What are trades and how do you make money like that? hwat? Has

(you)

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>>1823183
lets imagine a broker is basically a bank for ease of learning.

So you transfer money from your normal bank to your broker account which is, basically a trading account where your money sits. It also keeps a record of your trades (buying and selling stock, funds or etf).

When your money is actually in your broker account, depending on the broker, there could be a list of stocks you can purchase on the exchange you are using. It will list the current or most recent price update for buying one share. Lets say for the sake of simplicty, you see a share of a company called "O" for 50 dollars. If you have 100 dollars in your broker account and select O and purchase a share, you now own one share of O at 50 dollars and have 50 dollars ready for further trading.

Now shares typically have a limited amount available so when there is interest in a company when it is doing good, the value rises, and when it is doing poorly the value drops because people get afraid of what may happen. If O suddenly had a bad quarter and forcasts bad results for a few quarters people will try to sell it to limit their losses. The value drops from 50 to 45 dollars a share.

On the other hand lets say O starts paying out a dividend and had a great quarter. Now everyone percieves O as a great investment that will pay much more in the future. Everyone wants it and the price goes to 60 dollars a share.

Assuming we bought one share at 50, you could now sell it at 60 and end up with +10 dollars.

Some people watch for these fluctuations on a micro level (day trader) and to vast amounts of these trades daily by theorizing and following patterns and watching reports.

It can work but it is a high risk process the quicker you buy and sell and more stable process the longer you wait. The returns are better for companies with good fundamentals and the market is full of them. There are just as many opportunities for losses however.