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/biz/ - Business & Finance

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663569 No.663569 [Reply] [Original]

Lets say you have 50,000 to spend on stock.
If you knew a stock were to rise soon i.e oil
Lets say you buy in at 1.49 a share
33,557 shares
The next day the stock rises to 2.00
33,557 x 2 = 67,114
Forgetting tax and all that youve just made 17,000 in one day.
is it really that simple or am i just crazy?
.

>> No.663576

Minus around $14 for trades probably.

Let's just ask the real question
1. how do you know the stock is going to rise soon

because you don't. You think you do, rain man, but you don't.

>> No.663579

>>663569
It's that simple.

Now find a stock that does it.

>> No.663581

>>663569
>The next day the stock rises to 2.00

or can go down to 0.98

>> No.663600

>>663581
Buy more then, oils not going to stay that low lmao

>> No.663602
File: 75 KB, 700x650, PxELIKGjhdc07SYhyx1IQw.jpg [View same] [iqdb] [saucenao] [google]
663602

>>663569
Yes it's that easy.

>> No.663603

>>663600

The phrase you are looking for is "the market can stay irrational longer than you can stay solvent."

Before you go making an oil play, you might want to look at how long oil sat at 20 bucks a barrel. Hint 10 years, 1985 to 1995 - and it could easily happen again.

>> No.663607
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663607

>>663569

34.2% increase

>> No.663612

>>663600

you can´t because you already spend all your money

>> No.663613

Hi OP. My name is ruble, I am lowest right now! Why not give me invest for my oil, I will give money for you.

>> No.663614

>>663603
Well the guy said 50k to spend, and he means gamble. I'm a gambler so at that point I'm already 50k deep, might as well go hard.

>> No.663617

>>663614
so you were deep before you were hard? I'm just trying to get the logistics of this

>> No.663630

You really have to expand the time horizon for a gain that large. I generally invest very long-term. The closest thing I've done to what you're describing is that I bought a bunch of Citibank in March of 2009 for 1.66. Sold it in May of 2010 for 4.24. That was a 155% increase. But it was risky and it took time and I had resolved internally that I was comfortable losing my original investment if it came down to it.

>> No.663631

>>663617

I agree with this... the logistics of this gambling seem very difficult.

>> No.663702

>>663569
Yeah OP, it's that simple to hand over 17k to the pros. The fact that you used a penny stock in the example is even more laughable. Sure hypothetically your scenario could work. But it it did it is a one-off lucky event. Then you would commence to say "gee I'm really good at this whole day trading thing, let's put it on red again and use leverage" now you've lost your 17k and your brokers on the line with a margin call. Any more questions OP?

>> No.663733
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663733

>>663569
>If you knew a stock were to rise soon
If you legitimately knew this, that would be insider trading

Enjoy your jail time