New to Stock Market. How to choose the right stock?

Question

I am New to the Stock Market. I would like to know How to go about it. Ant tips for newbees ?

Answer 1

I have done well in the market, including it's ups and downs. Do not invest your money in individual stocks at this time. Put your money into a mutual fund. 50% domestic mid-caps, and 50% developing markets (Asia). Then PRETEND that you have $100,000 and invest that pretend money in a few stocks. PRETEND to buy and sell them for at least a year. After that you may be ready to invest your own money. Never go on margin. Do not invest money on individual stocks that you cannot afford to lose. Do not invest money in stocks that you will need on a certain date. If you do, you will surely lose money. Get ready for some sleepless nights. Good luck!

Answer 2

I've been investing in the market for a few years now. I'm writing a blog about how I got started and what I'm doing right now. Check out my 360 if you get a chance.

You really need to do quite a bit of research. Yahoo finance gives me about all I need as far as the business news. You also need to figure out what investment strategies are right for you. There are so many ways to invest in the market, and generally the ways that new investors know, will only lose you money.

Check out a few books on investment strategies and the stock market in general. Read as much material as you can get a hold of. The street is great. I like Fool a lot. Start with companies that you know. Yahoo, Ebay, Sony, and Apple are great places to start. Just read the articles that are on Yahoo Finance to get a feel for these companies. Then branch off into the sector that you feel comfortable investing in. Good luck with whatever you decide!

Answer 3

For the best answers, search on this site https://shorturl.im/awLyY

What are the rules? Like for how long and are you picking to see which will appreciate over a certain amount of time or what? And why should I give you my picks? I've put in a lot of work researching stocks, why should I just give it away. Lastly, I don't like AMZN right now. They're a good company and may take over the world someday but they have an absolutely absurd PE ratio. That stock is set up to collapse should things go bad in the economy. I wouldn't touch it right now.

Answer 4

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Answer 5

read as much as you can, and take all stock tips you receive with a grain of salt. I would recommend for newbies that you start investing using a place like www.sharebuilder.com I've been using them for a couple of years now and they make it very easy for long term investing. Occasionally though, I've needed to quickly unload a stock and it is not a complicated process. There is tons of information on the internet for anyone looking to get into the market.

Answer 6

It is best to look first at ETFs where you can get diversification. Like buying open-end mutual funds but you can buy and sell during any trading day whenever you want. I'd suggest going to etfconnect.com and selecting a broad-based ETF paying special attention to the premium/discount to NAV. For example, the S&P 500 Index (SPY) is a great way to have exposure to the 500 biggest U.S. stocks if you want to go that way. There are ETFs for international exposure and sector exposure as well as exposure to different market caps (like small-caps vs. mid-caps). An example of an ETF that trades at a discount is Tri-Continental (TY) at a 12.68% disc to NAV per etfconnect right now. They usually trade at a discount any they own big-cap stocks like GE and MSFT. I do not own TY and have no opinion on its future performance, I'm only using it as an example.

Answer 7

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/pennystocks
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 8

Some general advice:

In general your goal is to find companies that are likely to do well (ie generate a lot of money) in the coming years that sell at a low price. Note that in investing the real price of the company is not the share price, but rather a company's price/earnings ratio. This number essentially tells you how many dollars you will have to spend to buy one dollar of the company's earnings (ie if a company has a PE of 10 it costs 10 dollars to buy 1 dollar of earnings.) This number relates what you pay for to what you get. In general companies that have high PE ratios are expected to grow rapidly (and create a lot of money for shareholders down the road), while companies that have low PE ratios are expected to grow slowly or shrink. Again you want to find a company that will grow rapidly but that doesn't sell at a terribly high PE. In general companies that are expected to grow rapidly sell at PEs of 25 or more, companies that are expected to grow slowly sell at 10-25 and companies that are expected to shrink their earnings sell at less than 10.

Look for companies that have strong brand names.

It's easier for small companies to grow quickly than large companies, but small companies are riskier.

Diversify. Don't invest all of your cash in one stock.

Look for companies with a lot of cash and little or no debt.

Invest in companies that you understand or know something about.

Don't day trade. You'll spend a lot of money on taxes and transactions fees and it's pretty much impossible to tell what a company will do over the short term anyway.

Taxes on stock sales go down after you've held the stock for a year.

There are a lot of books about investing available at a library or bookstore. Bone up before you dive in.

I also reccommend investing in mutual or exchange traded S&P 500 funds. This allows you to own stock in the 500 largest US companies and eliminates the risk of investing in individual stocks. The ticker symbols for 2 S&P500 ETFs are SPY and IVV.

Good luck.

Answer 9

I subscribe to street.com, morningstar.com and motleyfool.com

and buy stocks and holding now since they are going down...........

and now I unsubscribe from everything .. no time and no money left to invest..........

main thing is to invest in fundamentally strong co and watch them grow along a bit of up and downs but long term trend up..
and have a mixture of mixed industries so that the whole group balance for the main result..
I do not go for old and prestigious and popular ones which are in fact struggling like big and old elephants..
my research has lead me to good stocks which are

zumz, mant, drq, nhy, lvs

oil ones are doing good now and the rest are a bit down like all others..

Answer 10

You have to learn everything byb paying a price.
So try try try .... you will lose some money and ultimately you will master the Stock Market once you lose in lakhs.