Hey folks , newbie here from Toronto. I've been running my own business for nearly 10 years with a decent income and I would like to try trading stocks for added income and possibly a change of jobs in the future. I know the general idea and have a few thousand set aside that I don't need and can play with and even lose with no major consequence. So I guess I have a question or two on how this all works .. Let's say I like a company and buy 500 shares of their stock at $10 and pay $5,000 + a few dollars commission.. correct so far ? Let's assume in a few months the company does well and the share is $12.. Is selling my stock as simple as buying it and can I cash out without further consequences ? So I would sell my 500 shares at $12 and get $6000 in my account , I assume I have to pay the seller a % fee + another fee to actually see my money in my bank account ,, am I correct in assuming I made about $800 after fees and such ? + whatever taces I will have to pay on that $800 income Do I have it correct or am I missing something ? I'm sure there are a lot of other little factors but is this a general way of how stocks are traded on a small time basis. buy stock , pay a fee to buy around $5-10 sell it and pay a % commission + $100 .. I'm just using the above as an example to see if I have the theory correct. Thanks for any help..
Yes, that's basically how that works. Here are a few corrections: -- when you buy/sell a stock, you don't know who is on the other side of the transaction. The fees that you pay include the commission to the broker and various exchange fees. Typically, your broker will bundle all the fees into a single one (such as $10 to buy/sell up to 1000 shares) -- after you sell, the money typically stays in your brokerage account (so that you can continue to buy and sell), until you withdraw it.
I meant to post this in traders at the time I signed up and somehow it ended up here. I'm thinking of scots to try it out. I read the reviews and they were not too good but the problems seem not to be an issue at my level of trading.
If you make money on your trades you'll love scotts. If you don't yow will be like the rest of us who think their brokers are a bunch of fucking ass holes. Enjoy
Is there anything I shouldn't do that would get me in trouble ? is there anything wrong with buying stock in the morning and waiting a few hours and selling it ? is this looked upon as a bad thing in the industry, make 5% and run.
Did you just graduate from 3rd grade, geezus , i haven't asked this dumb of a question since I was in 2nd grade! ---------- additional trading questions I need help as well: a) When I sell something do I get the proceeds of the stock sale or does my aunt take the money from me? b) If I make money when selling something do I actually get to *keep* the money? *gasps* Other questions on my mind: c) when I go wash my hands in the bathroom, do I need to enter the bathroom or turn on the faucet to do so? d) If I wanted to sit on a chair, do I need to sit on it, or Do I automatically sit on it if I think about sitting on a chair?
Newbietoronto, With all respect, your questions indicate a complete lack of knowledge about the markets and the transactions being made in this arena. Do a search on the forums and see what recommendations other newbies have been given. You should start with reading some basic books. You will learn a lot. Use the forums to ask questions that you don`t find in the books or when you don`t understand a subject. Good luck!
Ok let me help you with an example in canadian tax system, you can find this easily on the internet as well: 1 - You buy 100 shares of stock XYZ at 10, for $1000 + comission (discount brokers usually $5) 2 - Stock goes up to $20, you decide to sell. you get 100 x 20 = $2000 - comission (also the same $5) So, besides the $5 comission, you don't have to pay anything else to go long (buy shares). If you decide to short sell (sell shares you don't have, you do this when you think the stock is going down instead of up), then, besides the comission, you have to pay interest to the broker you borrowed the shares, and that is usually the prime rate +1-2% per year, so not a big deal for short term trades. After you take your profit (or your loss), when you declare your taxes, this is what happen: 1 - If your funds are in a RRSP or TFSA, then you don't have to pay taxes (they are deferred on RRSP, and you already paid income taxes on TFSA). This is great, but also you don't get any benefit if you take a loss. 2 - If your funds are on a margin account, 50% of your profits are tax-free, the remaining 50% you have to pay capital gains (depends on your province and tax bracket). Also, if you have losses, you only get to discount 50% of it. Another thing in Canada is that, depending on your province, you have some dividend benefits, like in BC, so check that out too. 3 - It sounds like you are ready to lose this $5000 and it is not a big deal, but remember that if you play in the stock market with this mindset, you will not be very successful, it will be pure gamble. Always know what you are doing before trying it. 4 - On your margin account, your broker will let you play with more than you actually have (2-3 times more). This leverage is what kill you fast, because you are inexperienced and think it's. It is not easy. Good luck!
ok buddy when you're done rimming your nigger mothers asshole maybe you can move over to your father the german sheppard and give him one too.. dumb fuck