Quote:
Originally Posted by silviasandbeer
so I've been seriously considering getting my feet wet in the stock market and playing around to make some money on the side
chipotle and takatas stock have taken a tremendous hit (for obvious reasons)
chipotle is at 487 or so and takata is 13.3
so would it be wise to buy shares of each company while its very cheap and sell once their stock goes back up?? to make a profit
or am i totally misunderstanding how the market works lol
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That the general idea but just remember stocks can go down as well as up. The best advice is to stay up on your stocks semi weekly. Not just what the company wants to tell you, news articles, etc. I can't emphasize staying up on stocks enough. Find out where their HQ is and check up for local news about them. If you buy in and the stock hasn't bottomed and it continues to decline you could be upside down quickly and be waiting a while to see any return. Also don't be afraid to sell. People sometimes get stuck thinking "well it's just going to keep going up" or "just a few more dollars and I'll sell" then a ton of other people sell and you watch the price drop while you're waiting for it to go back up.
Whenever buying or selling ALWAYS use limit orders.
Also stay up on stocks that are "in the same boat" as yours. Apple's chip makers/suppliers are an example sometimes you can gain a better overall perspective of what's happening if you look at the other players in your game.