Your Questions About Good Money Making Stocks

David asks…

How do you learn to make money in the stock market?

I just wanna know how does one learn everything they need to know about the stock market. How do you learn about companies? Are there any basics i should know about playing the stock market. Is there a book i can read, a website i can go to, a class at community colleges i can take, etc. I’m an undecided major and it’s one of the subjects that i’m really interested in because i think this is something i would be good at.

John answers:

With such general questions, it’s difficult to help you at all.

First, regardless of subject, your main question is “How do I learn?”
You’re in college and don’t know this one? You read and study hard, and finally, you learn by doing.

“I just wanna know how does one learn everything …”
You’re still a child, waiting for someone else to GIVE you the answers. You aren’t ready to do the work yet. You still actually think someone knows “everything.”

“How do you learn about companies?”
Your local library will have a CD you can use that will give you all the info you would want about every company in the U.S., but you probably won’t use that information. You should probably be more concerned with their stock price than their book value or earnings ratios. Okay, you’re looking for profitable companies with increasing earnings for several quarters, unless you’re looking for a stock to short.

“Are there any basics i should know about playing the stock market.”
Of course there are, but too many to cite here.
Lesson #1: there are three directions to any market, not just one.
If you want to “play the stock market,” then you’re probably talking about “trading,” and not “investing.” You have to be specific, or you will get nowhere.

“I’m an undecided major …”
Yes, and you will remain that way until you define your terms, do the work required of you, and stop waiting on someone else to give you everything. Don’t allow your future to just happen; take a hold of it; it’s yours. Go to any college and ask for a free aptitude test.

“it’s one of the subjects that i’m really interested in because i think this is something i would be good at.” Really? What makes you think so? Have you made money trading? Don’t live your life fooling yourself. Don’t make silly statements you can’t corroborate. You’re lying to yourself; completely directionless. You don’t have the initiative to get started, let alone have a clue about anything, or something ” i would be good at.” Your general-ness is killing you.

If you’re thinking about trading, you should know that 90% of all traders lose their money. Those are pretty long odds Where will you get the startup capital? You’ll need a minimum balance of $25,000 for a Day Trading account.

“Is there a book i can read, a website i can go to, a class at community colleges i can take, etc”
Zero initiative: these are things you can check on your own quickly, but again, you expect someone else to give you the answers. There is no one course, or book, or website or seminar that will make you rich or teach you “everything.” Life or trading is an ongoing process of learning for the rest of your life. You’re not ready to do the work in order to learn; you’re still waiting.

Come back here when you’ve done something on your own, and ask a specific question.

Http://www.howthemarketworks.com./
http://stockmarket.makemoneyideas.in/
http://simulator.investopedia.com/home.aspx (simulator, and finance terms and definitions)
http://www.top10traders.com
http://investing.sitesled.com/
http://futures.tradingcharts.com/learning/
http://www.fool.com/school/basics/basics…
Http://beginnersinvest.about.com/library…
Http://www.mysharetrading.com

Beginner’s Books on Investing

“Which Is Better, Buy-and-Hold or Market Timing?”

“Do You Have What It Takes to Be a Market Timer

Droke, Clif – Technical Analysis Simplified

Kahn, Michael N. – Tech. Anal. Plain & Simple

Kamich, Bruce M.- How Technical Analysis Works

Lefevre, Edwin – Reminiscences of a Stock Operator

Lofton, Todd – Getting Started in Futures

Lowenstein, Roger – Buffet (Warren)-The Making of a Capitalist

O’Neil, William J.- How to Make Money in Stocks

Oz, Tony – How to Make Money From Wall Street

Chris asks…

How much money would someone make in this stock market situation?

If I put $10,000 on a stock that is $3.00 and then the stock increases to $60.00..what is the profit?

John answers:

Very very briefly:

$10000 buys you 3333.333333… Shares at $3. At $60 you sell your 3333.333333… Shares for $200000.

Profit = $200000 – $10000 = $190000 (minus any commission you had to pay to execute these orders)

Hope that helped!

Sandra asks…

How does a Mutual Fund make money?

Are you only making $ when stocks go up or is there some kind of interest attached?

John answers:

Just when their stocks and/or bonds make money

Lisa asks…

What do I need to know for trading stocks?

I want to start trading stocks to make money for college. What are some essential things to know about stocks?

John answers:

NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE!!!

Stock trading is all guessing. There are no sure-fire bets, especially in today’s market. I started trading for real in Oct. 2008 with $500.

Make sure you research the company BEFORE you invest, and do weekly checkups to see if anything major has happened or changed in the company.

My advice is that, before you play with real money, practice with virtual money. Go to vse.marketwatch.com and set up a free account. This is how I got used to investing and learned a lot. This is the only risk free type of investing, the type that isn’t real. Play around and experiment for a few months before you risk your hard earned money.

Also, listen to CNBC or other business network. They provide you all the relevant news about the market.

On stocks, do a few Google searches to learn about support, resistance, Beta, outstanding shares, authorized shares, forward and reverse splits, dividends, P/E ratio, as well as ETFs, commodities and their effect on stocks, and how to read company financial summaries. Pinksheets.com is a good resource for smaller companies. Your online investment broker website will provide you with quotes, company news, and company information for larger companies.

Create an account in Google Finance or Yahoo Finance and read the message boards about your stock to get an investor sentiment.

Check out stockta.com for free technical analysis of stocks.

The biggest thing about stocks is that they are unpredictable. Good companies have bad stocks and vice versa. Never act on the recommendation of a website (especially those free stock picks sites), analyst, or friend without doing your due diligence (DD).

You will lose money, make no mistake. Don’t be afraid to sell at a loss.

Linda asks…

Can an employee be terminated for trading stock on company time.?

Here’s the scenario, an employee paid by the hour to perform a task for a company that has no ties to the financial industry. Although, this employee like to trade stock during company hours that this person is compensated for. Is it unethical to make money trading stock on a company provided medium and get paid wages for it too while on company time? Should this individual be terminated?

John answers:

Perhaps. Perhaps not. How much time is this employee spending on personal time versus performing his paid duties? How does his personal time compare to that of others in the company? Are there any policies in place regarding this or similar issues?

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