what is the secret of the stock exchange?
by Author on Friday, September 3rd, 2010 | 6 Comments
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stock market is not risky if you know how to invest. These articles might help:
7 Best Stock Investing Advices Warren Buffet Want You to Know
http://www.stock-investment-made-easy.com/stock-investing-advices.html
How to Invest in Stock – Learn 4 Good Stock Investing Strategy
http://www.stock-investment-made-easy.com/how-to-invest-in-stock-learn-good-stock-investing-strategy.html
How to Value Stock – 3 Methods Warren Buffet Wants You to Learn
http://www.stock-investment-made-easy.com/how-to-value-stock.html
How to Trade Stock For A Living – Simple Trading Guide for Beginners
http://www.stock-investment-made-easy.com/how-to-trade-stock-for-a-living-simple-trading-guide-for-beginners.html
Buy low and sell high. Yes.
Yes, the stock market is risky.
You are small to the large investors, like a fly, on the back of a elephant. But that can be an advantage. learn how to read the price action of a stock, or exchange traded fund. verify it is backed up by the fundamentals, earnings, growth, dividends.
But the price and the volume, this is the first thing. Learn technical side of stock analysis. And as a small investor, be nimble.
Read a couple investment books!
No one can just tell you a "secret". If it was that easy everyone will be doing it.
The only secret isn’t a secret and that is don’t try to bet on individual stocks. Invest in the overal stock market through index funds that have a low percentage fee. Also don’t just invest in US stocks because we are tippy-toeing around a recession. Global index funds.
Good Luck!
It is risky, but you can make money if you play your cards right.
In general you want to:
Buy very high quality companies at low prices. For example look for stocks that have what are called ‘moats’ or features that make them difficult to compete with. For example Coke (KO) and Pepsi (PEP) have tremendously strong brand loyalty–it’s very difficult for new competitors to enter the market because most people will just shrug and buy what they’ve always bought instead of looking for. I think that Harley Davidson (HOG) and Apple (AAPL) have two of the most loyal customer bases on the planet. Apple is expensive but has dropped significantly in the last few days. Harley is cheap, on the other hand, and will probably continue to get cheaper as the market drops. Look to buy in in the mid to low 30s and just hold it…
Alternately buy exchange traded funds like IVV or SPY. You’ll own a little stock in a lot of companies, which is a safe way to get the overall market return over the long haul. Good luck!
Yes it is risky, so start learning the basics of fundamentals and technical so you will be more informed in your investments. You can find all the basic info you need on websites for free. This site should give you a good start.
http://finance.yahoo.com/education
But you can decrease the risk with an employer 401k plan. Invest up to the matching % of your employers contribution. Next invest in a Roth IRA up to the max allowed(yearly). If you then have more money to invest, go back to your 401k plan and invest the max allowed(yearly). So after you do all the above and want to invest more you should be able to decide how. Only invest money that you can afford to lose.
Remember to also review all your investment decisions at least twice a year. By keeping your profits before they lose value or worse become loses. Keep your loses low, also
Try what you learn on demo sites. If you pick 75% right with play money then you might be ready to start slowly investing.
http://simulator.investopedia.com/
http://simulator.zacks.com/
http://www.fxcm.com/open-free-100k.jsp
http://www.alpari-idc.com/en/metatrader4...
Or just google for more.
I use Lightning Strikes Trading System for trading in any time frame and it works on forex, stocks, bonds, etf’s, mutual funds, etc… They have 3 free training sessions a week and you don’t have to buy the software to join in the live chat and text. You can even watch some recorded past live sessions. Here are some past charts that I used.
http://f1.grp.yahoofs.com/v1/MB16R0zjjaZ...
http://f1.grp.yahoofs.com/v1/MB16RxjOUQt...
There are 7 indicators (2 short, 2 medium, and 3 long term) and if volume is reported another one is added (on balance volume). Plus whatever time-frame is used the 2 green horizontal lines are the support and resistance for that time frame. So when indicators are all touching the bottom price is at or very, very near support. At top is at or very, very near resistance. Which helps my entry/exits and risk/reward ratio.
http://f1.grp.yahoofs.com/v1/MB16R9Wv-wt...
http://f1.grp.yahoofs.com/v1/MB16R9wSKdV...
http://f1.grp.yahoofs.com/v1/QCt6R2fYIj6...
http://f1.grp.yahoofs.com/v1/QCt6R3R0VQe...
If you can not view charts above I can email them.
Here are my favorite sites.
http://stockcharts.com/
Has basically all you need from fundamental to technical terms. Plus stock screens, charts, public chart lists, and much more useful info.
https://www.fidelity.com/
Has good learning resources.
http://moneycentral.msn.com/home.asp
In addition to yahoo finance.
http://www.reuters.com/
For news and more.
http://www.marketwatch.com/default.aspx
For news and more.
http://www.valueprime.com/index.php
For rating stock risk/reward ratio and reports.
http://www.barchart.com/
For investing in more than stocks.
http://www.investopedia.com/
For more great learning tools.
http://www.lightninglive.com/
For best software timing your entry/exits any time frame for day traders and long term investors.
Others worth exploring.
http://www.equis.com/
http://www.stockta.com/
http://www.secform4.com/
Best Wishes,
Burt Whitley