I'm very much curious in how the traders on this bullentin board make money. I have read when some of you have brought a stock at .10 and sold a few days later at 14 or 15. I don't get how you make a profit when you pay anywhere from $7-$15 just to purchase the stock and then sell it a few days later.
On a $7 trade for example you spent $7 to purchase and lets say sell it a week later at $7 again for the trade thats a total of $14 dollars just on trades. I would think you have to make the $14 plus any profit before you sell. I don't get how you guys do it .
Can anybody explain to me as a person that is new and is looking to get in about to open an account and start trading how or you make money when you are selling below the commisiion charges.
Can anyone tell me.
Thanks and Happy Investing Manny
Volred
posted
quote:Originally posted by MANNY9: Hello
I'm very much curious in how the traders on this bullentin board make money. I have read when some of you have brought a stock at .10 and sold a few days later at 14 or 15. I don't get how you make a profit when you pay anywhere from $7-$15 just to purchase the stock and then sell it a few days later.
On a $7 trade for example you spent $7 to purchase and lets say sell it a week later at $7 again for the trade thats a total of $14 dollars just on trades. I would think you have to make the $14 plus any profit before you sell. I don't get how you guys do it .
Can anybody explain to me as a person that is new and is looking to get in about to open an account and start trading how or you make money when you are selling below the commisiion charges.
Can anyone tell me.
Thanks and Happy Investing Manny
They buy not one stock at 0.10 but 10,000 stocks at 0.10. The cost of this transaction is $1,000 + 7 for the cost of buying stocks.
In a few days they sell the 10,000 shares at 0.14 to make $1,400 subtract $14 for the cost of trading. And walk away with 386 extra dollars. Then they buy an ipod.
Raptorsrule
posted
You buy lots of shares.....For example...the trade fees at Ameritrade are a flat rate of 10.99. For any amount of shares. 10000 shares at .10 = $1000. A sell at .18 would yield $1800 less an additional 10.99 in trade fees.
Raptorsrule
posted
Ya beat me to it Volred...LOL
MANNY9
posted
Thank Guys
for your replies...I see that you have to purchase in large amounts to profit better.
It would not profit anyone if the purchase lets say 100-200 shares with a trade commission total of 14.00 when you purchase and sold the shares.
Manny
yes
posted
quote:Originally posted by MANNY9: Hello
I'm very much curious in how the traders on this bullentin board make money. I have read when some of you have brought a stock at .10 and sold a few days later at 14 or 15. I don't get how you make a profit when you pay anywhere from $7-$15 just to purchase the stock and then sell it a few days later.
On a $7 trade for example you spent $7 to purchase and lets say sell it a week later at $7 again for the trade thats a total of $14 dollars just on trades. I would think you have to make the $14 plus any profit before you sell. I don't get how you guys do it .
Can anybody explain to me as a person that is new and is looking to get in about to open an account and start trading how or you make money when you are selling below the commisiion charges.
Can anyone tell me.
Thanks and Happy Investing Manny
Yup, just to profit at all on a .10 cent stock with a .01 proft, you'd need 5000 shares, or $500 worth of stock...and most brokerages require at least $500 to open an account -- Scottrade is $500, Ameritrade is $2000 I believe, Freetrades requires $5000 and 2 years experience...dunno about any others
posted