Stock help?

You have a lot more reading to do. You know nothing about markets, you have no real source of income, and you're wiling to gamble on what little you have - Sounds very foolish to me..

Better learn more abut penny stocks, you have no idea how they work.

the thing you are missing is learning how the market works

You are unemployed so you got plenty of time - so go do it

WRONG ! You do not own money from someone whom bought your share at $1.5 , because that trader willing to buy yours at $1.5 per share and he ( or she) assumes $1.5 per share is a good buy. He expects the shares are bought from you could go up even more than $1.5 . You win ( gain ) $50 profit called capital gain which is taxable at 50% of $50 when you file your income tax return for this year. In another words, only $25 out from $50 is a taxable income. As you are unemployed now and your income is very low, this extra $25 income might end up not necessary to pay any income tax from it.

Playing stock is a high risk game ! The stock could also come down from $1 the next day or even more later. You will really learn the uncertainty danger from stock trade with your hard money.

You have a basic understanding. IF the brokerage charges $7.00 a trade, you buy 1 share for $1.00 and sell it for $1.50. Then you made $.50 on the sale, but you owe $14.00 in commissions. You did not make money, so you won't pay taxes. If you buy $100 shares at $1.00 and sell the stock for $1.5, you make $50 on the sale, and still owe $14.00 in commissions. So you make a profit of $36. IF you did not hold the stock for a year, you will pay ordinary income tax of abour 20% or %7.00. If you hold it for over a year before selling, you get the capital gains tax rate which used to be 15%. However, there is no guarantee that the stock will go up. This is not a viable alternative to making a consistent income. The very best investors would be ecstatic to earn a 25% return. If you were among the greatest investors, you would have to be trading $200,000 to make an income of $50,000 before taxes. And you'd be risking losing about that much in the process. IF you are really interested, read the book "The Way of The Turtle". It is probably most realistic treatise on stock Trading. However, short term stock trading is speculating. It is not investing.

Yes you are missing that most don' go to 1.50. Many go to 85 cents and stay there, or lower.

When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, most penny stocks do not let you use risk cutting procedures (options and/or stop orders) since the majority are not traded in a regulated market place. Since there no requirement on market makers in the OTC Market it may be difficult to find a buyer when selling is required.

They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money. Since there are no meaningful regulations for trading only those with trading experience stand a chance of being successful trading in penny stocks. Penny stocks are not for newbies.

When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives. One should not trade penny stock unless they have several years experience trading regular securities.

The major firms on Wall Street do not and would not trade/invest in penny stocks,

Professional traders/investors do not and would not trade/invest in penny stocks,

Experienced traders/investors do not and would trade/invest in penny stocks,

Those that understand the markets do not and would not trade/invest in penny stocks,

The Federal Government prohibits broker/dealers from recommending penny stocks,

The Government tells brokers and the general public not to invest/trade penny stocks.

Only those with little or no experience in the market believe that penny stocks can be investment vehicles, they don’t know that the majority of penny stocks do not trade in a regulated market, nor do they know what a regulated market means, but that’s understandable since they nor do they know very little or nothing about how a real market operates and are gullible enough to believe whatever they read about such crap.

If Professional, & experienced insiders along with regulators do not think one should get involved with Penny Stocks, why do you, a newbie, think you should.

Its not as ideal as you described it. When you simplify it down to its basic roots, youre on point. Its just not that simple. No stock is ever guaranteed a gain. A stock rises and/or falls dozens of times a day. If you choose your stock wisely, you are likely to gain money. Theres factors such as timing that can turn a win into a loss and vice versa. You will have to pay about 1/3 of your profit in taxes. A buy and a sell of a stock costs $10-$20 combined, assuming you will use an online trading company. I hope Ive helped you some.

Buy low, sell high.