How does it work investing in stock market?

I always hear that my uncle does good money with stocks. I want to know how it works, where to start, who to buy from or how to buy stocks from, and how the earnings come? Asked by EdwardBellaRenesmee 40 months ago Similar questions: work investing stock market Business > Financial Planning.

Similar questions: work investing stock market.

Playing the stock market is like gambling in a casino - it's mostly just luck unless you have insider information. You place your bet by buying a stock at price A, and then hold in to the stock until it goes up and sell at price B. Of course, a stock may never go up and may, in fact, go down, sometimes all the way to zero.In this case you lose, even if you recover your money.

The "house"(broker) always gets their cut, generally when you buy and when you sell. The stock market is a scam to make brokers richer. Some people will tell you that you can always make money if you do your research; I would call this BS, because the price of a stock is determined by thousands or hundreds of thousands of people buying and selling in a seemingly random manner.

Usually the price of a stock is based upon the perceived value to the buyer and has nothing to do with how well the company is doing, or how much profit the company makes. Another way to make money on stocks, besides selling higher than you bought them, is through the payment of dividends, and is another mystical formula that the company board pulls out of it's a$$ usually at the end of the fiscal year.My advice, if you can't afford to take the money to the back door and throw it away, don't gamble - either in a casino or the stock market. Schelli's Recommendations The Neatest Little Guide to Stock Market Investing Amazon List Price: $15.00 Used from: $6.99 Average Customer Rating: 5.0 out of 5 (based on 212 reviews) Jim Cramer's Real Money: Sane Investing in an Insane World Amazon List Price: $26.00 Used from: $10.43 Average Customer Rating: 4.0 out of 5 (based on 268 reviews) The Complete TurtleTrader: The Legend, the Lessons, the Results Amazon List Price: $25.95 Used from: $5.51 Average Customer Rating: 4.5 out of 5 (based on 72 reviews) .

1 If you have some disposable income, just pick out a brokerage like etrade, scott trade, fidelity etc. And set up a brokerage account. You wire them the money and they place it in a core account for you. Then you just log onto your account and pick out what you want, buy and sell anything under the sun.

They will buy stocks from your core account and when you sell that is where they park the proceeds. At the end of the year they will mail you a tax form with all of your ins and outs on it and you take that with you to your accountant when tax time rolls around.

If you have some disposable income, just pick out a brokerage like etrade, scott trade, fidelity etc. And set up a brokerage account. You wire them the money and they place it in a core account for you. Then you just log onto your account and pick out what you want, buy and sell anything under the sun.

They will buy stocks from your core account and when you sell that is where they park the proceeds. At the end of the year they will mail you a tax form with all of your ins and outs on it and you take that with you to your accountant when tax time rolls around.

EdwardBellaRenesmee replied to post #1: 2 With all the explanations, thanks, but I think the game is too complicated for stocks. I will never be interested in it anymore... wonder how uncle does it...

With all the explanations, thanks, but I think the game is too complicated for stocks. I will never be interested in it anymore... wonder how uncle does it...

3 It can be complicated, but it does not have to be. Pick a topic you know something about and then look at the companies involved. Buy stock for your favorite company.

Hold it for a while and if it goes up, you made money. If not, it was interesting to see how the system works. But never ever sell when it goes down and people panic.

That is the time to buy. A few years ago (2001) I bought Dell and Yahoo and Amazon. Just about doubled my money when I sold out.

Now I am interested in General Motors. I like the Volt - the new battery car. I would buy now and keep it for five or ten years.

Then I should have five times my investment or more.

It can be complicated, but it does not have to be. Pick a topic you know something about and then look at the companies involved. Buy stock for your favorite company.

Hold it for a while and if it goes up, you made money. If not, it was interesting to see how the system works. But never ever sell when it goes down and people panic.

That is the time to buy. A few years ago (2001) I bought Dell and Yahoo and Amazon. Just about doubled my money when I sold out.

Now I am interested in General Motors. I like the Volt - the new battery car. I would buy now and keep it for five or ten years.

Then I should have five times my investment or more.

4 "But never ever sell when it goes down and people panic. That is the time to buy" - not sound advice. During the dot com boom, I was playing at day trading - I bought a stock at $9.00; it went to 17.

I though it was going to go higher so I kept it (greedy little bitch, I know), Then it dropped, and dropped. I thought it would recover; it never did - the company went bankrupt. So the advice to never sell is not good advice.

You need to have a ceiling to sell at and most definintely a floor where you can stop your losses.

But never ever sell when it goes down and people panic. That is the time to buy" - not sound advice. During the dot com boom, I was playing at day trading - I bought a stock at $9.00; it went to 17.

I though it was going to go higher so I kept it (greedy little bitch, I know), Then it dropped, and dropped. I thought it would recover; it never did - the company went bankrupt. So the advice to never sell is not good advice.

You need to have a ceiling to sell at and most definintely a floor where you can stop your losses.

" "what book is best to buy on how to get started investing in the stock market step by step. Also investing in foreclosur" "If you could recommend one great book on investing in the stock market, which would it be?" "Do any of the available stock picking and timing software packages on the market (eg. , Omni Trader) actually work?

" "Any slow financial investments besides retirement accounts and the stock market?" "Is investing on the stock market the same as gambling?

What book is best to buy on how to get started investing in the stock market step by step. Also investing in foreclosur.

Do any of the available stock picking and timing software packages on the market (eg. , Omni Trader) actually work?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.