2006-12-05 01:51:05 · 6 answers · asked by Greg S 3 in Business & Finance ➔ Investing
If you are asking that question in this forum, you are obviously a naive investor. You should avoid buying individual stocks and put your money in a no-load mutual fund.
The fact is that if anyone knew of a stock that was undervalued, they would buy it & that would bid up the price, making it less likely to be undervalued for later investors.
Academic studies show that new information gets imbedded in prices almost immediately. This means that if someone tells you here that there is good news for a company, then that good news is already priced in.
The only way to beat the market on a regular basis is to have private information. There are three ways to get private information. One is to have insider information (which is usually illegal to use in trading). One way is to pay for it -- taking away the advantage. The third way is to gather up all public information on your own & glean information from it -- leading you to realize the private information that causes the public information. In other words -- use fundamental analysis. Since there are other people doing this analysis on big firms -- the payoff isn't going to be high, since they will probably get the information before you.
All of this means that profits can be made in smaller firms where no analyst is covering the company. You can be the first to learn what the public information means. Unfortunately, doing this involves a skill and knowledge that most people don't possess. And it is certainly a knowledge that you aren't going to learn asking here.
No load mutual funds are your best bet.
2006-12-05 03:26:10 · answer #1 · answered by Ranto 7 · 1⤊ 0⤋
I just bought ENER - they make the batteries in hybrid cars.
If you are looking for investment ideas, check out http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.
Here are this month's best traders:
http://www.top10traders.com/Top10Standings.aspx
Hope this helps.
2006-12-05 23:21:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Best, in what sense? Safest? Most speculative? Highest dividend yield? Most revenue in foreign currency???
2006-12-05 10:42:41 · answer #3 · answered by Ivar 4 · 0⤊ 0⤋
2006-12-05 09:58:02 · answer #4 · answered by ~Peace~N~Love~ 3 · 0⤊ 0⤋
MasterCard (MA)
2006-12-05 14:00:43 · answer #5 · answered by Cheryl S 2 · 0⤊ 0⤋
ok make money wwat.ob
2006-12-05 09:56:03 · answer #6 · answered by Wael 3 · 0⤊ 0⤋