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Old 01-17-2013, 08:06 PM   #45
King Sirex
Join Date: Aug 2002
Location: Toronto
Posts: 9,850
Originally Posted by Blades View Post
if were talking buy and sell stocks and you have lets say $5000 to put into stocks. (forgetting all the extra costs associated with a trade)

you buy apple at lets say $550 per share you can get what?

5000 / 550 = 9 shares

now lets say you sell at $600

600 x 9 = 5400 ... profit of $400

you buy facebook at $30

5000 / 30 = 166

now lets say you sell at $38

166 x 38 = 6308 .. profit of $1308

my point is you can make more money buy more shares of a different stock because of the amount of money you have to spend.

By why stop there?

I could buy 500,000, 1 cent shares.

Apples share price might be high, but it's value is what you are paying for. They typically have good earnings. They have amazing financial statements. We know they have good products and are making alot of money from them. We also know Apple has alot of room for growth in China, India and much of the world still - heck they even grow here at home despite the market being over saturated.

Facebook, has alot of stuff in the dark. They don't have a good sales track record, etc. There isn't even really a good way for them to milk their user base yet.

I get what you are saying, and from a pure numbers point of view, you are right, you can technically gain more. However you can also lose alot more as well.
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