Your Questions About How To Pick Stocks

Helen asks…

Is this a good stock market newsletter to listen to? They always seem to be right!! HOW?

I subscribe to a penny stock newsletter that seems to always have the right stock picks. Is this a good thing? or is this some kind of a scam? They provide the information in advance, and within days, the stock always goes up. Any advice? I should mention that I have sugegested it to other people, but am now wondering about it.

John answers:

Penny stocks are both unreliable and an expensive way to throw your money in a hole. Read the Intelligent Investor by Benjamin Graham, which teaches you how to invest in a manner that gives you enough safety that you won’t lose too much, but you can still make a fair amount every year. It is regarded arguably as the best investing book of all time, by a billionaire named Warren Buffett. It has been updated since it’s creation in the 1930’s, to apply it’s principles to a more current market condition. It is a great way to ensure that you will almost certainly not lose all of your money. This is probably the best way to invest, because it helps you gain consistently over a long period of time with a low amount of risk. You may not make the large gains promised by penny stocks, but you will still be investing in companies that aren’t as well known in order to take advantage of pricing blunders.

Linda asks…

stock market investment?

I was reading on which reviewed Fortune Minerals a week ago as its “stock pick of the month” that CIBC world markets started to cover it. Today Fortune Minerals increased 10% would this be a good buy, how could I find out more information about Fortune Minerals.

Does a company like CIBC world markets that starts to cover stocks increase a stocks share price and why?

John answers:

I sunk all my disposable income into starbucks, i hate their coffee but they always make money regardless of how the economy is.-blurey

Ken asks…

How is Merrill Lynch Service?

I’m about to open an account with Merrill lynch wealth management to deal with family retirement investments. My financial advisor is fee-only charging 1% of managed assets. Does ML provide good investment research, stock-picking, and financial strategies for the price?

John answers:


Merrill Lynch provides excellent services to suit your needs.

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Susan asks…

How to be the top winner on a virtual stock portfolio contest?How to pick and decide the best stocks?

John answers:

Well, part of the battle is picking the right stocks…but learning at what price to buy and sell is just as important. You need to find a methodology that will suit your personality. Do you want to get in and out quickly, or look for stocks with potential to shoot to the moon in a few days or weeks? Ask yourself that question, then figure out a good strategy for looking for such stocks, and a system for buying and selling.

Scott Cole

John asks…

how to do a top down approach sector analysis on financial ?

top down analysis on financial in details on how to do it step by step and picking the stocks

John answers:

Use Yahoo’s html stock screener, sector = financial. Then I’d sort on price-to-book, debt-to-equity, return on equity, and PEG.

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