Your Questions About How To Pick Stocks

Mary asks…

When picking International stocks, is their something else im looking for or no?

is it pretty much the same method when picking stocks in the U.S.A.?

John answers:

Yes basically you should look look at all the facts you would look at in a domestic (American) stock.

But you should also look at the currency exchange risk. To give you a couple of examples, look at all the European stocks you could have bought about 2 months ago. The Euro was priced at $1.50 a piece, but has recently dropped to $1.20, or you need less American currency to buy the same stock today, even if absolutely nothing has changed with the company itself and sells for the same price in Euros. But your investment in that stock is worth 20% less in American dollars.

Conversely, you could have bought 100 shares of a Canadian stock, say at $10 Canadian (CND), which about 2 years ago was worth $8 American (USD). But a few months ago the Canadian dollars rose in value against the American currency, to about 1.05 CND per 1 USD. Therefore your investment 2 years ago at USD 800 is now worth about USD 950, strictly because of currency fluctuation, and not because of any change in the company’s fortune or the market in general.

That’s the main added risk or reward in international stock. But consider also that the reporting requirement of US companies to the stockholders and the SEC is much greater than that of say Chinese companies, so you don’t really know if they are telling you the truth and nothing but the truth. Good luck.

Lizzie asks…

I am currently working towards a bachelors degree with finance major?

After graduating will I be able to pick good stocks and bad stocks? Right now, I am still about half way done!

John answers:

NO. There’s no real courses in the Academic world that will completly give one the understanding of or the ability to determine good stocks from bad stocks

This type of knowledge could be gained on your own by reading
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
The Warren Buffett Way by Robert Hagstrom
Trading For a Living by Alexander Elder
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
The Disciplined Trader by Mark Douglas

Here are some websites that will also help you
http://moneycentral.msn.com/home.asp
http://finance.yahoo.com/
http://www.investors.com/?tn=top
http://www.rookiedaytrader.com/default.asp
http://investorshub.advfn.com/default.aspx
http://www.thestreet.com
http://www.brokerage101.com/
http://www.1source4stocks.com/
http://www.decisionpoint.com/TAcourse/TACourseMenu.html
http://stockcharts.com/
http://www.grahaminvestor.com/
http://www.thestreet.com/
http://www.morningstar.com/
http://www.dividenddetective.com/
http://smallcapcenter.com/index.asp
http://www.schaeffer.com/
http://www.zacks.com/
http://screen.morningstar.com/StockResults.html
http://www.options-trading-advice.info/

I started investing in grade school and trading in high school, by the time I was in college I could easily go one for one with those that taught finance and economics.

Try to study on your own, you’ll be suprised that many professors will not be able to properly answer some of your questions.

Go for it, study hard, you’ll never regret it

Sharon asks…

How does one start investing in stocks, such as Apple/Google?

I am only 19 and would like to start investing in some stocks. I don’t know how to do this. But I am not much of a gambler, so I would like to invest under 200. I saw I could buy Apple stock for 119, but I don’t trust the website. Any suggestions or comments???

John answers:

To start buying share is as easy as opening an online trading account or register with a broker. And $200 is not enough. Put cash aside, what you need now is the knowledge on how to pick a good stock, how to calculate its intrinsic value as well as its margin safety; more or less Warren Buffet’s secret to his successful stock investing records.

Daniel asks…

How to persuade my parents to get me a kitten?

heya guys!
can you tell me how to persude my parents to get me a kitten?
this includes :
-the cost of vetirinary treatments (in £s)
how much the cat will cost (in £s)
-and all other stuff like toys, food etc.

And another Qs are cats good pets or would another pet be better (apart from a dog and a hamster) ? 🙂

Thanks!

John answers:

I would always suggest getting a rescue cat from an adoption centre. Older cats are always in greater need of homing, are ready house trained, neutered/spayed vaccinated, wormed and usually microchipped. You are usually asked for a donation to adopt and aren’t obligated to pay a fixed sum. They usually have seen a vet and been diagnosed with any health problems, so there are no surprises and often the previous owners give other information, such as personality and preferred food.

Younger cats I would recommend insuring, for older cats, just put the equivalent of an insurance premium into a savings account if you can (some won’t insure older cats, others will increase the monthly premiums so it’s not cost effective). Cats are not expensive as long as they don’t pick up illnesses and injuries, another good reason to get an older cat.

Yearly booster vaccinations in the UK are about £30, food would be about £5-£15 weekly depending on brand and type (wet- tins, pouches, trays and dry/crunchy). They need their own bed, litter tray and scratching post, which would be around £20-£30.

Lots of cats are happy enough to play with ping pong balls or even things you can get for free/cheaply such as feathers, plastic straws, conkers or shelled nuts (or even a ball of their own hair!).

Maybe you can persuade them about the benefits of owning a cat, such as learning responsibility of caring for another creature, learning how to use money wisely and the health benefits- stroking cast is good for you as it can lower you heart rate.

Getting an adult cat could help show that you are prepared to look after your new pet long term. Parents often are concerned that their kids will play with the kitten and lose interest when they grow into adult cats.

Also, is there someone who may need a cat sitter that you know in the near future? Perhaps you could demonstrate how dedicated you are by doing some cat sitting first?

Remember a cat will live to 16 years and possibly a lot longer. My previous cat lived to 20!

Finally, borrow some books from your local library- most stock books about keeping cats and cat care.

Laura asks…

How to make a reservation at an Apple retail store?

I want to buy an iPhone 5 at my local Apple store, but they said they were sold out, but they were soon going to be getting a shipment in and that I should reserve one online. I looked online but it only said for business and genius bar. How do I make a reservation for the iPhone 5 to pick up at the store?
Also, will I have to pay for it when I reserve it, or when I pick it up at a store?

John answers:

Go onto Apple.com/retail between 10:00 P.M. And 4:00 A.M. And there will be a link right there. This is the only time you can order an in-store pickup. It will still say unavailable if they are out-of-stock.

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