Friday, December 9, 2011

I'm new to investing and just opened an account to start. I'm trying to do research, but several sites that I've visited are talking about stocks like they're the next big thing, and offer little in the way of information. Is there a source for information where the publishers aren't trying to push a get rich quick strategy?|||Well, try to learn from people who have already made their bucks and don't have anything to gain from scamming you. Investing is not rocket science, but its more like farming, and you cannot expect to make real gains without real work.

At the risk of making this answer a lightning rod, I will just state right here,this applies to you since you are novice,professionals who disagree with me shouldn't waste their time on Yahoo Answers:

DON'T:

1.Technical Analysis
2.Margin Trading/Leverage
3.Short term trading

DO:

Try to buy something worth 10 bucks for 5 bucks
(You go to a department store, you see a nice Armani shirt for 500 bucks. The very next day, there is a sale, the Armani shirt is now 250 bucks. Very same shirt, no defects no nothing. You love Armani shirts. Buy or no buy? In this case, stocks are your Armani shirts)

The hard part is: How to know how much is your stock actually worth? That is where the references below come in handy.

2. Buy stocks ONLY with money that you HAVE. Leverage means using 1000USD to control anywhere from 1001 to 10000USD of stocks. For a novice investor, simply DON'T use leverage. If you have 1000USD to invest, buy at MAX 1000USD of stocks.

3.Short term trading is trading less than a few months. Ideally, if you followed steps 1 and 2, you will have a nice,good company earning money which you bought stock at a dirt cheap price. Hence as the company is making money, you as a shareholder are getting richer too. As long as that is happening there is no reason to sell your stock. More details in the references.

Websites to learn from:
www.economist.com
www.bloomberg.com
Investopedia and Wikipedia

Books:
The Intelligent Investor- Benjamin Graham
Beating the Street
One Up on Wall Street- Peter Lynch

And most importantly, regarding whichever particular company whose stock you are interested in investing in, you had better know everything there is to know about the company and the industry.|||I've found that there are MANY methods of investing in stocks and just about every person (or forum) you talk to will have their own opinion about what is "right." You are right to watch out for the "pumpers." They have usually already bought (or received) MANY shares of the stock they are pumping and are selling everything all the way up as they're telling everyone else to buy it. Keep watching, keep learning, keep asking, keep researching, keep listening, and MAKE SMALL INVESTMENTS until you find a method that suits your expectations and you become more comfortable. There is not one "magic method" that works for everyone. And if there was, I promise you, no one who new it would offer it up.
Keep this in mind... When you play at a Craps table, the biggest betting spot on the table and easiest to access is the "BIG 6 or 8" bet, but it is the worst bet on the table. You have to learn the rules and maybe have to stretch over the table to make the best bets. They don't "advertise" those.|||There is a great book called one up on wall street by peter lynch. he will give you some great ideas. The best advice I can offer, don't invest in anything you don't understand. I also would not invest in a company if I don't use their products. If you opened a brokerage account, they will have tools on their site you can use. Standard and Poors has great reports you can read as well. Take your time, or you will lose it fast. Good luck

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