Your Questions About How To Pick Stocks

Betty asks…

how can i learn to trade in the stock market?

what books, websites, or even classes are out there to teach to how to become a smart stock trader and not ur run of the mill gambler or crowd follower.

should i focus on the technical or fundamentals; should i combine both when considering a trade.

i want to invest in the stock market, along with the real estate market, and i’m looking for the best road to get there.

John answers:

There is so much out there you can spend your entire day “educating” yourself without ever getting around to actually trading.

You need some short cuts.

1) Do a search on Amazon for books on stock trading and review those with the best reviews. There are several good systems. Pick one you are most comfortable with and stick with it.
2) There is only so much books can teach you. Join a stock picking group and talk to other traders who are in the trenches right now:

http://finance.groups.yahoo.com/group/TradingZoom/

Thomas asks…

How do I work website truWest?

i dont understand how to pick out certain things and buying them.

John answers:

Custom sports gear ???

Have you tried clicking on the ‘Ordering’ option (4th down on the left) that takes you to the ‘How to order’ page ?

NB Their web site functionality is extreamly poor = it has no ‘Shopping Trolly’ system and plainly the site is not connected to any back-end computerized stock control system, so it’s anybodies guess if they have the items in stock or not …

All the ‘Times Roman’ (default fonts) make it look like something a teenager has bolted together using MS Frontpage … I would not touch it with a barge-pole…. If you really want to order, I suggest you first get their Catalogue and then phone them up …

Daniel asks…

How do I make my Mom realize that she’s losing money instead of making money selling Avon?

She started selling Avon 3 months ago and I noticed she loses money selling it. Some customers don’t pick up or pay for their orders and my mom has to pay for it. Also she doesn’t know how to use the internet so she she makes me input the orders for her. Also it’s annoying that alot of their items are out of stock when we order them and are shipped til the next order comes in, so some customers get mad about that.

John answers:

I understand how you feel because I sold Avon last year. I ended up spending more than I made. If your mother does not charge enough for tax and shipping, and even paying for the products, she will always be in the hole. Avon makes you pay the owing bill whether or not you have collected from the customers. Then of course, I ordered for myself things that looked good, but didn’t really need. One positive thing is that I had gifts for everyone for Christmas, but if you are looking to make a lot of money off Avon, I think there are better ways. Let her see the invoices and make a sheet of income and money paid so she can realize that it is not lucrative. If she is only doing it for fun, that’s another story, but if she really needs a job to make money, she maybe should try something else.

William asks…

How powerful is the technical analysis of shares of stock market?

The support level & resistance level if followed closely can help to pick up bright stock.

John answers:

Its powerful because alot of traders subscribe to it. Lets face it the market is run by people not numbers. See what everyone else sees and you catch a good pick. I subscribe to the band wagon theory. However don’t ignore fundamentals. Try to find a good combo that works with your strategy.

One more thing, TA is more important to Day, Swing, and Pattern (Shortterm) Traders. However longterm investors still look at charts.

Jenny asks…

What methods can be used to determine which stock sectors and which stocks in them are the best?

Since the best sectors and best stocks change I want to know how to find and track them. Anybody know?

John answers:

I recommend what I use:

1) Free – Stockcharts.com, marketcarpet, S&P sector (US mkt) and Fidelity funds (world mkts)……..I also pick leading stocks/funds representing different major sectors into sharpcharts interactive where you can plug in up to 10 on one screen, vary time horizons ie there you can see LA has broken out above the pack, and agriculture, gold, oil, nat gas all doing well.

2) Free – morningstar.com, markets, click morningstar indexes under sector deltas triangle, click sectors and industries for more detail cut.

3) Fee – Investors Business Daily – Sectors page (can’t be beat for technical + fundamental view), also, the best authority on the overall mkt which adds 75% weight to the equation. Read “The Successful Investor”…..do you know 80million people lost between 50% – 80% of their life savings in the 2000-2002 bear mkt, which most will never get back.
A drop of 50% means you need to gain 200% to get back to break even, and a lost of 80% means you’d need to gain back 500%. In my opinion both the book and investors.com are worth the money.

4) Hefty Fee – Dorseywright.com(advisor to big investment firms), the best technical view of sectors there is

Good Luck and Good Investing!

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