help with stocks?

Question

hi im allie im 16 and im interested in stocks. my mom told me to find a stock (a good one) and she would help me set it up. but the problem is i dont know what stock to buy. what one is the best? how do u know? do u have any suggestions on which one i should get?

Answer 1

this step-by-step winning formula probably can help you to pick very good stock.
http://www.stock-investment-made-easy.com/good-stock-pick.html

Answer 2

Tip: Don't hold stocks...and be a sitting duck!

Now you have absorbed that..the market at present is becoming difficult becasue it is volatile.

How would you like to lose money..like 20% of your money?
Not likely! This is the prediction that it could fall by that much.

What goes up must come down..people like to take profits
and so they sell...and youy must learn to sell as well.

Many people HOLD...get used to the idea of the market
as a short term opportunity...not long term.

Buying is not where you make money...it's the selling
that's important.

In order for you to make some money you have to educate yourself.

You are going up against ther BEST in the world when you put your money in the market..and they will take your money..if you let them!

Start your research..do courses and read books on your
business.

This is how you will have a fighting chance. Get help, access
price info, use the scanning tool and get a trading system and
trading education... all in the one place.

Ideas to help you succeed:

Answer 3

Grasshopper you been sitting at home all summer and never watched CNBC..That is the one with the stock ticker on the bottom of the screen. With pad of paper and learn--that is all that is required to turn thousands to ten thousands. Watch Cramer at 6pm or 11pm MAD MONEY ... Get on the computer and cramer.com and start reading. He is a milliionair many times over and his goal in life to to help people make MAD MONEY on the stock market. Yesterday Cramer gave 10 stock picks that will go to $`120 or close... I really hope you get excited about the stock market it is so much fun. Your mom is wonderful to encourage you to learn. I think I love your Mom... I know Cramer does--what an opportunity...
Please your 16 don't go into a panic. You must learn Grasshopper.

Answer 4

There are things called Exchange Traded Funds (or ETFs) which buy and sell just like normal shares of stocks. But when you buy a share in an ETF, you are buying into a pool of lots of companies that have something in common.

As an example, if you bought NY, you would have to pay around $80 per share, plus your brokerage fees ($7 at Scottrade, $500 minimum to open an account). What you;ve bought is a share in a pool of the 100 biggest (by market capitalization: the number of shares a company has times the most recent price for a share of that stock) stocks on the New York Stock Exchange. They got big because they were good at something or famous for something, so you would be buying into the best of the best, according to one way of looking at it.

Another is the Dow Jones Total Market Index, look up the symbol IYY. It is a representative sample of the stock market, the pool here is over 1,500 different stocks. When things are good, lots of these individual stocks are up, but the rest are either down or about the same. The general trend of business-as-usual gets followed. Think of it as a boat in water: when the water rises, the boat rises, and when the water falls, the boat falls.

Finally, there are two major "averages" that are at the top of the news almost whenever the stock market is discussed. They usually will start by saying "The Dow Jones Average is--" up or down by so much, or they will say "The S&P is--" up or down by so much. These benchmarks are the Dow Jones Industrials, a set of 30 important companies. You can buy shares of an ETF, symbol DIA, or commonly called 'diamonds', which is a pool of those 30 companies. Whenever "the Dow" did this or that, your shares will usually fairly closely follow. If you bought 'spyders', or SPY, you buy into the 500 stocks of the Standard and Poors 500, the second biggest indicator. These 500 companies give you a broader sampling--with the specific purpose of relatively safe price improvement.

As for an individual stock, a single company, what companies do you like? Do you like Wal-Mart or prefer to shop at Target? Do you like to drink Coke, or Pepsi? Do you prefer to eat at McDonalds or Wendys or even at Applebys? All of these are solid companies. You can put some money in them and when you shop there you look around and think, "I own a piece of this!" (It will be a very tiny piece, so don't think you can boss around the store manager, okay?) Investing is like planting a tree. As the tree (or company in this case) grows, the value of your investment grows. Good luck. Have fun, but don't get greedy, alright?

Answer 5

ETF are subject to wilder rides than any mutual fund perfect example VEU Thursday went up $1.06 yesterday closed down .03 by comparison CWGFX (I own) thursday came up .84 and was still up .05 on Friday. and the expenses in the the two are not even close veu has a .2% expense ratio while cwgfx has a .72% expense raito.

Translation if you can stomach the ride get an ETF if not get a mutual fund. But always look for low expenses.

Answer 6

never invest in a single stock... look into mutual funds.... they are better.

check out:

www.fidelity.com

www.vanguard.com

With mutual funds, Your money is not just invested in one company – it is actually in hundreds of companies. One mutual fund is spread out over 80 to 200 different companies’ stocks. For example, if you have your four different types of mutual funds all in Fidelity, your investment is spread out over 320 to 800 different companies. Fidelity is just the fund family, but your investment is not in them.

There has never been a growth stock mutual fund company or fund family go broke.

source: daveramsey.com

Answer 7

You would get a lot of info on http://www.3stocksonfire.com/index.php?ref=8906mc but I would also try loking at the things that are popular and that you like- like Apple (AAPL) or Nintento or other popular items that you know will be around for a long time. Find out what company owns or makes them. See if they are a good company by how they rate at morningstar.com or motley fool
Good luck!

Answer 8

gerald is correct. however, if you are just trying to get our feet wet and learn a little, go with what you know...buy 10 shares of mcdonalds or starbucks or some other big name company and pay attention. then when you are ready for the big bucks, go inot stock mutual funds. for my three kids, i bought each of them a share of a company they like and we sit around watching cnbc cheering for the company...for them its cute, for them its serious and a lifelong learning experience. for single shares go to oneshare.com

Answer 9

first be willing to read alot. never stop learning ok. i look ar companies from the fundmental side of things. i take the companies latest annual report and go thuorgh there financial statements (income,cash flow, balance).
the first thing i look at is it income statement. i look at its sales and make they are going up and not down. then i look at the earnings and make they are going up. this is at the bottom of the income statement.
if this is ok then i move on to the balance sheet. here i am looking at current assets and current debt. i want the current assests to be at least 2x the current debt level ok. this tells me the company can pay its bills on time.

then i look at the shareholder equity and compare it to the companies total assests i want the eqiuty to be at least 50% of total assets. the reason being if it is less then this the company could have to much debt.

then i take the net income and divide it by the shareholder equity to get my return on equity (ROE). I compare this to the company's PE ratio (price/earnings) can be found on the company stock qoute. i usually buy when the ROE is at least 50% higher then the current P/E ratio.

happy investing

Answer 10

TASR, but do your own research.