Buy Or Sell – Making Profit With Stocks

In this economy people are always looking to find a way to make money. In the world of buying stock this is a possibility.

This is a risky way of investing as stocks fluctuate in price and timing is everything. You can finance this method with your own money or you can convince people to invest. This is more in the world of Wall Street or Canary Wharf.

Going back to basics, a stock is a “piece” of a company. the price of this piece is dependent on the companies success and profit levels. The better a company does, the more money it makes and the more the stock is worth.

Method Of Making Money – The methodology to making money in this industry is to buy low and sell high. There is never a sure fire way of knowing you have bought low and there is no sure fire way to know the price will increase in order to sell high.

however, if you have bought a stock at 10 cents and the company has performed well then the price could go up to 20 cents. you can then decide to sell. take the extra 10 cents you have earned and buy more stock. or you can stick and hope it increases more withe the risk of it decreasing again.

DIY vs Broker

Doing this yourself can be very time consuming. you need to monitor the market constantly, spot trends and hope you make the right decisions. You can however, use a broker who will do this for you but take a cut of the profits or charge a number of fee. This is quite complex to breakdown and there are many many brokers available out there.

There is also software you can use to schedule the prices you buy and sell at so you do not have to sit at your desk monitoring the fluctuations. It all comes down to the time you can commit and money you can spend.