Why is it not worth it? Would I not be able to sell it later on for a profit?
Let's say a stock costs $20 per share. If the commission is $5 each to buy and then to sell, the stock would have to go up to $30 just to break even. That's a very large increase in price and very few stocks will do that in less than several years. That's just to break even, without any profit for you. The broker makes the money through the trade, not you.Even if it's $100 per share, it would still have to go up 10% to break even.That's assuming you can get a broker with a commission that low.You can only sell it at a profit IF it goes up in price, which is impossible to predict, and IF it goes up enough to overcome the commission.The stock market is VERY risky. Even the very best stock pickers in the world take a risk. Nobody in the world can consistently pick winners in the stock market. Getting two out of three right is considered good. They reduce the total risk by investing in multiple things. That way if some go down, hopefully the others make up for it. They also reduce risk by dumping stocks at a loss before it becomes a bigger loss.When you only buy one stock, the risk is much higher. Stocks WILL go down. If your stock goes down and you are forced to sell, then you take a loss. That/s why should never ever get into stocks, or even mutual funds, unless you have enough money saved so you know for sure you can survive without an income. You also need enough for unexpected expenses.NEVER buy stock unless you are mentally and financially prepared to take a loss.
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