Some tips about buying/selling stocks?

Answers:2   |   LastUpdateAt:2012-09-07 11:08:03  

Question
Gee
Asked at 2012-07-15 05:15:02
I've never changed before. I'm thinking of opening an account with Charles Schwab and do some stock trading . This is what I am confused about . That's how I thought it worked. A hypothetical situation. You buy 20 shares of a company for $ 10/share of example.10 * 20 = 200 . The next day , the price rises by 20%. 200 * 1.2 = 240 ? right. Now if we pay say $ 18 it cost to buy and sell. 40 to 18 , make $ 22 . Is there something I misunderstood about the actions due to the offices of my friend for a year, and when the stock price rose 25 % to a company , I told him to sell and buy back later. He says that does not work that way. Who is right ? If he or I?
Answer1osoAnswered at 2012-07-30 05:03:57
Most of what you write is true. The exception is the idea that an action would increase by 20 % in the coming days . If it were easy , nobody even start a business. People were jumping up and buy a stock , set your mind to sell 20 %. The reality is that the stock price may drop and will happen the next day, hoping that back up. If your friend sells the shares and does not drop, then buying new would cost more. Their actions are called pipeline strains are the only stocks that you can do that . Channeling action is an action that has a history of going up and down with a range for some time , a person can predict or expect it to continue . The other pattern that can be if the Dow Jones is the channeling and the population is following the DOW. However, there are historical data of the population, but the market data. Maybe your friend wants more, but not worth it to sell a stock simply by buying back when the same population could generate the extra points you want. 25% drop is a victory and not a guarantee that no one will ever see again or at least in the short term.
Answer2Debra JacksonAnswered at 2012-09-07 11:08:03
Business stock market is very simple but very difficult to be buying and selling to each fall very jump.
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