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| Author | Topic: Basic Investment Question |
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Chetan (Moderator) |
posted 10/28/05 5:46 PM
Hello Customer Service, - I have some general questions. I want to invest in intel and just buy a few stocks. Basically,Im a newbie, so if I buy 1 stock in the morning, how much fluctuation in the price is possible? Let's assume its about $0.500, then,is it possible to buy 500 stocks and sell them to gain a profit of $250 in one day? - That's my idea? - Tell me why/why not this plan will succeed? -thanks. Mr. Chetan Agnish - Thank You for your generous assistance. http://www.amateur-invest.com Money, stock invest, personal finance |
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R. Michael (Moderator) |
posted 10/28/05 5:56 PM
Hi Chetan. Thank you for your question. There are no easy or stupid questions - only stupid answers... - - Usually it is not a good idea to buy only a few stocks. The cost are too high. - - When you buy stocks, your broker or bank want a commission. - - For example: you buy 1 Intel stock - the price is (at the moment) USD 23. You have to pay your bank or broker USD 5 - so the total cost for you is USD 28. A month later, the price has gone up by 1 USD, so it is now USD 24. When you sell, you get USD 24, minus the 5 USD commission for selling. So the calculation is: You paid 28 and received 19 = USD -9. Even though the stock price went up. - - - If you had bought more stocks, lets say 100, the calculation is much better. 100 x 23 + 5 = 2305 USD in cost. And selling: 100 x 24 - 5 = 2395 USD in eanings. Now that way, you have gained (2395-2305) = USD 90. - - - Amateur Invest can help you do all these calculations. - Regards, R. Michael. http://www.amateur-invest.com Money, stock invest, personal finance [This message has been edited on 10/28/2005] |
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