131

In addition to what others already wrote: Be sure to understand what a STOP-LOSS order really does: it does not stop your loss for sure, but tries to do so. What happens when the stock trades the first time below your stop-loss price is that an order to sell at market price is generated, and your stock is sold with the next transaction (that has enough ...


25

So who, and why, actually purchases stocks in the few minutes of an ongoing crash? Other investors who are willing to buy at your price (for reasons unknown). You seem convinced that if you are certain of a downfall and the future is hopeless, then everyone else is too. But some may see it as a value buying opportunity. Perhaps other investors see it as an ...


23

Our thinking is that, if there's a long term market crash (e.g. Great Depression) and the value of our index fund plummets, People were having these exact same thoughts 10-11 years ago after the market fell due to the bursted real estate bubble. and we happen to have no job income for years, we'll need money to tide us over. Only making yourselves more ...


15

If you are skilled enough to know that there is no upturn in sight for the next few minutes then you should be shorting the stock during the drop and racking up nice gains. Collapsing share price (in minutes) and parabolic share price increase (in minutes) can reverse sharply in a heartbeat. In your hypothetical situation where stock XYZ is dropping ...


10

Here's what happens in the U.S. I assume that it's the same where you are and I'll describe it as such. If you place a limit order to buy fewer shares than the size available at the ask price of €30 then you'll buy shares at €30. If you place a limit order to buy more shares than the size available at the ask price of €30 then you'll buy some shares at €...


5

how does a person make a profit when buying stock? You don't. Profit is made when you sell at a higher price than what you bought it at. Consider the man with an apple cart selling apples. Does he make a profit when he buys the apples from a wholesaler? Of course not. He (hopefully) makes a profit when he sells the apples for more than it cost him to ...


5

It's wise to have some savings available for emergencies. AFAIC, 1/2 of your savings in an almost zero interest rate account makes no sense whatsoever. It's up to you to decide you investment/cash allocation but I would suggest that you put a large amount of your cash allocation in a high yield money market account. High yield might be a contradiction of ...


5

Ben Miller provided a lot of good information in his answer. I'd add a few additional points: A day trade is a round trip in an equity or option on the same day (buy then sell or short then cover). Making a day trade isn't a problem. You'll be considered a pattern day trader if you trade four or more times in a rolling five business day period (and your ...


4

If you are planning for a "Great Depression" or "end of the world" type scenario, nothing beats having some physical gold and silver. Precious metals (gold and silver coins) are easy to purchase and sell, easy to store, and hold their value if an economy goes bad. Buy some coins, own them physically yourself (dont buy into any "good ...


4

Take your question "is that $10 for holding 200 shares of stock " to its logical conclusion. In that scenario, someone who owned 2 million shares of stock in the company would get the same dividend as someone who owns a single share of stock. In that light, you see that it can't be true. Thus, the correct answer is "$10 per share of stock&...


4

First, I will point you to FINRA's page Day-Trading Margin Requirements: Know the Rules. It covers all of your questions and more. To answer each of your questions: A day trade is when you buy and sell the same stock on the same day, or if you sell short and then buy on the same day. If you open a position for Stock A and then close at least part of that ...


3

Still a good read even if the guy is already dead for over 30 years: https://www.amazon.com/Intelligent-Investor-Book-Practical-Counsel/dp/0060155477 Warren Buffet was Graham's student. The conclusion of the book is fairly straight forward. For an individual investor, it's pretty easy to match the average market return. It's almost impossible to do better ...


3

If you diversify within a single sector, you reduce your risk than any single company in that sector will have a significant impact on your returns. However, if the sector as a whole goes up or down that will impact your returns. The question you have to answer is why you think that a single sector is better than other sectors - more so than how the market ...


3

As a simple plan, divide your money/assets into 3 categories. 3-6 month emergency fund. (Liquid and Accessible) Need access to within 5 years. (Preserving) Do not need access to within 5 years. (Growing) The third is long term investments (good track record mutual funds and index funds). Over the long term, the stock market goes up. The second is for ...


3

Here's a very similar question that was asked a few days ago: 2% gain-and-out trading plan on the stock market. Read the answers and the comments to get an idea of the feasibility of your idea. Now let's say that stock is VOO, (stock that usually moves up and down 10 times a month). How many times a month can I do this? Is there a limit to this? There's ...


3

That depends on what your savings are and what you mean with emergency. If you are having serious investments into stocks and real estate - then your stocks and / or a prepared loan from the bank can handle every emergency you can think of without taking time. You are right with the index funds - 6 months emergency is good to have, but then you STILL eat ...


3

Yes, this is the point of an emergency fund.


3

My question is how does a person make a profit when buying stock? By selling higher than he bought or buying lower than he sold (for short). You are nice to point out you know what bit and ask are, with example - but are you also aware that the price MOVES with time normally? So, you could sell higher than buying when the price moves up enough for an active ...


3

There can be plenty of non-posted liquidity. So OTC orders that didn't match posted limit orders can occur, but so can trades between the posted spreads that just happened faster than the visual representation of the Level 2 will show. The NBBO is 180 - 185 and someone sent an order for 183.75 and someone saw that order coming to the exchange - who also didn'...


3

Some clarification first because it is not clear how many day trades you made and in what time period. You can only trade settled cash in a CASH ACCOUNT. That means that with T+2, the funds from a sale will not be available for two days. There is no limit to how many day trades you can make in a cash account as long as you are using settled funds. A ...


2

As is hopefully obvious, investing in the wrong thing, or at the wrong time loses money. Others have given examples, such as the Nikkei 225 which is down 40% from its peak 30 years ago. You might say this is "not diversified enough". Another example, the first decade of this century, where the S&P had terrible returns. You might say this is &...


2

What's unclear? According to the text of your question, to "get all 10,000 shares sold out at once" logically requires that there are enough people/organizations ready at that moment to buy those 10K shares. That's reasonable in highly liquid stocks. If there aren't enough people right then who want to buy all 10K shares (for example, if it's a ...


2

You can put a "all or none" clause in your order so that all of the shares have to be sold or none of them are. Of course, this may make it harder to sell them and you may not get the best price for the lot, since you'll need to wait for a buy order for 10,000 (or more) shares. More commonly, sub-lots will be sold as they get matched up with buy ...


2

The difference between the buy and ask is called the "spread". Most bids and asks are matched by computer these days, with the the market makers taking the profit from the spread. Market makers are large trading firms, brokerages, and other entities standing by to always buy or sell certain high-liquidity stocks, thus facilitating the ask and bid (...


2

You've misidentified the exchange that this stock is listed on. It's listed on NYSE American (formerly known as Amex/American Stock Exchange). NYSE refers to this as a "Small Cap Equity Market". There are various metrics used to determine whether a company is in compliance with continued listing standards. These are detailed here: https://...


2

There is no centralized place for a registry like you ask for. Companies don't necessarily know or care where their stock is traded - so they will not have a list. It's like asking 'all places where Toyotas are traded' - Toyota wouldn't know nor care, neither would anybody else.


2

If the two web sites disagree then clearly one of them is wrong. Given that Gamestop is a heavily shorted stock, FINVIZ is incorrect (GME doesn't even display for at >5% shorted).


2

If the shares are delisted from the NYSE, you will continue to own them. The question is, where will they be listed and what access will you have to those markets? If the legislation allows OTC BB trading, it won't be as bad as the companies being delisted and subsequently only trading on foreign exchanges. Either way, the pool of buyers and sellers will ...


2

Two types of markets Order book markets where buy and sell orders for trades at different prices wait to be filled. If you trade at market you are filling the most competitive orders. Dealer markets with market-makers who buy into- and sell out of their inventory of securities like a second hand car dealer. In case 1), if you have placed a stop loss order ...


2

Those who want to buy the dip, and those who are trying to catch a falling knife would be two categories.


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