Your Questions About How To Pick Stocks To Trade

Sandra asks…

If one was good with trading options, how should he/she start a subscription e-mail newsletter?

I want to know how to start an subscription e-mail newsletter that has stock option picks in them. I’m young, but I’ve been studying/trading stocks and options for 5 years which is long enough to know that some fundamentals dont really have an much of an effect on stocks in the short-term. I have been able to turn $175 into $800 since April though.this year from using an idea I came up with thats seems to work for me.

John answers:

Back test the idea first. Few months does not mean anything. You need to survive all kinds of markets.

Mark asks…

I want to combine other people’s money (up to US$50) with my stock picks and my money. How do I start?

Commissions wouldn’t be a big cut of profits if I could combine my small amount of money with others’ small amounts. I would pick the stocks and we’d all have shares according to what we contributed. Do I need any licenses, permits, etc? (I already have a broker to do the trades.)

John answers:

Start an investment club, They are usually formed as partnerships.

Sharon asks…

Can people actually predict at any given time whether a stock will go up or down when proof shows not?

When in fact the best your going to get out of a stock is a general trend of up or down or an estimated price within one year. If your trying to predict at any given time by patterns of other things whether it will go up or down many times you will be false. So basically the way to invest is pick stocks that in general will go up and in my opinion the ones that IN GENERAL with no set pattern go back up are the ones that most people are scared of and think suck like I bought BAC at 18-20 bucks a share people were scared of it and it shot up but I wasn’t trying to make any great timed predictions with charts or anything. How many of these chartists actually make money net income at the end of a year off their trades?

Peace

John answers:

You got lucky with BAC. You bought when everyone had been panic selling. Sometimes this works, sometimes it does not.

There is no sure way to predict stock prices.

Good luck!

Susan asks…

Is E* Trade stock buying for me?

I am 25 single mother/college student, my pay check allows me to live month to month. I am planning on investing $1,000.00 in the stock market for long term gain. I am not looking to make a “quick buck” I want to set something stable for my children as well as start to build a portfolio.
What company is best for me to use?
What are average fees?
How do I pick the best stock?
I just need general help in getting into the stock market so any book suggestions will help as well.

John answers:

1k isn’t much at all to invest on equities. Theres really nothing stable price wise in this market. We’ve been down for the past six days. If the think the market will grow and continually expand over time of you and your childrens life? How about a basic index? Dia or spy. Track the basic market as a whole. For such a low investment allocation; interactive brokers, zecco. But who knows how or if they’ll stay in business or raise fees for inactivity in the future? Pick a stock you like, trust, and can afford to lose a little money in. We all need general help o the market now. Nobody knows for sure what’s going up. We’re buying lottery tickets for the time being.

Joseph asks…

What is a good STOCK PICKING book for beginners?

When I say beginner i don’t mean brand new, I’m only 16, but i’ve already read a few books for beginners on the basics of how the stock market works and how to read a stock quote. I have bought a few stocks and actually made a little money but that was all blind luck im looking for a good book preferably on how to pick good short-term stocks, im smart but not very patient. If you know of a book ,preferably from this time period and not one that talks about how the internet is the “future of stock trading”, and outlines how to find a stock you may be interested research it and decide weather or not it is a good stock. I’d like something that helps me work out a system and reduce the amount of luck involved in my trading.
Thank You,
Brian Knight

John answers:

Hi,
A good practical way to have way an experience for investing into stock market is play dummy game on site called moneybhai.com

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