stock market question...?

Question

How do you make money on the stock market...I understand the basics...but I don't know how the actual money is made.

Answer 1

Buy when everyone else is selling and sell when everyone else is buying. And hold the good ones for the long haul. That strategy made Warren Buffet the second richest man in the world.

Answer 2

There are two ways to make money from stocks.

1) The price of the stock goes up. Essentially the stock fluctuates upward, or investors decide that a company is likely to earn more money that was previously thought and will thus pay more for its shares. You can then sell the stock for more than you paid for it.
2) The company distributes some of its profits to its investors. This is known as a dividend. You just pocket the money.

Stocks have value because they pay out money to investors in dividends, or may pay out dividends in the future. Stock prices are based on the stock market's perception of how much cash a company will generate and will go up if it becomes apparent that a stock will make more money, and down if it seems the company will make less.

Answer 3

You make money by buying stock in a good company at a good (low) price, then you wait for several years. The price rises during those years. Then you sell at a profit.

For example, I bought some Westinghouse stock about 12 years ago for about $1,500. In the meantime, with mergers and acquisitions and spin-off, it became CBS, then Viacom, then half CBS and half Viacom. I sold the Viacom half a couple of weeks ago for about $2,200. So my investment of about $770 paid off at 3 times that amount, and I still have the CBS half of the investment.

The key is to buy into solid performers that are first or second in their industries, and invest for the long run. Look for companies that have a history of paying dividends, and increasing those dividends over time. GE and Wachovia are good examples, and there are many others out there.

Answer 4

You buy 20 shares of Stock "A" at $10 per share
You wait till the share price of Stock "A" goes to $40
You Sell you 20 shares
And now you made $600

Answer 5

The basics tell you. If you buy 100 shrs @ $10 & sell for $11 because demand for the stock comes in that is $100 profit before broker fees. Can have that money sent to you although you normally leave it in acct to continue on. Also can have debit cards and cks for acct. Money not unavailable.

Answer 6

If you want to make money dont do it with the stock market especially in that short of time.

Have you ever heard of the Forex market? Probably. Its much better for quick profits and i think less risky

if you would like, read up on it here.
http://www.forexaim.com

hope i helped some!

thanks!

Answer 7

You buy Ford at $10.00 and a few hours, days, weeks, months, years or decades later you sell Ford at $20.00

Answer 8

You may also like to go to investopedia web site. It is very helpful with a lot of tutorials.