Making money from Stock?

Question

Does it boil down to buying the stocks as cheap as possible, keeping an hourly watch on its price, and selling it quick when its price rises?

I think making money from stock is not a rocket science. It probably takes diligence, quick actions, and some luck. Being smart would help, but not necessary.

Please advise without making it more complicated than necessary.

Answer 1

I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you to diversify your money and become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.

Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthless”

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.

I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin… That´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.

The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker, not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open, that means: if you are buying or selling short a 1000 shares per transaction, you´ll make $1000,$2000,$3000,$5000 or $7000 Usd "IN MINUTES !!!" not in a day, not in a week, not in a month or in a year, in less than 60 minutes... That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on for hours on how to make money trading online, but if you ask me:

"What is your best advise?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get by yourself the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen.

www.onehourtrading.com

After you review this site you won´t need any system, strategy, book, software, guru or mentor to tell you what to do, you will be able to profit HUGE every day.

Besides, you´ll learn:

• The right amount of money to start trading…

• The best Online broker out there…

• Learn how to enter and exit a trade in seconds making Huge profits…

• Make more money than most day traders simply by trading one hour a day!!!

• How to reduce stress, limit risk and stay disciplined like a Pro.

• The 4 basic rules you should know, that every successful trader know, and amateurs don´t even imagine.

• How to trade against the amateurs and avoid like the plague doing it against the professionals , and why this will put you ONE STEP AHEAD of all traders.

• What causes more devastating trading loses than any other factor... and... How to avoid this pitfall! (Even savvy traders often fall victim to this! )

• Not to spend most of your day in front of a computer dealing with complex charts, software or technical analysis.

• Learn how to read the market´s open to make a huge profit just a few minutes after the opening bell.

All this and a lot more…

Good luck and good trading,

John Fontaine

Answer 2

two ways - you can buy low and sell high (bulls)

or you can sell high and buy back low (bears)

the stock saying is

Bulls get paid

Bears get paid

Hogs get slaughtered (don't get greedy)

my forays into stock have been disasterous

and no - some you hold for weeks or months

then sell - one guy bought a utility stock in California

2 years ago for $4/ea share - now around 80

why sell - keep it growing

so I have a new venture

all the best

Answer 3

If it is Indian Stock Market, it has many a factors governing the strength of it. It could be trends in asian markets, previous close of the us markets and oil index etc., it is always suggestible to take views and opinions of others before investing. you can go through various sites providing such information as could be beneficial to you and others entering in the arena. you can use the services offered by www.sensexcontrol.in for the purpose.

Answer 4

You are right. All you need is the confidence. That eventually that human beings where ever they are will keep progressing, when that happens normally stocks where ever will do well.

Answer 5

This is a very big subject, but I'll try to summarize the basics...

The most common method of buying stock is just as you say, buy low, sell high. If you're a day-trader you might hold the stock for as little as a few minutes, if you're a long-term investor then you might hold it for years.

If you think a stock price is going to go down instead of up then you might choose to short it instead. In this case you borrow some stock from your broker and sell it on the market immediately. You then wait for the price to drop and buy it back at the lower price. You give the stock back to your broker and keep whatever profit you (hopefully) made.

It may seem like gambling, but even short-term traders play a valuable role in the stock market. Ordinarily, stocks would have a very high level of volatility i.e. the price would jump around all over the place and react strongly to even small events. These fluctuations are opportunities for investor to make money, so when short-term traders jump into the market it has an overall effect of injecting some stability to the price. What they're effectively doing is making profit in return for assuming some of the risk associated with those fluctuations.

Overall the US stock markets have averaged about 12% growth per year (I think...don't quote me on the exact figure). This ultimately filters down to everyone as profits in their market trading, so stock trading is, in theory at least, genuine investment. This is in contrast to things like futures trading which are basically the same as playing roulette...the futures don't generate any profit so you have an equal number of winners and losers.

Answer 6

This "INVESTMENT GUIDE" is more helpful for you to make your money to make money for you,without taking any risk.

To gain more information TO MAKE MONEY FROM STOCKS EVEN WITH LITTLE INVESTMENT,just gothrough the site http://www.savings4future.com .........

GOOD LUCK

Answer 7

I'll assume from your question that you're either talking about "swing trading" or "day trading"............

95% of stock "traders" fail rather quickly. The few  that "make it" take, on average 3 years.

It is nowhere as simple as you suggest. If it was everyone would be doing it.

No, it's not "rocket science". It can be learned (up to the point it becomes an "art").  There are two parts to trading;

Picking the trade

Managing the trade (stops, entry points, exit plan, win loss ratios, position sizing.... etc).

Many traders consider the stock pick secondary to money management.

Many (like me) are constantly going to seminars, webinars and reading books on trading.  It is very hard work.

I try to read a book a month on trading. Here's two that may open your eyes to the subject;

Trading In The Zone, Mark Douglas

Mastering The  Trade, John Carter

Also, about three hours after market close...... Watch the market wrap up on;

http://www.alphatrends.net/  (I do every night).................

Answer 8

Hourly monitoring is only necessary for stock speculation.  Investing depends on trends over weeks, months and years.  If your stock prices are changing whole dollars hourly, you are speculating, or your stocks have become unusually volatile.  That is normal for a volatile economic segment, but not for most.  

High tech industries can be considered volatile.  Capital goods manufacturing is not.  Insurance and transportation are not usually.  

If you are dependent upon quick actions (within an hour of a change), you are speculating.  If you blink or take a long lunch, expect to be burned.  If you are speculating, cheapness at purchase is of NO concern, only that you strike at selling at a higher price than you purchased.  Volatile stocks have little jumps all the time.  Some of the sophisticated software aids for speculators help manage transactions in that environment.  I'm referring to the ones advertised on late-night television.  I have no names and no recommendations.

Answer 9

you are right