Friday, November 20, 2009

How does somebody working from 9am-5pm earn some extra money buying and selling shares on the stock exchange?

I have been buying and selling shares on the London and New York Stock exchange for some time. By the time you make a small gain on the shares going up you have made a loss because you have paid £15 to buy the shares and £15 to sell them. I have looked at stock on the FTSE 100 and AIM (Alternative Investment Market).I have looked at bonds,government bonds,futures and options. i have even looked at spreadbetting to cover different ground when you can make money when shares go down as well as up. i have studied bull and bear markets all year round,commoditites and big picture events. i have even looked at the shares from a different angle by looking into Hedge funds and hedge fund managers.I have studied past performance from graphs to determine what would happen to certain stocks in the future.Warren Buffett the second richest man in the world has even come across my research. All i want to know is how do you make small amounts of money investing in the right stocks,so u can progress?

How does somebody working from 9am-5pm earn some extra money buying and selling shares on the stock exchange?
day trading and swing trading as you have defined your strategy is best done with fairly large positions 1000 shares and up. Below that number the incremental gains as you have found out are eaten by commisions not to mention your loosing positons.





If you do not have the capital to due 1000 share bets, you are better off riding long term trends--3 months and beyond. Give your bets a chance. This is also a better stategy for 9 to 5 ers because you do not have to spend company time all day watching the markets. 3 times a day will be sufficient. Your employer will also appreciate that.
Reply:Cut back on your stock trading as much as you can. Buy only the best stocks you can find. And hold them for many years, the way Warren Buffet has been doing.





Only this way will you save a lot of money on transaction fees and income tax. You don't pay any tax on your gains until you sell the shares that you own. And if you hold these shares for 30 years, then that's how long you don't pay any taxes on any increase in value these shares may have.
Reply:TD Ameritrade is 9 dollars per trade up to 1000 shares.............cheaper.........there are also deals where you pay a certain amount per month, no matter what amount of trades you do..............


Pick up........THE LITTLE BOOK THAT BEATS THE MARKET...............and follow it with part of your investment funds....if it works, you will make 30% per year..........If you want risk, and bigger return, try bridge loans......you are one of the lenders..you can make a lot of $$$$$$$$$$$
Reply:1st of all you should not be aiming to make "some extra" money but at a specific amount - at least what you get in your job because the sub conscious part of the brain will only allow actions that work toward a priority and 1p profit will be "some extra". If you want to learn more of the psychology of trading Greg Secher will be at a seminar in London 8th Sept. For those who live in the USA there is a big seminar 15-17 Sept or Money Masters do regular events to cover renting out shares %26amp; other ways to make money in UK 6-9 Oct and in USA regularly as does Frank Garon.
Reply:find a top quality financial adviser who will recommend good quality shares which should be kept for the long term, ie 5yrs. in order for gains to be significant. It is not possible to gauge the market as the slightest anxiety or expectation can turn it suddenly. Instead of buying single company shares, it is better to have tried and tested funds which have a variety of hand picked and managed shares. Over the last two years I have had a 30% return on the fund I researched. I use Edward Jones Financial advisers based in US, I'm in UK. Everything is researched and they only use tried a trusted fund managers. You pay a fee on buying a fund and then 11/2% pa management fee, so not too expensive. They provide a balanced portfolio including Bonds. They assess your needs and expectations. First interview is free so you can decide if its for you.
Reply:If you earn $20000 or more you can invest $300 each quarter. Buy but do not sell. This makes you an investor and not a speculator. Pick stocks paying a good dividend, well covered by earnings, and with a history of being increased. Reinvest the dividends and add more. Hope that the stock price goes DOWN so that your purchases will produce more shares and thus greater future dividends. There are brokerages dealing in U.S. stocks and ADRs that charge little in commissions. One coming to mind is Scottrade. What is important is that investing makes one well to do. Speculating loses about as much as it wins,minus trade costs. This is what I did after a moderately successful speculating period. Believe me, it worked.
Reply:I assume that you're a single person. Thus, you can save up fair amount of money regularly. If you can't, then investing in the stock market is the least of your concern. Now, assuming you can set, say, 500 dollar aside per month, you can start dollar cost averaging into your favourite stock. Treat that process as saving. You don't take money out. Keep them invested. Let the power of compound interest work for you. With your background, I assume you know how to pick stocks.


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