i need help with 'stocks" for a project please?
how do you buy a stock?
what's a stock???
why are people buying stocks????
- Ron BerueLv 61 decade agoFavorite Answer
I'll answer you r Qs in the same order you asked them. THEN I'll give you some additional info.
1. how do you buy a stock? You buy a stock through an on-line broker or a full-service broker. The on-line broker is the least expensive.
2. what's a stock? Stock is a tiny piece or a % of a corporation.
3. why are people buying stocks? they buy - and sell stocks to earn money. Just about everyone wants to be rich. They want to make life a lot easier - financially - for themselves and their loved ones.
You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to this free site, recognized by Y! A as a "Featured Knowledge Partner":
Investopedia also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with your own hard-earned money.
http://finance.yahoo.com/ is also recognized by Y! A as a "Featured Knowledge Partner"
"Stock tips" aren't really tips at all..
To do successful trades, you have to have your own set of trading rules.
I'm going to share with you some of my trading rules.
I can tell you 70+ members of our trading group can't be wrong. We follow our own sets of trading rules. Whether or not you'll use them is another matter. I'll also include some trading sayings.
A] "On Wall Street there aren't any gifts."
No one gives anyone else anything - not even stock tips.
B] Bulls [Buyers] earn money.
Bears [Sellers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. they lose the money in their trading accounts.
C] Here's what no one in the trading won't do:
1] We WILL NOT trade "cheap" [inexpensive] stocks. We will not trade .BB/.OBB [dot BB/dot OBB, which is the Bulletin Board],
.PK [dot PK, which is the Pink Sheet]
The above stocks are far too risky and volatile.
2] We WILL NOT trade any stock which trades less than $26.51 per share. We do not want to be part of any "pity party".
3] We WILL NOT trade any stock which has less than 400,000 shares/volume per day. Volume less than this makes the stock too risky and volatile for the retail trader. Those traders with deeper pockets [having more money] can trade stocks with less volume.
4] We WILL NOT trade any IPOs [Initial Public Offerings]. These stocks do not have any history to follow. They are far too risky.
5] We WILL NOT trade any stock with less than 18 months of trading history.
6] We WILL NOT trade against the trend.
7a] We WILL NOT trade any stock betwen the price of $45.01 to $55.51 up OR down. Stocks in this range are known as "the doldrums" - they have a tendency to get stuck and not move.
7b] We WILL NOT trade any stock from $73.01 to $76.51 another "doldrum range".
7c] We WILL NOT trade any stock from $94.01 to $106.51 - yet another "doldrum range".
D1] When we do our research, we check the following: The Earnings Announcement Date. This happens 4 times each year, about every 3 months. Different stocks have different EADs.
D2] We check for stock splits.
D3] We check the sector and the industry. We check for the trend in that stock's sector.
D4] We ALWAYS check the news for each stock.
F] When ALL the criteria and rules are met, Plan your trade. THEN trade your plan.
When you know the proper strategies, know how to use them AND you follow your rules, you can earn money when the stock goes up.
You can earn money when the stock goes down,
You can earn money when the stock goes sideways.
USUALLY numbers in the stock market are expressed in percentages and in dollars and cents.
Here's an example:
ABC is currently at $27.50 per share.
You did your investigating and research. This stock passed ALL your rules.
You have your entry at $27.78 or 1% to prove the stock's trend.
Your target is $30.56 or 10%
IF the trade should go against you and you lose money, you will get out of the trade at $25.56 or 8%. This is so you can trade another day.
As a foot note: We DO NOT put any more than 15% of our total trading account balance in any one trade. If our balance is $10,000 we do not put any more than $1,500 into any trade. Our entry is $27.78. We can buy 50 shares of ABC. For some reason or another, brokerrs and others like rounded off numbers of shares.
Thanks for asking your Q! I enjoyed answering it!
Yes, that is my real last name!Source(s): My wonderful family! My wonderful coaches and mentors! THE ABSOLUTE BEST, MOST wonderful trading group in the world, which I am most proud to be a member of! Trading more than 2 years. "THE University of Hard Knocks"
- Anonymous1 decade ago
You can buy a stock either through an investment account at a bank or other financial institution, or have your own stock broker directly.
Stocks are a % ownership of a company. Companies issue them to make money, it's like taking out a loan for corporations.
People buy stocks because they have one of the highest rates of return of any investment you can make, normally 10-15% annually.
- 1 decade ago
I buy it using my online brokerage account at Zecco.com
A stock is a share of a company. If the company makes a profit, you get a share of that profit. People buy stocks in the hopes that the price of the stock goes up and thus have the stock at a higher value than the price they paid for it.