What is a Stock & How YOU Make Money in the Market...
★ SUMMARY ★
Are you struggling to understand what is the stock? how the stock market works? or how you can make money from the stock market?
In this video I will share with you the basics behind how a company issues stock, how money is made in the stock market, and how you can profit from trading stocks.
Stock is simply a piece of the company and you get a share. Has to shares are exchanged or traded over time the value of them fluctuates over also changes. If you are able to buy stocks of companies at a lower price in one year and then hold it over time for multiple years and sell it at a higher price than you make a profit and this is where it comes into the investment side.
Investing in stocks is similar to investing in a home or in real estate. If you can buy a house at a cheaper price in one year with time that house value should go up and appreciate and then later on you can sell it for more money capitalizing and profiting from the difference.
In this video may share with you some calculations about how a company can sell stock to investors and therefore use that capital to grow the company.
All the examples that we will cover will help you see the bigger picture of how the market works based on the last price principal and how you can use it to your advantage to make more money.
Posted at: http://tradersfly.com/2016/12/what-is-a-stock/
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so basically, we make profit when the company's stock goes up. then, when the company stock goes up, we get to sell our stock for a little more expensive price to make profit? do we get the money physically, digitally, or...?
Damn I gotta spend almost 10k just to hopefully make $205 in profit? When I was in high school I would buy and resell items and weekly (and daily depending if students had money those days) I’d make over half of what I spent.
How do they decide the number of shares? What's the difference between profit shares and normal shares? Is the value of the company the equity it has or anything else? It would be great if you talk about this. Or comment about this. Thanks!
if you own a company you might decide to create 10,000 shares or 50,000 shares or 5 million shares on paper depending on the demand. if you just have a local company it's probably silly to have 10 million shares to distribute among your family and friends since you just need to add more zeros if you're looking for 10% of the company were 20% of the company to a close friend. So instead with smaller companies you might just look at having 1000 shares instead is because it's easier dealing with the numbers.
So I have 9 shares of tesla. I bought them right after elon musk took a puff of weed at 260 a share, its standing around 290 now. Should I sell my shares and use that money somewhere else before his company goes downhill with this investigation thing going on?
I'm using the stock simulator on investopedia.
This one of course depend on your personal goal and your personal investment style and strategy. Everyone's risk tolerance is different so it's hard to advise you on what to do. You'll need to make that decision on your own depending on your plan or the risks you're willing to take
Sasha Evdakov thanks so this system is for any price stock. I really caught on to this teaching it’s was a huge help. So you just multiply the new stock increase by how many shares you bought and that gives you the increase. So you have to hope that company grows in the share price buying 1 share isn’t going to make nothing. And these penny’s stocks are not worth it either
Wait, so everyone buys a share. The company doesn't have money. Now it does, USD1000. Won't the shares go down while you spend money on advertisement, employees, sales trips, etc...and then maybe go up?
Depends. As people invest, the company raises that investment as capital to be used to create new products and services. They could also hire people and pay them for intelligent inventions that could make a killing. They use the money for ads and/ or buying other companies out.
Now if a company sees success in convincing people to pay then everyone makes money according to their investment. However, should the company not make money and the ads or horrible or hire the wrong people then yes they could lose money. That’s the risk everyone is taking.
Imagine a pie, if everybody has an equal piece that is like the stock when somebody cashes out that stock becomes available and can cause the stocks to go up and down if you bought stock at Apple let's say $5000 and you waited a year and it is now at $30000 you might want to cash out where they now will sell the stock and give you the thirty grand thus making you richer and causing the price per share to go up or down which is unknown. If you have ever watched wolf of wall Street it will show that the stock market is very risky and you need to find the perfect stock and don't become addicted.
Alexis Hernan i would think that there is no "unusual trend" for any specific company. If 5 companies can expect share values to drop and rise every 2 months, but company 6 can expect share values to drop and rise every 6 months, that company's trend may be unusual in comparison to the others but its trend is not unusual for company 6 as that is the trend, or the habits of your late friend
Yea but your investment is a income you don’t have to work for.. say you stay making that 200 a day and the 10,000 you have saved up is also out there making money for you. Now you have two streams of income
But isn't actually the same stock? You buy a stock in "growth" mode, which means you won't get dividends any time soon, but the same stock might start paying dividends when the company reaches certain point of maturity. That is, a growth stock automatically becomes a dividend stock, right?
I want to ask whether or not the value of the company(market cap) can directly affect the stock price or shares that i bought? Brief background, Im torned between dividend investing and growth investing; some expert dont believe in dividend paying stocks if i will be investing in a company that dont pay dividend what is the point the only thing that make sense is when the money they make will be reinvested back to the company hence increasing their market cap,thats why i ask the question above so that you may can enlighten me.
Yes companies like Amazon the stocks would have went up a lot because of expansion and you can cash out whenever you want and when you cash out. Like say you bought $5,000 from Apple and 5 years later is now worth $150,000 you have the decision if you want to cash out and that's when you get the cheque. You can do this whenever you want
Sasha Evdakov I get that but originally why would someone want a dead piece of percentage of ownership of a company. Where they are NOT getting paid from. originally when this first started why would someone buy that stock from them.
Hi Sasha! the video is great. I am piggy backing on Moaad's question for clarity. So, once the stock appreciates, in order to get the profit/difference, I have to sell the stock? Am I able to just get the difference and leave the rest in the market?
so for example, they use investors money for advertisement, thus more people know about the companies products and buy them, the company makes more money, thus creating a higher company value, which means your shares are worth more :) (put very simply)
You said that if it's a public company it's probably easy to get in or out, but I still don't understand why someone would buy a share that is exponentially more expensive that what it was. Wouldn't everyone just wait until stuff crashes and burns to buy the stocks at a cheaper price? Maybe I'm missing something here.
thanks for the vid Sasha!
Can I ask a question? I've been watching your videos randomly for 6 months now as I'm slowly learning about trading. I enjoy your videos and you seem quite knowledgeable. I just read a review about you and your books, and afew people are saying that you don't actually trade yourself? Is this true? Was abit surprised to read this, but the people also said your quite open about the fact that you don't trade at all. Never seen this before but am interested in knowing 😀
Hey Sasha, Happy holidays :^)
also trading shares on Margin is pretty good, i get 1000 shares for 5% margin - 10$ pips.. only con is the Swap :^(
something i have learned trading stocks on Margin, positions are not really meant to be held long term.. i have been holding onto some Starbucks positions for about 10 months now, total 5 lots - 5000 shares, 4 positions..
LOL 1 position, from Feb/9/2016 - till today, the Swap has reached 5.975$ ..while the position is making only 2.800$..
Uploading contracts to an online database should not take too long, and with the right solution, there should be a way to quickly drag and drop them into folders. Of course, the contract management team may want to give some thought as to how those folders are categorized. In some industries, it may make sense to classify them by agreement type, whereas in others they may need to be grouped by timeframe or date. It is obviously important to do what makes sense for your company and to ensure everyone understands the classification system that is instituted. With this sort of well-oiled system in place, it is a lot easier to keep a handle on things.
Divide and Conquer.
This is another area that is very industry-dependent, but it is highly unlikely that any company can afford to have an entire contract team devoted to managing one portfolio. More than likely, it is more realistic to divvy up the team and the contracts so that there is a leader for each relevant sphere. The entire team will obviously have to coordinate and communicate, but resources must be allocated in the most efficient manner possible. In turn, this will allow for several individuals to keep an eye on a smaller batch of contracts, thereby facilitating those periodic reviews.
Outsource the Tedium to Technology.