Your Questions About How To Pick Stocks To Buy

Jenny asks…

how to buy stocks with 401 k money?

as we know, we can only pick from mutual fund list…

John answers:

You can only purchase what the 401k Plan offers to you–if stocks are available (also known as Self Directed Brokerage), then you need to approach your employer for an account opening form, as these types of investments are typically held as additional accounts within the 401K plan.

Just a word of advice though, a 401k is a long term savings vehicle. It is not created for an individual to practice any sort of market timing or day trading—that being said, if you are sincerely interested in purchasing stock, you may wish to consider blue chip or large cap stocks in the interest of long term security and growth.

If you are interested in day trading, you may think about a brokerage account and a good, trustworthy financial advisor to recommend some safe yet aggressive stocks.

Good luck!

David asks…

Do people follow the stock picks that major Hedge funds buy?

How are you supposed to know what they have at a specific time? I read articles in Bloomberg and Marketwatch saying what the hedge funds own but how do you know its not month old or week old info?

Thanks

John answers:

Hedge funds hedge. Such arbitrage opportunities are very short lived and are removed from the market by the hedge funds exploiting them. You wouldn’t be able to follow a hedge fund fast enough to get in on the hedges. You either join a hedge fund or look for smaller arbitrage opportunities that are too small or have insufficient liquidity for the hedge funds to be interested.

Carol asks…

i want to buy stocks–how do i do that?

how do i go about getting stock, investing money in it, how do i pick which is better, where do i go to get started??

John answers:

1. Educate yourself- library and internet, investing online for dummies is good, yahoo finance is helpful

2. Join a cheap trade online website, ( i use scottrade but their is etrade and others out there)

3. Deposit money in your account and buy a stock you have researched. Buy more than one stock to diversify and limit your risk.

Good luck its not really that simple and go in expecting to lose some money and chalk it up to being uneducated and you wont be as disappointed. Also if you do well at first dont let it go to your head because your next pick could be a bad one!

Joseph asks…

what is the benefit of stock bonds, and how should I buy one?

I know I have to do my research picking an appropriate stock, however; I have no ideal of how to buy a stock. Can someone answer my question please?

John answers:

I advice you to learn the basics first….It is a learning process….Research in the internet

Mary asks…

First time I want to buy stock?

I have deposited a little amount and the broker is giving some credit for me to do trading.

However I am trying to do day trading (like 1 or 2 or 3 trades a day) but I find it very difficult to choose what stock to buy, I tried to buy MSFT and was waiting for it to come down first then I buy but it didnt happen lol

How do you guys do it?

I want to switch to stock marketing in future as a job so I am trying to learn it with a small money.

How do you guys pick stocks? Is it good to trade MSFT or APPL?

Thanks in advance

John answers:

Unlike others, I won’t preach to you about how and why you should do such & such with your money. It’s your call and I respect that.

Instead, I’ll suggest you hold off investing until a few months from now when there will be more stability, hopefully. We are in the midst of a correction and it’s not likely to resolve until April or May. So far, over the past three weeks, the market has given up 10%. I expect it to give up another 10 to 20% over the next month or so. Your $10,000 could wind up diminished significantly, worth only $8,000.

I do some day trades. I never day trade a stock costing more than $25 because I’ll never make enough to be worth it. Today, for example, I picked up 2,000 shares of JADA, a Chinese jade manufacturing company serving the Chinese Mainland. I paid 33.5 cents per share, just now I see it closed at 38 cents. I’m ahead $90. It normally trades much higher than this so I intend to hold on for the time being. If it should drop back to 33 cents, I’ll add another 2,000 shares, knowing it will have the same opportunity to rise to 38 cents it exhibited today. That means things are stacked in my favor. It also means I could wind up $180 ahead based on 4,000 shares moving from 33 cents to 38 cents. And with 33 cents representing the bottom, my odds are good that it will rise above 38 cents, thus bringing me a strong potential for several hundred $ in profit.

A few hundred $ means nothing to me—but with 27 stocks in my portfolios, I look to make a few thousand $ in a week. Today I pulled ahead just short of $3,000—$2,800-something. If each week I can pull ahead that much, and I usually do…then I’ll come out ahead $150K/yr. I’m happy with that because it’s more than I need and I love this work.

Go to: www.investorvillage.com and in the search box, type: JADA. Look at CNOA, CKGT, BSPM, LTUS—these are companies sometimes incorporated in the US but all do business primarily in the People’s Republic of China. China is the primary economic driver today and I’m heavily invested there and doing well. You could look at thousands of companies, of course…but looking into these will lead you to others and that will gve you a broader base from which to look at things.

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