(Nov 15, 2014 09:30 PM)STR™ Wrote:  You shared all your experience and earning methods , you are Highly HQ
Looking forward to be in touch with you on skype to get more advises sir , Highly respect you sir

(Nov 15, 2014 10:25 PM)lucida Wrote:  Thoughts on DKS? Bought 100 shares few days ago, planning on selling after earnings

Also, what are your thoughts on the future of gold

(Nov 8, 2014 09:47 PM)Enronitis Wrote:  Yes this is true, but only if you are in the lower end of the tax brackets as far as I'm aware
I'll have to check up on exactly how much/how little you need to make to qualify but the number in my head is about $40,000; meaning if you make less than that per year in taxable income you can have 0% tax on the gains.
So, this is generally applicable and can be used to the advantage of younger investors whom only have part time jobs or don't make much over a year

(Dec 4, 2014 07:56 PM)Cryptic v7 Wrote:  Great information, much more than by Economics teacher was able to provide. :)

I'm a bit confused when it comes to 'short selling' and 'dividends' though. I do not understand how you can sell a stock that you don't have, and simply borrow one from your broker and sell it right away. How are you making a profit? What if your broker doesn't have a share? Or does he give you a loan in order for you to buy a share?

And dividends.. How do you find companies that give out dividends? Why do they do it if they are losing money? Do companies that give out dividends generally have higher stock prices?

Thanks.

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If you had your parents set up a portfolio for you because you aren't 18 yet, would it be based off of their income? I just got a part-time job. (please correct me if I aren't using these terms correctly)

(Dec 4, 2014 08:25 PM)Enronitis Wrote:  Lots of questions, I love it! Shows someone who's actually thinking.
Short-selling is a concept that confuses a lot of people, I'll give it my best shot to explain it to you.
So, say stock (X) is $100 right?
You go to your broker and say: "YO DAWG, STOCK X IS PRETTY RAD AND ALL..BUT I DON'T WANT TO BUY THEM MAN, HOWS BOUT YOU BUY THEM FOR ME IGHT..ILL PAY YOU BACK THE SHARE WORTH, I SWEAR."
So, Mr. Brokerman gives you one share on loan of Stock(X), and technically it's been "sold"
And what do you know, Stock(X) goes down to $50 in 2 days because Stock(X)'s CEO was found sleeping with Kanye West.
So now you need to "buy" that 1 share back and return it to your Mr.Brokerman as you owe him 1 share.
So now you only really end up paying him back $50 as Stock(X) went down so much, as opposed to the $100 which he "gave" you.
So, you walk away with $50 profit.
Make sense? I sure hope so. (If not, I can try explaining in a different way for you, just let me know.)

Now, you can't actually short-sell all stocks. Most brokers don't allow you to short-sell penny stocks(Stocks that are under $5) and sometimes other specific stocks that aren't on their list, in which case you're SOL. (Shit out of luck.)

http://www.nasdaq.com/dividend-stocks/ is your best bet for finding dividend stocks.
Generally companies who are paying dividends are ones who either aren't growing a lot, or are financially stable enough to do so. They lose relatively little money in comparison to the money gained by the stockholders and whatever their product/service that they offer nets them. Besides, it's a way to offer an incentive for investors to buy their stock and hold it. (Which is good for the stock price.)
Stock price of a dividend paying stock can very, generally they're $10 though.

If you're talking about the whole capital gains tax thing, yes it would be under their income so you'd most likely have to pay capital gains on whatever you make. Once you're 18 it would be under your name and officially "you" meaning if you aren't making a ton of money, you may be exempt from capital gains.

Thank you for all the questions, and if you have any more please don't hesitate to ask.

(Dec 5, 2014 06:06 PM)Cryptic v7 Wrote:  Thanks! I'll probably have some more questions soon. If you know a stock is going to drop a lot, and your broker loans you the share, and you pay the share back to him after it drops, is this illegal? Do people do this? And for instance if you short sell a stock and it raises a lot, could your broker demand for you to repay it when it is higher?

(Dec 9, 2014 05:53 PM)Reνolution Wrote:  Nice thread, but out of interest are you a believer in the random walk theory? If so why do you bother with active management.

(Dec 10, 2014 08:35 PM)Cryptic v7 Wrote:  Hey Enronitis, I'm planning on getting a part-time job when the new year starts.
I was planning on investing most of my money because my parents are able to cover everything else. Would you recommend Forex or the Stock market? Forex seems pretty fun, we learned about it in Econ class for a while but I don't see me making too much from it and it's not necessarily investing. I am leaning more towards long-term and short-term investing (not sure if you know much about this), things like your 401k, maybe bonds, and preferred stocks (so I can make money from dividends (at least that's what i think happens, right?)).

What would you recommend? Thanks for answering all my questions as well. :)

(Dec 10, 2014 08:38 PM)Enronitis Wrote:  In the end it depends on your capital, or how much you're able to invest on a monthly basis.
Stocks are my immediate go-to as I've done very well with them.
If you're looking REAL long-term you can always go long-term with a bluechip..or you could invest monthly into an IRA account.
Basically it comes down to do you want to be able to touch and spend the money? or do you want it to sit there until you're old enough to retire and then retire happily?

You can throw me a PM and we can talk more about what would suit you best.