Your Questions About How To Pick Stocks To Buy

Steven asks…

Stocks I should pick for project?

For my history class we are doing a project where we get to pick 3 stocks and buy as many shares as we can with $5000 dollars for each company. And everybody is going to give 2 dollars and my teacher is going to give ten to the winner, which is going to add up to about $70. And to win you have to make the most money on your stocksout of the whole class. And we are going to see how much money we made on the stocks at the end of the year around July 10. So what 3 stock companies should I pick to make the most money.

John answers:

…bet on ” Emerging Markets”…with a chance at 3 times what they actually do…EDC….
..bet on “Energy”….with the same type 3X ” leveraged” fund……..ERX
.. Or try a few stocks that jump when the market does….CAGC…TBSI….YONG…TQNT….

Donald asks…

NSE INTRA DAY TRADER HOW TO PICK STOCK TO BUY OR SELL DURING MARKET HOURS ?

I am a day trader, i trade in nse/bse stock any one here can tell me help me getting the information about picking up the stock moving up or moving down or can move up or down, auto buy/sell signal so that i can trade.
If any one know any website, free software, chatrooms where i can pick the stocks to trade please mail me i will b very much oblige thanking you.

John answers:

Sir,
Since I find you look quite desperate in your intraday trading, I would like you to give some tricks of the trade. Of course free of cost !!
1. Don’t try to take a big hand in one shot. BE A SCALPER.
It means try to do small trades and take small profits in maximum number of times in one trading session. You may incur loss also in several small trades. But the cumulative effect of the total sum may give you the required profit for the day.

2. Use Intraday charts for seeing the trend of the stock chosen. E.g. From icicidirect, yahoo finance etc.

3. Never try to trade against the trend of the stock & the market.

4. Always remain watchful for the overall effect of the market/index on the stock chosen.

5. Before starting the trade or choosing the stock it is always wise to watch it’s previous charts and graph to find out it’s (a) pattern of movement, (b) range of movement, (c) trend of movement and of course (d) support and resistance level for every range.

6. Always try to trade between the support and resistance level.

7. Always use limit prices and stoploss if possible.

And Lastly
8. Be confident, dececive and don’t get emotionally attached to the stock.
9. Don’t ever try to defeat or control the market or the stock or even never be revengeful to them.
10. Choose the stock whose trading volume is large i.e. It should not be <75000.

If you find all these things difficult and want that someone should feed you the "paka – pakaya khana". Then you should try the following website. It is all free :

"www.sabfreehaimamu.com"

Best Of Luck and
Wish you a very happy and PROFITABLE New Year!!

— Nitya

Maria asks…

Where do I buy stocks?

My friend wants to buy stocks. he’s an expert picking stocks and used to do it in his country. He’s new here. and want me to help him find out how I can buy stocks and where should I go.
Also I would like to have a program to view stocks on my computer, what is the name of it, how I get it and how much. The cheaper the better.

Thank you if you can point me to the right direction.

John answers:

I personnaly use etrade
It comes with a free program to watch stocks and works nicely.

My blog:
http://cokeandmenthos.blogspot.com/

Mandy asks…

What is a good site for penny stocks? And how do i no what stocks i should chose?

im looking to get into penny stocks and want to know a good site for it and how do i pick witch stocks to buy?

John answers:

When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.

They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.

When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.

Here some websites that you might find helpful
http://www.smallcapinvestor.com/
http://www.stockwire.com/
http://alphaking.com/
http://www.otcstockexchange.com/
http://www.mcapstocks.com/Default.asp
http://www.pinksheets.com/pink/quote/index.jsp
http://ragingbull.quote.com/cgi-bin/static.cgi/a=index.txt&d=mainpages
http://www.swingtrades.com/

Sandra asks…

Where can we buy stocks and how can i buy stocks, how dose it all work?

i’m young (18) and i want to buy stocks but i’m not sure how much to invest or how to pick which stock is right 4 me plus i dont know how to invest or where to invest.

John answers:

Basically, you can buy stock online or thru broker.
What is Online Stock Trading? Why & How to Choose the Best Trading Platform
http://www.stock-investment-made-easy.com/online-stock-trading.html
Stock Broker – What You Can Get From Them
http://www.stock-investment-made-easy.com/stock-broker.html
How to Choose Stock Brokerage – Types of Brokerage Firms
http://www.stock-investment-made-easy.com/choose-stock-brokerage.html

and the next questions are:
so, how to know which stock to invest in?
When you should buy them?
And, how you can make money from?

Fundamentally, you can use various key financial ratios to start screening which stock worth your hard earned money. From there, you can go to the next level by further study how they perform qualitatively. Look here for more info:

How to Pick A Good Stock
http://www.stock-investment-made-easy.com/good-stock-pick.html
Guide in Analyzing Stock
http://www.stock-investment-made-easy.com/analyzing-company.html

then, you must study how much the stock worth. To do this stock valuation, you have to calculate intrinsic value. Once you got it, buy the stock when it is at its margin of safety, either it was discounted than its intrinsic value, or discounted from the past historical prices. Look here for details:

How to Calculate Intrinsic Value
http://www.stock-investment-made-easy.com/calculate-intrinsic-value.html
How to Determine Margin of Safety
http://www.stock-investment-made-easy.com/margin-of-safety.html

now the last question, how you can make money from it? Look, good company will grow over time. If you invest for your retirement, you can sell the stock after 20 years with as much as 30% return per year! Doesn’t it sounds good? And besides, you’ll be earning dividends year after year, which will also grow annually!

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