/biz/ - Business & Finance

[Anonymous No.1756524]

Okay guys I am new to stocks. I want to jump into share buying but acouple things I don't get that maybe you guys can answer.

1. When talking about returns, does this mean percentage on stock value or actual cash return to your portfolio? If so, is the return rate yearly, monthly, or quarterly?

2. Is it better to not hold onto shares and play the trading game or hold onto shared and wait out returns(unless the company fails)

3. What stock exchange firm/software do you recommend? I'm using Robinhood at this moment

4. As someone new getting into stocks, is it best to invest $1000 to start or test the waters and do small investments over time to build up to that?

5. How do stocks effect US tax filing and returns?


Thanks /biz/

[Anonymous No.1756532]

>>1756524
Bump

[Anonymous No.1756539]

>>1756524
1. Depends on who you're asking and the context. Usually meant in terms of return on investment (ROI), i.e. the return on the cash you initially invested. Both total ROI and annual ROI are common and useful metrics. Never heard about someone using monthly or quarterly returns.
2. Divisive issue with fierce proponents at each side. Holding is obviously easier. Short-term trading is riskier and can lead to higher gains, but more often than not you end up with lower returns than the general market/index.
4. 1k *is* a small investment. Picking stocks is usually a bad idea at this level. Low diversification and high fees (if you graduate away a from Robinhood at least). Just put it all into one or two ETFs unless you really want to gamble and play the daytrading game, but better write off the money up front. Don't stock pick with money you can't stomach to lose.

3. & 5. I'm not from the US, so I won't answer.

[Anonymous No.1756546]

>>1756524
>1. When talking about returns, does this mean percentage on stock value or actual cash return to your portfolio? If so, is the return rate yearly, monthly, or quarterly?
They are the same thing. Are you stupid?

>2. Is it better to not hold onto shares and play the trading game or hold onto shared and wait out returns(unless the company fails)
Holding wins in the long term, especially for someone as clueless as you. Buy index funds.

>3. What stock exchange firm/software do you recommend? I'm using Robinhood at this moment
Open a Vanguard account and buy index funds.

>4. As someone new getting into stocks, is it best to invest $1000 to start or test the waters and do small investments over time to build up to that?
Put a few thousand into index funds.

>5. How do stocks effect US tax filing and returns?
They are normal income unless you hold them for at least a year before selling, in which case they're capital gains. Losses can be deducted from taxable income. You only have to report what you sold, because stock appreciation isn't income.

[Anonymous No.1756549]

1. If you buy a stock for 1$ and sell it for 1.50, the value of that stock increased 50%. The cash you get or lose in your portefolio is shown when you sell your stock. There is also some that pay out dividends, a set amount of money per stock you own every now and then.

2. This depends on what you want. Low-Risk stocks is usually something you hold onto for long, expecting 10-20% increase in a year. High-Risk can rise and sink fast and is better for day-trading. (see pennystocks)

3. Robinhood is good, but any would work. Some softwares have different tariffs.

4. Read up on pennystocks. For instance i have stocks in RNVA, it's gone from 0.8 to 1.0 multiple times, which gives you 20 percent in one or two days.

5. I'm not sure about American tax systems.