good for day trading) Do the have a fairly steady increase? this makes good for long term. Which brings me to….
Day Trading VS. Long Term
You can either do day trading or more long term trading. Day trading is simply short term. This is more for someone who will have the ability to sit down and watch the progress of the stocks in order to be able to sell on the spot. Now be sure that if you buy and sell the same stock on the within 1 day that you don’t do it more than 3 times in one week. There is a law that limits you to 3 per week unless you have more than $25,0oo in the account. Long term trading may not be as instantly gratifying as day trading, but it can be significantly more profitable. The longer a stock sits, the more your are likely to make out of it. The 3 rules apply just the same in day trading as in long term trading. The only difference might be that in day trading you should have a preset percentage that you will decide to sell at when your stock is going up. The reason being that when you get greedy, yours likely to wait to long and it will drop again. I know, everyone loves to point out the HUGE jumps in stocks and while they do happen the likelihood of it happening regularly in the stocks you invest in is not very high. At the end of the say it’s a little bit of a gamble you just have to decide how much your willing to risk.
When to BUY/SELL
If you are just dropping in for a **QUICK TIP**… Trading, has 3 basic rules to ALWAYS follow, and they
- When the stock (you are considering) drops… BUY!
- When the stock (you own) goes up… SELL!
- When the stock (you own) drops… HOLD IT!
Do not waiver! You will feel the need to cave in,out of fear you will lose more, if your stocks are dropping. Just ride it out till your numbers rise again. Remember trading is ALWAYS a gamble. You will LOSE some, but you will also GAIN some.
Good luck… and
I’ve always wanted to say that, at an appropriate time. 😉