Buying, Selling shares for easy money???

Question

Let say i buy 10,000 worth of shares in one company.
At $50 that means i have 200 shares.

A week after i buy the shares the company release a big product and shares go up to $60. If i sell my shares the other day that mean i have a $10 increase for every share? So that mean i just made $2,000(200x10) in just 1 week.

Is that even possible to do? Or is this bussines more complicated?

Answer 1

Yes, that's possible. However, you could buy that stock at $50. a share, it has a bad earnings report, and you lose $10. a share, too. Or it could just sit there at $50. for three years, and you make nothing.

Look back a couple of days when the market tumbled, and see what happened. Some people lost a lot. The real problem is that it's hard to tell when the market itself has turned up or turned down. That's the trick to making money, though in general, if you buy quality stocks, you'll make money over time. The time could be quite long, however.

Other costs:
- Broker fees at places like Ameritrade are quite cheap...maybe around $10.

- You might owe some tax on your profit when you sell, too.

Answer 2

The simple answer is no you cannot. Only people who own a "chair" on an exchange are permitted to trade in real time. With online brokerages the effect isn't much different than real time for highly liquid securities. Of course there are securities that don't even trade weekly, so even if you place an order today it could be a week or more before it is filled. There are also securities that trade daily, but the trading is thin. If you place a large order the order may be filled over a period of weeks. There are two different types of markets in the US, dealer markets and auction markets. In dealer markets the idea of "real time" is meaningless. You are only permitted to trade with a dealer and only if the price is acceptable to the dealer. They set prices, you set volume up to their limiting volume. Orders to dealers are routed so that the dealer has to honor the last posted price for market orders, regardless of timing. Limit orders of the same price are routed on a first come first serve basis unless there is a tie in timing, then it is by order size and then by a flip of a coin(electronic coin now). In auction markets you are instructing your broker how to bid in the auction. If you place a market order your broker will continue to bid until your order fills without regard to the cost to you. If you place a limit order then it is placed in the auction book until such time the order would naturally be filled, again first come first served followed by size and a coin toss. Most of the "real time" or execution in a minute stuff is an illusion. Usually you have a dealer who is really the other counter party and they are widening the spread to guarantee quick execution giving them an extra five to ten percent interest over a year from the extra spread. You are, of course, losing five to ten percent per year for the quick trade. The only way actual "real time" trading could happen would be if there really happened to be a private market counter-party who was trading in the opposite direction in the same quantity at the same moment. Another thing most people do not realize is that the "tape" that is the listing of trades is not actually in the order they happen. Block trades are taken off the tape and not reported until after execution is complete. So If I sell 100 shares of IBM but the other party is a block trade then my trade never makes it to the tape. This is important because it can make the stock look like it is moving up or down when it is not doing so as some trades are being removed for the block order. When it is eventually reported it is at the weighted average trade price, but it can look like a spike since it may be away from the current prices. It could look like a sudden "dip" when in fact it is an order filled an hour ago when prices were lower. This is true in all markets worldwide. Trades when markets are closed are dangerous. If you place a market order to sell a 50 stock and the only buy order is a 5 limit order, that sell will be filled at 5 and not at the 50 it should be. Mostly the market is made up of dealers who only execute trades that are bad for the public. If it is a good trade they keep it. Finally, the bid ask spread is designed to keep day traders from making money. If the spread is narrow then that means the dealer has walked away and will allow collapses when people move on to the next fad. You would be better in becoming a value investor. Read "The Intelligent Investor," by Benjamin Graham. It was last published in 1972 and is still required college reading.

Answer 3

well yes its that easy. Now, all you have to do is be on top of hundreds of companies, and be able to predict exactly when they are going to announce they came up with some revolutionary product to turn sawdust into fuel, and you will make a heck of a lot more than just $2000 in one week. Timing is everything, and that involves years of research, investigation, economic analysis, market conditions, and then, maybe some luck as well.

Answer 4

Of course you can do that. Stock market is built on this. However, there is a broker charge that u need to take under consideration

Answer 5

I did a trading course awhile back and its perfect for beginners. Feel free to contact me and I will pass on some free information for you:0)

Answer 6

It is possible to do but it is not as easy as you say in one breath. You need patience, intuition & flexibility in dealing with share trading.The mantra is: buy in deep,(wait) & sell on high.

Answer 7

yeah.you must pay more patience

good luck!!



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