I am not very knowledagle about stocks. But I think I get the general concept. This is how it works right: You buy a share at lets say $5, and then when the share goes up, to liek $10 you can sell it, and get a $5 profit right? Is there anythign I should know, because I'm thinkinga bout putting $50 - $100 in a company that I think is going to rise soon (I know how that works), and when I get like a $50 profit I plan on selling those shares, is it that simple. Or is there anything I should know?
Keep in mind there are charges for trading stock. If you buy $100 in stock, it goes up to $150 you now have the $50 profit, but remember if will probably cost you $50 to make the buy, and sell it. You now have 0 profit. You can buy packages with some trading brokers if you're going to be trading a fair bit and get the trades for about $5-$7 each. $50-$100 in stock is fine if you're just starting out and you want to get your feet wet and see how it all works first hand. But if you actually are looking to make some money, you need to invest a lot more than $50-$100. When I first started with stocks I started with a $1000. The only thing worth buying with $50-$100 is penny stocks, even then that much money is still quite small.