How do I earn $30,000 in the stock Market with only $1000 in 12 months? Can it be done?
Well, it is possible. Extremely risky though. You want to look for volatility in cheap stocks. Obviously you want to buy low sell high, or sell high buy low. Watch a couple of stocks closely and learn everything you can about them. Be checking them every single day multiple times a day. There are websites that alert people via their newsletter about a stock (usually penny stocks) to buy. The email (a couple times a month) typically says something like this: "We have a hot stock, we will release the details tomorrow at 9am" And then it gives a bunch bogus fake information on why you should buy it. What they do is basically a pump and dump. The next morning they announce the "hot stock" (which they already have shares of). People believe the BS and start to buy. You want to wait until the stock hits the peak then you short it because i've noticed the price always goes back down within a few days. Boom, you just shorted a stock and made 5-20% in one trade.
Can 1000 dollars get me anywhere in stock market?
Yahoo is starting to have yet another problem with spammers and bots. They just about shut down the chat rooms because of it. For your question, $10,000 is about the minimum I would start with if I were trading individual stocks. Anything less, and the commissions eat up too much of your profits to be worth the risk. If you can put the money into a Roth IRA, you might be able to find a few mutual funds that let you get in with $1,000, and there are plenty that will let you join them with $5,000. But, before you start investing: 1) Pay off any debts you have. Preventing a debt from growing counts just as much as making a gain from stock going up. But, there's no risk or uncertainty. If you don't owe Visa, I'm certain you won't pay interest. 2) Have a big emergency fund (6 month's expenses, cash in the bank.) I know us guys don't like the idea of having money sitting idle when there's so much to be made in the stock market. But it's a lesson I learned the hard way, when I lost my job and didn't have any savings. Ramen noodles taste like ****, but at 18 cents a meal, it was all I could afford. 3) Once you have 1 and 2 covered, then we can start investing excess money.
How earnings in the stock market get taxed?
Interest income on anything is taxed at your normal tax bracket, but you only have to pay federal and state tax, not social security or medicare tax. Dividends are tax at your normal tax bracket, except for qualified dividends, which are taxed at maximum of 15% (5% for those in 10% or 15% bracket), and you have to pay federal and state tax, but not social security or medicare tax. Capital gains can be either short term (security sold with owning it for less than 1 year), which is taxed at your regular tax bracket, and are only subject to federal and state tax, not social security or medicare tax. Long term capital gains (security sold with owning it for 1 year or longer, except for inherited securities which are treated as long-term no matter what the holding period) are taxed at maximum of 15% (5% for those in 10% or 15% bracket), and are only subject to federal and state income taxes, but not social security or medicare tax. Earned income is basically what is subject to social security and medicare taxes, and is basically wages, or self employment income through a Schedule C or F business. Unearned income (interest, dividends, capital gains, social security, IRA, pension, state tax refunds, etc) are not subject to social security or medicare taxes. If you made $100 in the stock market and were in the 25% tax bracket, and sold the stock with owning it less than 1 year, it would be short term gain, and would taxed at the 25% level, so you would end up with $75 after taxes.
How do you make money from the stock market?
You can buy and sell stocks through an online broker (E-Trade, TDAmeritrade, Scottrade). A company's stock does not always reflect the performance of the company itself, and vice versa. If you buy stock and the company's stock price drops, it can keep going down, but you only lose everything you invested. Let's say the stock price for Yahoo is $40.00 per share. If you buy $1000 worth of Yahoo stock and the stock drops to $0.00, you only lose the $1,000 you invested. There is a strategy where you can make money when the stock price goes down; it's called short selling. You essentially sell shares you don't own, and buy back hoping the price goes down and make a profit. If you short sell and the price goes up, you can owe an infinite amount of money (depending on how high the price goes). Beginners should not short sell. Focus on buying quality stocks.
What is a good way to invest 1000 dollars?
Good for you sistuh. Now that the market affords you this 50% off sale so to speak, as an investor myself I would buy only stocks that pay dividends. When you buy those stocks and use your dividends to automatically buy more stock, you avoid brokers fees, its automatic so you don't dwell on it, it is dollar cost averaging (which means you buy when it is up or when it is down, but you are always buying and it averages out) , dividends are like free money, you do not pay capitol gains tax until you sell, and stocks historically in the long run out perform the other options. History does have a tendency to repeat itself. I would begin with a mutual fund that invests in dividend paying stocks. American Century has a bunch of funds Fidelity has a bunch Get a long term growth fund with solid dividend paying companies in it. Johnson and Johnson, IBM, McDonalds. Search on Yahoo search engine "dividend paying funds" and don't look back. Buy a stock fund and you are buying a manager that puts your money where you want it. In dividend paying stocks. Like me you won't regret it. I retired at 53 and am enjoying the fruits. Don't buy at the top. Don't sell at the bottom. Slow and steady wins the race. Neither a borrower nor lender be. You can become more aggressive as you learn and become more adept. You go girl.
I have about 500-1000 dollars every month to invest, what should I do with it?
First of all, GREAT JOB on maxing out your 401(k)! Not many people can achieve that - very impressive. My advice assumes you have no debt (if you do, it should be paid off before any investment activity). Unless you'll need the money sooner, I would recommend opening a Roth IRA and maxing your contribution. In 2008, you can contribute up to $5,000, which works out to $416/month (or, if you're starting now, you have 10 months - you can make 2008 contributions through April 15, 2009 - which would be $500/month). I personally enjoy the convenience of mutual funds - they do all the stock picking, and they will also set up automatic monthly investments from your checking or savings account. If you go this route, pick a solid fund company like Vanguard, T. Rowe Price, or Fidelity. It sounds like you might want to take a more "hands-on" approach. You can still set up a stock trading account in an IRA (preferably Roth at your age) - again, only if you won't be needing that $$ before retirement. But be sure to follow the golden rules so that you don't lose too much money: 1. Never have more than 10% of your portfolio in any one stock (I prefer 5%, but 10% at the absolute maximum). 2. Always place a stop-limit order for 10% below your purchase price, so that you cut your losses when a stock tanks. I hope that helps. Good luck!