ok, so it is about time I update
so first lets go over some basic stuff
1. In order to trade stocks you need a broker, until recently that meant paying a fee on every transaction, but now we have services like Robinhood which get rid of those fees.... in addition.. brokerage firms used to require a minimum investment... usually around $500-1000... on Robinhood (and other services like it) this is not an issue... you can invest a single dollar if you want... and there are stocks you can buy for less than a cent
2. In most cases the recommended practice is to buy low and sell high... this can be tricky, because when you buy you don't know if it will continue to swing down further, and the opposite goes for when you sell... the best way is to anticipate stock movements.. instead of investing as the market changes, anticipate something that will move the stock... This is why you should primarily invest in stocks that you know... for example, is netflix has been quiet, and their stock has dropped, but you know, as a fan, that some of the msot exciting shows are coming up, but haven;t yet been advertised... that might be a good time to buy... you should also work towards understanding a market in which you buy... I primarily trade in tech stocks... chip makers like amd and qualcomm, so I keep myself up to date on changes in that market... my dad invests primarily in pharmaceuticals.... like companies who make experimental drugs to treat Alzheimers or other such things. You might not want to invest in something you are TOO passionate about, because it can also effect your judgement... I would have likely lost a lot of money if I was able to invest in Nintendo... I get aboard the hype train too easily.
3. There are 2 other ways to make money on stocks besides selling high. While I have never played with short selling (basically predicting when a stock will tank), and cannot make suggestions, there are also dividends, which I have received. I owned 10 shares of Qualcomm stock (which I sold, but will likely rebuy), every quarter they pay their stock owners for owning stock... this is a dividend. In the case of Qualcomm, this quarter they paid me $4.80 for my 10 shares.... I bought my Qualcomm stock at just under $50 a share, and sold it at around $52, but kept it long enough (and during the right stretch of time) to qualify for dividends... so I made about $20 from selling the stock, and $4.80 from having had it... not all stocks pay dividends, but sometimes it is a great incentive to buy stable stocks... stable stocks wont make you a lot of money because their value does not wildly fluctuate, that, however, makes it a great place to store money with little risk, and if they pay dividends, than you get paid for keeping your money with them... kind of like interest from a bank, but more substantial. So look up stocks that pay healthy dividends, track their performance history, and buy them as low as you can... then consider keeping them for a while.
the stocks I actively watch:
Qualcomm (QCOM)
AMD (AMD)
Twitter (TWTR)(because it is my biggest mistake, but 1 share at $25, and it is still dropping... right now at $15, my pride makes me refuse to sell)
Netflix (NFLX)(if they ever give me press access I will probably have to stop)
I also keep an eye out for smaller tech companies that fit the needs of current demands, I invested in a low valued company and made a 50% profit because I was reading reports about how it's stock value made no sense since it had strong contracts as a parts manufacturer for major chip makers... I bought it, waited for stories about how it was accurately priced, and then sold it... this is an example of a stock within my field... I knew of the companies they had contracts with, but not about the company itself, they aren't interesting enough for me as a long term investment, but I could tell their stock was due to rise, so I bought, then sold when it seemed to be at a normal level... I don't track the company anymore, I don't need to.
