Your Questions About How To Pick Stocks

Paul asks…

I need to pick 3 stocks for school project…help!!!?

I am in a business math class and the assignment is to pick 3 stocks and write a page about why I picked them. We just started to learn about stocks, so I am unsure of how to do this. I have to get this done by tonight so any help would be great. I dont even know what site to go to.

John answers:

K, I did a similar project in my Economics class. I went to “money central” on You could also try “Yahoo!Stocks”. I would definitely choose Apple. It earned my group a lot of money, and buoyed us up when our other stocks fell. Plus, the iPhone is coming out soon, and you know the stock is going to skyrocket, so you’re sure to make a ton of money. You can also always go for Coca Cola, GE (General Electric), or Verizon, if you want steady stocks. ANF (Abercrombie and Fitch) could do very well, depending on the season, so you could check that out. Also, if you have the money, definitely invest in Google and Sony. Google is over $400 per stock, but is very successful. Another stock you can try is SBUX (Starbucks)…it made my mom a lot of money. Another type of stock you might want to look into is foreign car companies (especially Japanese companies, like Toyota and Nissan, which are very successful right now) because they are producing the most hybrid cars, and alternative fuel automobiles are selling like crazy. As far as I know, all of these stocks are on the NYSE (New York Stock Exchange). Good luck with your project! I really hope my advice helped! 🙂

Chris asks…

how to pick winning stocks < is there agame plan as lots of company advertise ?

John answers:

It is not a game plan, you have to be patient, learn how to invest the right way. Turn off CNBC, when you heard on TV, it is already too late. Learn how to choose stock as the you pay for everything else in life. Paying at the cheap price and on sale in turn you can sell at the higher return at the later. Constant monitor your investment.

Yes you could learn invest by yourself. It is your money, you should know how to do with it. For starter check this site out.

Http:// section university. A lot amount of information. It will serve you well
I accumulate in good amount in 401k at the young age.I could share with you. When consider invest in stock market. You should consider basic 3 things:

fundamental analysis==(economic data,finincial health, management, business model, competetion)>>what to buy

technical analysis==(chart+indicator)>> when to buy

Sentiment/schycho analysis==>>mood of investor, Contrarian point of view.
Market cycle===>> check out book Trader Almanac by jeff hirsch will give you inside stuff
When you combine 3 thing, It is one of the powerful knowledge goinh with you for the rest of your live

At the age of 32. My 401k is amassed 75,000.00 and 30000.00 in taxble account. By follow simple rule

Mark asks…

What’s the best way to pick winning stocks?

About 5 weeks ago I started paper trading with Think or Swim and made some trades based on certain criteria.

Ex: I purchased 10 stocks that happened to be currently in the same pattern, another 10 stocks that were rated bullish from the Chaikin website, another 10 stocks that had the 20 MA above the 50 MA & another 10 stocks that met certain criteria like…Volume >500,000 a PE ratio currently lower than it’s industry’s PE and the stock has also reached a new/recent high.

Earlier this year when I practiced paper trading I did okay, however, I never really new why I picked the stocks I did. This time I want to know why.

Anyways, I’m simply wondering how others pick their stocks and if the formula or criteria they use really helps. I’m not interested in day or swing trading. My goal is to find 2 or 3 good stocks, purchase what I can of each stock for $1,000 each and then hopefully sell them at a profit in the next several weeks/months, depending on how well they’re doing.

Also, is an 8% loss limit a good limit to use to minimize my losses? I heard 10% is ok and read somewhere that 3% is fine. Just curious what others recommend so they don’t get stopped out too soon.

Thanks in advance and any suggestions would be greatly appreciated.

John answers:

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Steven asks…

How do i pick a stock, What do i have to look for in order to pick a stock?

Am i looking for a EPS lower than 20 w/ a dividend and a low P/E, high market cap. I don’t know what i need to look at in order to pick a stock.

John answers:

Subscribe to a newspaper like the Investors Business Daily (IBD), which has a pretty good stock rating system and they give you a course where you learn how to use and interpret their ratings. A 2 week free trial is available from IBD.

The EPS is a very useful tool for stock analyses, but varies from industry to industry and even from company to company. An arbitrary pick of a company with a low P/E is no guarantee for success and more likely will result in losses.

The old game. You have to educate yourself first. IBD or to a lesser extend the Wall Street Journal are helpful.

Lisa asks…

how to pick oil stocks?

Hello everyone.
Can some one explain to me how I should go about researching companies in the oil business that reflect their return on the price of oil per barrel?
I’m not very experienced in the stock market so can you please tell me how to go about picking the best bet in oil.
Thank you for your answers

John answers:

The is an Oil ETF that tracks oils movement (USO in the United States), if you want a direct exposure to oil. And there are always the big oil companies (Exxon, Chevron) But some other ideas would be the infrastructure manufacturers of the energy sector. For example: the firms that explore or test drill, and firms that build oil platforms or pipelines.
It all depends on your risk tolerance level and expected return.

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