What are some good cheap stocks that i can invest in? How can i tell which stocks are good and bad?

Question

ok thats 2 questioins sorry.

Answer 1

this is like saying where can I find some good cheap airplanes to fly and how do I fly them....

so start with these steps first and pretty soon, you'll be the one giving everyone advice.

Step 1.
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank, with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me things that are better for them…. So I use www.scottrade.com because it’s cheap and easy with low frills. I do my own research and make my own investments. But any low cost internet brokerage service is fine.

Step 2. get a subscription to Barrons or Investors Business Daily…

Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and second you have some homework in Step 3 to do before you do any investing.

Step 3. Go out to the internet and search on the following subjects. Get familiar with the concepts.
Asset allocation
Roth ira vs ira
Large med small cap
Value vs growth
Indexed mutual funds
ETF
Sector funds
Bonds CD
International funds
Fundamental analysis
Technical analysis


Step 4 go to http://clearstation.etrade.com/ (it’s a part of e*trade which is also a low cost brokerage) and sign up for a free account. Play around there by looking at graphs and fundamentals.
I think it’s also a good idea to pretend you have $10,000 and start buying and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money then real money….

Step 5. It’s always a good Idea to see a CFP (certified financial planner). Their job is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits, insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types to keep away from.

Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.

Don’t get involved with futures, currency, options (unless you get stock options at work), commodities, annuities and other derivative type investments at this time.

Good Luck

Answer 2

1

Answer 3

Start out small. Take little bites...say a hundred to two hundred bucks each trade.

When you ask about what stocks are cheap, you should understand that the confusing part to knowing what is worth buying is to try and find what is REALLY cheap.

A $1.00 per share stock could be overvalued as opposed to a $100.00 per share priced stock that is actually cheap.

That dollar stock could quickly go to eighty cents, while the $100.00 stock could go quickly to $120.00.

So you need to study them carefully.

I use CNBC.com for making analysis of various stocks.

You get information about number of shares outstanding which also gives you an idea as to how cheap the stock really is.

I don't want to confuse you, but you need to get familiar with the information provided on various sites like CNBC.

I can see where some technology stocks look cheap now and could make big moves soon.

In particular, look up Nvdia (nvda) or Broadcom (brcm).

They appear cheap at the moment

Answer 4

I will give you 3 stocks to invest in that are just cheaper than dirt.

1. Occidental Petroleom Corp. (OXY)--a current P/E ratio of 7 with a forward earnings per share of 9! The average S&P 500 company will trade at a valuation of at least 15 next year. This company does alot of work in the oil serivce sector, and it will continue to make a killing in that business. Its currently growing at a rate of 38% on the revenue line and 45% on earnings (year over year). A grossly undervalued gem in the oil service stock, and in my opinion a very good company to be put in a 401-K

2. Goldman Sachs (GS), trading at current valuations of 9 times earnings, and expected in the future to trade at the same valuation next year. That would mean that the company is not expected at all to grow on a revenue or earnings basis at all. NOT TRUE! Earnings are expected to grow 167% year over year and 130% on the revenue lines..totally under appreciated and under loved stock...its definetly headed above 200.

3. Escala Group (ESCL). Eh, this is a synonym for the price of dirt....it trades at a P/E of 3! However, there is a reason why it trades this deep. Back earlier in the year spanish police raided the portugese offices of an ESCL subsidary-AFINSA, a stamp auction firm. Almost all the execs. were charged for it. Even without it the stock deserves to be around 15 a share. I would be a buyer here, interesting prospects.

You can tell which stocks are good mostly by the press realeases and if the stocks headlines affect them negatively/postively in the future

Happy Trading
-Paul

P.S. I personally own GS

Answer 5

Well, if you haven't learned about stocks before, then i don't think you should waste your time.

Stocks are a good investment, only if you know how to do it right. If you don't you will lose a lot of money.

I'm not going to spoil the secrets to doing well in stocks.

Answer 6

I've made a nice profit on a couple of suggestions he's given and plan to start trading his ideas a lot more. I definitely recommend subscribing to https://tr.im/pennystocktrading
Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had.

Answer 7

Don't buy anything until late fall....the markets are gonna come down hard and will take all stocks down together....whether they seem 'cheap' now or not, they'll get much cheaper.

Answer 8

the first question: need to learn first.

second question: i give you some ointer to find good info:
Yes you could learn invest by yourself. it is your money, you should know how to do with it. for starter check this site out.

http://www.pathtoinvesting.org/index_fla...
http://www.stockcharts.com
http://www.streettalklive.com>... university. a lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. when consider invest in stock market. you should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. my 401k is amassed 71,000.00 and 30000.00 in taxble account. by follow simple rule

Answer 9

Didn't Martha Stewart go to jail for this?

Answer 10

legz............1 place for you..www.ask.com (penny stocks) fun.fun,fun....try" xsnx "as your 1st stock.It is going to explode soon.