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2007-02-22 12:31:56 · 6 answers · asked by Football Freak 1 in Business & Finance Investing

6 answers

I see you are very interested in Investing in the stock markets and that you are about to do something that you will regret for a very long time.

Always remember, Asking For Free Off-The-Street Advise Is A Highway To Disaster!

If anyone can trade the stock markets successful by posting questions like this, why are so many people still poor? If anyone here can tell you for sure which micro stock will rally soon, wouldn't the multi-billion hedge funds be in it before you can blink your eyes?

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com )

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.


http://www.optiontradingpedia.com/...

http://www.mastersoequity.com/

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2007-02-22 15:20:15 · answer #1 · answered by Anonymous · 0 0

There are no guarantees; investing in stocks is always risky.

Look for a good company with a strong record that has consistently paid dividends, and is increasing them. You can run a stock filter to determine what stocks are selling for under $5, and see if any analysts are following them. They may have their own motives for recommending a buy or sell on a stock, though.

Increases in reliable dividends will tend to increase a stock's value over time.

Sometimes people email you or post things saying that stock "___" is going to rise tomorrow...don't fall for it.

2007-02-22 15:23:43 · answer #2 · answered by CanadianBlondie 5 · 0 0

If you measure volatility in dollars, volatility usuallly increases as the price increases. If you measure volatility as a percentage of the price, volatility usually decreases as the price increases. Option trading is all about volatility. When option traders measure volatility they measure it as a percentage of the price. Example The $10 stock may have a volatility of $6, or 60%, while the $80 stock may have a volatility of $16, or 20%. To an options trader the $6 stock has a higher volatility, while if you prepared a graph of the two volatilities (in dollars) on a graph the $80 stock would appear to have a higher volatility.

2016-05-24 00:32:52 · answer #3 · answered by Anonymous · 0 0

Take a look at Sirius Satelite Radio (siri). After the merger it's bound to go up.

2007-02-23 00:56:45 · answer #4 · answered by Anonymous · 0 0

If people had a guarantee like that, everyone would be rich.

2007-02-22 13:37:38 · answer #5 · answered by kny390 6 · 0 0

Try www.ny-stock.com

2007-02-22 13:02:42 · answer #6 · answered by Anonymous · 0 0

fedest.com, questions and answers