How does e trade work?

Question

I got thinking about possibly getting into the e trade type of stuff. How do stocks work. My theroy is that if I buy STOCK A at 20 bucks a share and buy one stock and in two weeks it goes up to 25 bucks a share and I sell it i would have made five bucks. Is it that simple or is there more to it

Answer 1

Yes it's as simple as that in theory

No brokerage firm in the this country (especially E-Trade) will let you open an account for $20.

E-Trade works like another registered broker/dealer in the United States, all brokerage firms are subject to the same rules and regulations and they all have the same basic policies and operating procedures.

Before you buy any stock or make any type of investment you should learn what's it all about, because based on your question you are absolutely clueless.

Here some website for you, take a look at them, most provide investment/trading ideas, but more importantly all of them will give you some education which you desperately need.

http://moneycentral.msn.com/home.asp

http://finance.yahoo.com/

http://www.investors.com/?tn=top

http://www.rookiedaytrader.com/default.a...

http://investorshub.advfn.com/default.as...

http://www.thestreet.com

http://www.brokerage101.com/

http://www.1source4stocks.com/

http://www.decisionpoint.com/TAcourse/TA...

http://stockcharts.com/

http://www.grahaminvestor.com/

http://www.thestreet.com/

http://www.morningstar.com/

Answer 2

Take a year or more to learn investing/trading.  If it was that "easy" to make money...  everyone would be rich.

Start with;

Investing For Dummy's

Read & understand a few more books.  Open a brokerage account with a company geared to help the new investor;

Charles Schwab or

Fidelity Brokerage

If you want to get into active trading read;

Trading In The Zone, Mark Douglas

Mastering The Trade,  John Carter

Answer 3

basically, you have it right, but that is a 20+% return that is not that easy to come by.  What about the scenario that you buy at 20 and it goes to 15, that happens also.  You need to open up a brokerage account, and deposit $2,000 in that account.  Then you buy stock  and pay comissions, and hopefully make the 20% returns over and over again.  tba