DigitalPoint Stock Experts

I am think of learning stock as an investment. Any existing stock experts here can give me some insights on how to start doing so?

What are the things and terms that i should first familarize myself with.

 

Hi Derek,

You would need these:

Demat Account
Money
Lots of research
Financial backup

to begin with......

 

Buy the two books The Intelligent Investor and Security Analysis.

 

Agree, start with some books to learn. Intelligent Investor as mentioned above is a good choice.

Then define for yourself exactly what your objectives and constrains are. For example, what sort of return are you looking for, what risk are you willing to take to achieve etc...

 

does Intelligent Investor teach all the basics? i am new to stocks

 

It teaches you how to find undervalued companies, in simple terms it teaches you how to find companies that are worth more than there current value.

 

For the basics you can watch "Mad Money" . For the absolute basics there's wikipedia .

And always remember that normally high profits come from high volatility .

 

oic, thanks.

Correct me if i am wrong, when analyzing stock, we analysis the company information, like the directors board, employees, financial statement etc right?

Why is that so that in some companies their stocks volume increases and decreases drastically. Is it because there is a huge number of people buying/selling them? Therefore, in stocks with high volume activity, it is advisable not to hold it for long term as there are too much changes?

I have a friend who make $200$ the second day he bought it, is it possible?

 

When it comes to holding on to stocks there is a simple rule : Money Never Sleeps . Stocks that are not traded are worth less then toilet paper .

 

You can also get tips from investment banks such as Goldman Sachs and Citigroup will often give buy and sell ratings, like they may give a company a "strong buy" rating.

http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=uk&hl=en&q=strong+buy+rating

There always worth keeping an eye on.

 

Warren Buffet once said the market is there to serve you not to advice you. Investing isn't like wall street where you're analysing charts on multiple monitors day in day out untill you develop eye conditions and your body starts to waste away stitting in a char. Investing is all about understanding the company like if you were to buy the whole thing. If you brought a company you wouldn't hire someone who can give you valuations every 5 minutes. You'd also be looking to the company itself to produce the return and some stocks do yield good dividend.

Good companies like CocaCola for example will always be worth something aslong as there's capitalism so stocks like $KO are safe bets to me.

Yes volume is what moves price. You don't need a high volume stock to invest into it because you're not looking to sell it in another 10 minutes, so you don't care how many buys are in the market to take the stock off you and how many sellers are willing to sell you their stock.

Lot of bluffing goes into volume, for example what some large trading companies will do if there's a shortage of sellers is start taking large short positions drive price down. Which will come up as a large sell orders to people watching the live orders flick through, when people see large sell orders coming through they'll think the "smart money" is selling off. They'll panic and start selling, but what they're doing is bluffing noobs into selling their stock so they can quicky close the short positions and as a result buy a lot of the stock the noobs have freed up. This can all happen in less than 60 seconds.

Lot of people think the stock market is free money but infact it's an extremely competitive marketplace.

 

I have some money for invest but so confuse, because I can't decide which option is best for good response at this time. Do you think investment in stock is better than other investments like real estate.

 

You need to understand the market you're going into first you could invest into Stocks that make up the S&P 500 but then you've got to understand how the S&P 500 works.

You can see how the S&P has been ranging with support and resistance between 800 and 1,500.

 

I am reading about buying the market, anyone here have success in buying the market? for example SPDR or sti etf? seems that if you held it for long(fire years), it is a feasbile investment. I calculate if i invested 10k into it, i would have 16k at end of 5 years.

advice appreciated.

 

I don't normally give buy recomendations but I think Citigroup $C, Bank of Ireland $IRE and Bank of America $BAC are a buy and hold to me. Cheap distressed quality companies at marked down prices.

 

I mean it's very risky but if Bank of Ireland every went back to being worth $93 a share your $10,000 would be worth $339,416 if you brought 3,663 shares at $2.73 = $9,999.99. That's also without compounding.

 

cool, thanks.. how long are u in investment and which type of trader are you?

1) Buying Markets & Sectors
2) Value Investing
3) Momentum Investing
4) Options Trading

I will really excited about all these investment things.!

 

I'm a value investor, I run internet businesses and pump a lot of the profits into the markets for better taxation. But I'll also buy strong distressed companies after they've displayed some areas of support. I'll also buy good till broke companies like bank of ireland I have a position and a lump of capital invested that I'd feel comfortable losing if the price were to go to $0.

 

Hi, what is the meaning of support and resistance? Do you have any investment forums that is good for beginners like me? Those forums where you can ask questions and stuffs like that. Seems that not alot of digtialpoint members play stocks.

 

Support and resistance are levels that price will keep bouncing off http://www.investopedia.com/articles/technical/061801.asp. This is a good site to start learning about the markets http://www.investopedia.com/

I'd stay away from forums there's not a lot of credible investment or stock forums out there.