Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Reveletron

Total Noob Here

Recommended Posts

Hi Everybody, I'm Chris. I'm recently fascinated with trading, hoping to eventually get started. I've read a couple books and watched a lot of videos.

 

I have two fundamental questions.

 

Let's say I buy 100 shares of a stock at $35 = $3500 cost.

It goes up to $40, and my hunch is to get out there. Profit = $500.

 

Obviously other examples may gross better wins, but why would I risk $3500 to make $500? Why doesn't everybody trade options, where my downside is fixed, and my upside is many many times that? What am I missing?

 

Secondly, how are these profits taxed? I have never seen this mentioned, but I vaguely remember when I read about penny stocks that holding a stock for a very short period, triggers a very high taxation rate.

 

I understand as a newbie I should focus on trading well and not the money, but I can't help but wonder.

 

Thanks for any input!

Share this post


Link to post
Share on other sites

Well, holding stocks you receive dividends and can control better your risks. But I prefer to trade CFD's its similar to stocks but they require less trading margin but yield more profits. I use Hotforex services for that.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.