I don't understand the whole stock market thing, but it seems rather easy. Like just bet on a good company win money, but be careful on betting on it too many times who knows if it will plummet, right??
It is not betting at all. Spread betting is betting on the stock market and it is classed as gambling. Buying stocks and shares is buying a percentage of a company. You then technically own part of a company, although most people never hold their shrares long enough or have enough of them to make a difference to how the company is run. The idea behind trading shares is to find a company that will hopefully increase in value, buy those shares, and then sell them when they are worth more. However the value of shares can go down as well as up.
That's a 10,000% increase. I'm calling bullshit. Not many companies have EVER multiplied in value by 100 times before (especially in the past couple of years), and for a 12 year-old kid to find such a company he either would have to be very lucky, or the story isn't true. Some mining companies and some oil explorers shoot up in price but even for a 100 times increase you would have to wait at least a year, usually more, and why would a kid just make one lucky trade and then leave it for a year. Also, why would he sell all of his stock just so he can get it out in cash and take a photo. This is almost 100% fake.
The first guest is a stupid. Its a 10000% increase and it easily makes sense that he would sell it all. Its not like he is going to use that hundred dollars to start him on a career of trading. Also, how do you know he sold it all and how do you know it didnt take a year?
Excuse you. It is 10000%. 100% is 1 times, 1000% is ten times bigger, 10000% is one hundred times bigger. He started with 100 dollars and it increased in value by 100 times to make it (100x100=10000) $10000, which is therefore a 10000% increase. And I know he sold it all because it is right there in the photo dumbass.
If you are going to "play" the stock market, you don't stick everything in 1 company and hope itll just happen to increase in value by 10,000%. Thats just stupid and you are stupid for thinking thats what happened. You might start the day in company A then at 10:00 sell it all and put it in company B since you think A's at a peak and B is about to jump up, then if B jumps up and you think its about to fall down again, you dump it and put it in company C, and so on. A day trader could have the same investment in dozens of different stocks throughout the day, and all of them could have had a 0% increase by the end of the day (or even a loss) and the day trader could come out WAY ahead.
HOWEVER, its also extremely risky. You might start out with $100 and by the end of the day have half of it if you screwed up on a few trades, which is why most people don't do it. They invest in a few good companies and let it sit and grow.
As to the story, I don't buy it either, but its possible
My dad did this with me, except with imaginary money. I had a fake $1000 to invest in 5 stocks, and then I'd track it for a year and tell him what my increase was. I made $60 at the end of the year. I wish I'd used real money, though. One of the stocks I picked was Apple. In 2006, a couple months before the 2nd generation iPod Nano was released. It's now worth 10 times as much! If I could go back in the past and change one thing, it would be to tell myself to actually use real money and keep them at least 'till 2013.
HOWEVER, its also extremely risky. You might start out with $100 and by the end of the day have half of it if you screwed up on a few trades, which is why most people don't do it. They invest in a few good companies and let it sit and grow.
As to the story, I don't buy it either, but its possible