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Is it possible to make a few hundred dollars a month from stocks with a small capital?
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No. There is a ton of variance in stocks, it's impossible to make money every month with stocks. You could average a few hundered a month, but you couldn't make that money month after month after month.
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I started an investment simulator game online and was basically thinking about doing the following: Do my hw and research a stock then put about $2k in it and buy some shares. If the stock goes down, then I just wait for it to go up and consider it a long term investment
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This strategy is very risky. You could get you a few really big losers that ultimately wipe out your whole bankroll, even though most of your picks are winners.
Say you put half your money in Google/GOOG and Delta/DAL at the beginning of the year, you would have quickly sold out GOOG for a decent profit, but your DAL would have lost 78% or so. Avoiding the really costly losers is very important in stocks, a lot like in poker. Picking up a WorldCom or Enron every now and then will really kill this strategy.
http://finance.yahoo.com/q/bc?t=1y&s...q=l&c=goog