Quote:
Originally Posted by
abulo91 
k so I want to buy share of walmart as indicated today the stock price is 58.70 and i want to buy 50 share which would cost $2935, but know i want to know how much money will i get or lets say my profit at the end of the year, and what are the thing i should consider when buying a stock. thank you
When you buy stock you never know how much profit you will have at the end of the year nor do you know if you will lose money at the end of the year.
This of course is my opinion and should be taken as that.
Continue to look into companies in terms of fundamentals, but include some aspect of technical analysis to help on your timing. I would be less worried about the technical aspect of it, but keep it in mind. I say this based on what seems to be a long term outlook on Walmart. Also remember that walmart is not necesarily a growth stock and really in theory not as safe a stock as it once was. I like the idea of target, but costco may be a better outlet in terms of opportunity just not right now. Make sure you aren't putting all of your eggs in one basket and meaning don't use all of your money to buy one company.
To give you an example of how to calculate P/L or profit and loss I'll give you this example to make things easy. Hopefully I wont confuse myself here trying to make this simple. Say for example the price of Walmart stock declines to 50 dollars and you purchase 1 share. If at the end of the year the price of walmart reaches $60 then you've made $10 dollars on 1 share. Now if you had bought multiple shares such as the example you provided of 50 shares. Simply multiply the # of dollars made on 1 share($10) x the # of shares that you purchased. So 50 shares x 10$ = $500
If that is still confusing let me know.
Note: Remember to calculate your P/L if the price of the stock were to decline to $40.
