Oct 4, 2008 - 
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Goals No Comments Make A Few Bucks In The Stock Market
You’ve heard the conventional ways to invest in the stock market; buy and hold, 401K, blue chips, etc., but there is a way to make some extra income without investing alot of money or leaving it tied up for an extended period of time.
I would like to preface this with the fact that no technique is 100% effective, and this is no exception. I take no resposibility for any potential losses.
That said, this is what you do: Open an account with any online broker. I won’t recommend one-anyone that suits your preferences will do. Let’s say you want to buy 500 shares of some company. Look for a company that is dropping early-not because of bad news, just a stock that is selling lower that day. At a certain time the stock will bottom out, and will recover to a certain extent that day. For example, company A opens lower and drops to say, $2.00. That would say be a .10 decline. Somewhere around 10AM Eastern time, stocks tend to be at a lull, and many are at their lowest point of the day. That’s when you buy. In our example you would purchase 500 shares of company A at $2.00. That’s a total cost of $1000. Now with that 500 shares you will make $5 for every penny the stock rises. All you have to do is sell the stock at market price first thing in the morning. Many stocks have a spike first thing in the morning, and if you sell company A at market price in the morning, there is a good chance you will make $20 or more.
That’s a small example obviously, but the principle is the same no matter how much you buy. Stocks tend to drop at a certain point during the day, and spike (however small) in the morning. No, it won’t happen every time, but it happens enough that you can make a few bucks. Try it before you actually invest money, and see how much you can make in a week or so. Investopedia has a stock simulator where you can try this technique.
Again, no technique is 100%, but this works a good percentage of the time.
Technorati Tags: Stock Market, money, investing
I would like to preface this with the fact that no technique is 100% effective, and this is no exception. I take no resposibility for any potential losses.
That said, this is what you do: Open an account with any online broker. I won’t recommend one-anyone that suits your preferences will do. Let’s say you want to buy 500 shares of some company. Look for a company that is dropping early-not because of bad news, just a stock that is selling lower that day. At a certain time the stock will bottom out, and will recover to a certain extent that day. For example, company A opens lower and drops to say, $2.00. That would say be a .10 decline. Somewhere around 10AM Eastern time, stocks tend to be at a lull, and many are at their lowest point of the day. That’s when you buy. In our example you would purchase 500 shares of company A at $2.00. That’s a total cost of $1000. Now with that 500 shares you will make $5 for every penny the stock rises. All you have to do is sell the stock at market price first thing in the morning. Many stocks have a spike first thing in the morning, and if you sell company A at market price in the morning, there is a good chance you will make $20 or more.
That’s a small example obviously, but the principle is the same no matter how much you buy. Stocks tend to drop at a certain point during the day, and spike (however small) in the morning. No, it won’t happen every time, but it happens enough that you can make a few bucks. Try it before you actually invest money, and see how much you can make in a week or so. Investopedia has a stock simulator where you can try this technique.
Again, no technique is 100%, but this works a good percentage of the time.
Technorati Tags: Stock Market, money, investing