Thursday, March 26, 2009

Watching the stock market?

There are a ton of stock's out there now that are known to be BIG. Such as Citigroup, in Sep. of '08 the stock's worth was at $20 a share, right now it is selling at $2.63. Colonial Bancgroup inc. (cnb) was at $8 six months ago, today it is selling at a mere $.92. Even if you have never traded stocks before, you can do so easily using sites such as Scottrade, Ameritrade or Etrade. Personally I prefer Scottrade, their site is easy to use and they are alway's there to answer my question's.

Okay, so here is a simple breakdown of what a stock purchase could look like:
You have $1,000.
You purchase stock (we'll use cnb from above) at $.92.
You have enough money to purchase 1,079 share's ($992.68 invested, I'm using Scottades rate of $7 per trade)
Every penny that this stock gain's you will gain $10.79. (Now, keep in mind that the same applies when a penny is lost, you loose $10.79)
If cnb can climb back up to $8 you could be looking at a stock worth $8632.

What is so great about this is that you don't have to have a ton of money! You can purchase a great stock for as little as $500. (and chance's are you won't loose as much as you have lost in purchasing lottery ticket's)
Now that the Government is stepping up and people are looking into our economy more, it's only a matter of time before thing's start picking up, so even if you see a small decline here and there the long term could still pay off so don't freak out.

There are no gaurantee's that you will make money in the stock market. Yes, you could loose your money, but if you were going to take a chance in stock's there is no better time than now.