Buying one share of stock


Buying stock is the concept that most people will be familiar with. You buy stock and aim to sell it at a higher price (explaining the cliche “buy low sell high”).

Example

  • you buy 1 share @ $40
  • then sell 1 share @ $50
  • and make a profit of $10 or 25%!

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Note: A concept that you may not be familiar with is the opposite of buying, shorting stock (going short). This enables a trader to make money whilst the market is going down!

It seems obvious but buying shares can make you money, a lot more money than a bank savings account would pay you! For more reasons why buying shares is a great way to invest your money read the why buy shares section.

Note: You will only be able to consistently make money if you have been educated on the stock market (which is what we do) and have been taught how to trade responsibly, with strategies, which is what stock market courses do. To learn the steps needed to be taken to become a trader read our step by step guide to trading shares, it might just be the best thing you ever did!

 

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