New to the stock market...help!?

Question

I'm new to the whole stock market thing, but I decided to start investing. Any tips for newcomers?? I honestly have no idea where to start! I purchased a few stocks but well I still feel lost. Help!

Answer 1

A good book to read is "Mutual Funds for Dummies".

Also, do an internet search on "investing basics" or similar and you will find a lot of good information.

Answer 2

You should understand the main reason why you want to spend money buying a particular stock. This step should preclude investing in stock. It allows you to move swiftly as soon as the price of the stock goes down a lot. If you know the main motivation about purchasing a specific stock, you will not hesitate to buy it once the price falls. Stocks purchased on the spur of the moment can be sold as soon as the price goes down. But if you are buying it as undervalued stocks, you can buy more stocks. Hiring a stockbroker can benefit beginners to the stock investment as they give all the necessary information about the stock to make the buying decision easy.

Answer 3

I am a beginner in stocks but I make money since I join Doubling Stocks.

This is what happens: Their Penny Stock Guru, Michael Cohen will give you a penny stock pick each week and you just need to trade that stock and make money. His average profit per trade this year is more than 100%! He rarely picks the wrong trade.

Below are the stocks that I successfully traded with Michael's recommendation and make a good pile of money. Only 1 stock was picked wrongly:

1. PAETEC Holding Corp. (PAET) $9.80 (March 2007) $19.25 (March 2007) +96%

2. BioStem Inc. (BTEM.OB) $0.46 (March 2007) $2.34 (March 2007) +408%

3. LANTIS LASER INC (LLSR.PK) $0.49(April 2007) $0.42(May 2007) -14%

4. SUPERCLICK INC (SPCK.OB) $0.11(May 2007) $0.24(June 2007) +118%

5. DHANOA MINERALS LTD (DHNA.OB) $1.00(May 2007) $1.55(May 2007) +155%

You can read a good review of what you receive as a member through this site:

http://tinyurl.com/yuksz5

Answer 4

Don't get caught up in the price of a stock. A stock price that is $1 per share is not a good buy because of its price. I would suggest reading annual reports and looking for things like current debt and liabilities. Try and learn as much as you can about companies before you invest in them. People always do a lot of research before buying a car but for some reason never do any research before investing in stocks.

Answer 5

Ummmm .... Pickle .... not sure what he is talking about.

Start with a good book for beginners:

1) Investing for Dummies, by Eric Tyson. A good, all-around book.

2) The Five Rules for Successful Stock Investing, by Pat Dorsey. A must-read for anyone holding individual stocks.

3) The free downloadable book at http://www.invest-for-retirement.com

Answer 6

First step for you to understand the stock market is to understand stocks.A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company.

Answer 7

You need to hire a Portfolio Manager with over a decade of experience in the Stock Markets like myself.

Answer 8

the stock market is tough i learned a lot about investing from this website
http://tinyurl.com/ynqkkc

Answer 9

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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Answer 10

It's best to do courses and read some books.

You can lose more than you make.
I've listed a good resource below: