Newbie Here - Is it really this simple?

Hi everyone,

I am absolutely brand new to online stock trading. I have been doing a lot of reading and I'd like to know if I have a basic understanding of buying and selling.

For example, I have my eye on a stock that I believe will grow substantially within the next ten years.

I would like to start very small and purchase around 133 shares @ $1.50 a piece. If I use a company like Scottrade I can purchase them for just $7 a trade, which would bring my total to $206.50. (Assuming it is truly $7 a trade and not $7 per share per trade...)

Regardless, let's say the company does grow and ten years from now 1 share is worth $100 nstead of the $1.50 I originally paid.

I can then sell my shares (all 133 of them) at $100 a share for a profit of $13,293. (Minus the $7 scottrade fee.)

Is it really that simple?

Buy low, sell high?

Thanks everyone, I'm looking to learn!

Cheers,
Cody

 

yes...if what you predict actually happens...yes its that simple. 10 years is a long time to forecast. Assuming you pay more attention to the market, you could increase your earning a lot by simply being aware of when the stock is trading for a high price and dumping it, then buying it back again after the price has fallen.

Yes, its that simple...but its also risky, and that's where it get complicated

 

If you can afford to lose the 206 bucks, why not?

Risk/Reward looks pretty good.

Welcome to the game.

Good luck!

JN

 

Cody, (btw the way I like that name for personal reasons)

Are you looking to be a trader or investor?

Are you looking to play a mugs game?

Is trading simple, and easy?

Yes, - Just as simple and easy as one chooses to make it. – However the fact remains most don’t – and a few of us take their money on a regular basis



Here are some additional facts to consider Sir


There are no experts in trading

There are no gurus

There are no simple answers, only simple questions

Anyone claims to know what the market will do – They are lying, and stupid

Anyone tells you they can teach you to trade – Yes anyone can be taught to trade in 5 minutes, or less

Anyone tells you they can teach you to be a trader – They are lying

On the outside looking in – things appear deceptively simple and easy

Trading is Gambling

Enter at you own risk, but enter cautiously and wisely


I truly hope you lose money on your first series of trades. (This seems mean on the surface, but I really have your best intrest in mind when I say this)


Regards Sir
Redneck