Your Questions About Money Making Stocks

Chris asks…

How do I buy stocks? then make money?

I have always wondered, how do I buy stocks? How do I find the ones that will make me money? HOW DO STOCKS MAKE YOU MONEY? How do you get your money? pretty much, I need the whole scoop on stocks.,… thank you

John answers:

Look for stocks that offer 12-15% earnings per share growth rate as well as return on equity. These two indicators show that the stock have niche product with good demand and good management team too.

Then calculate its intrinsic value after projecting its future earnings. This can be tricky but i’ll tell you later how to go with it. Then buy the stocks when the price is within your margin of safety. Hold this stocks forever, and you will be on your way to wealth.

Nancy asks…

Can we make money in Stocks?

Hi everyone,
I am 25, thinking to invest in Stocks.Could you please tell me whether can we make money in these economic crisis ? If yes, I should go for short term or long term? Or else is it a waste of money if I invest now. My savings are 5k. Moreover please suggest me a book or website which provides a basics on stocks ? Thank you very much for your valuable suggestions.

John answers:

Gain maximum profits in the stock market:
http://ezinearticles.com/?How-to-Gain-Maximum-Profits-in-the-Stock-Market&id=1240670

Check out Sogotrade FAQ section for the investors:
http://www.sogotrade.com/Help/FAQ.aspx

This is the research section offering free research tools:
http://custom.marketwatch.com/custom/sogotrade-com/html-research-overview.asp

This is the glossary section:
http://www.sogotrade.com/Help/Glossary.aspx

Robert asks…

What stocks can I invest in to make money fast (Stock Market Game Question, game ends on 4-21-08)?

Hello! My team was in first place until someone invested in Bank of Amercia.. Needless to say, with recent events, it backfired on us! So now we are in last place, and I would love it if you could name some stocks that will help us gain money in these last few days.

Please and thank you!

John answers:

Fslr (first solar)

stay away from financial until at least next quarter
watch Citi Earnings
wells Fargo did OK but its hard to see where the market is going

Cbli may be a good play because they just came out with some positive news on a new drug that can protect healthy cells in case radiation.The Dept Of Self Defense just awarded them a contract. I believe there may be some use for this drug with treating cancer patients . The stock is supposed to have a target of 13.00. It is trading around 6.00

GOLD- Check out AEM

Also JNJ-Johnson and Johnson
just came out with great quarterly

even though the project ends 4-21-08 you may want to bring this point up to your group—->

Apple- I would buy this as soon as the next gen Iphone comes out- this should be great for 3rd quart earnings. Last year in September Apple rocked the market, this was after the first iphones were released. The next gen Iphones hopefully will be released in June (earliest May) check out Apple stores and see if there is a demand. If you see people lined up at 6am at an apple stores after the next Gen Iphones are released this is a for sure play

Keep in mind demand=stocks go higher
supply= stocks falls

Good luck with your project

Sharon asks…

do i need to sell my stocks to make money?

or will i make MORE profit from the dividends?
All i care aout is making the most money!

John answers:

Holding a stock is fine if you believe it will continue going up, and it’s a strong company with strong earnings.
If your company pays you a 4% dividend every year, but it’s stock price is falling on average 4 or 5% a year, you’re breaking even (and actually losing money due to inflation). But if your stock price keeps increasing steadily, that’s very good, because you’re actually getting a tax-deferred capital gain, (you don’t pay tax on capital gains at all till you sell). And if you hold your stock longer than a year, your capital gains taxes are quite low – 15%.
If you have a DRIP plan – dividend reinvestment plan – that’s even better, because you’ll build up more shares !
In short – research your company, and keep your eye on it every week to see how theyre doing. If you don’t anticipate your company making any profits for a long time, i would think of selling and find another more dynamic company which pays dividends.

Mark asks…

How to buy stocks and make money?

I have about $200.00 that I can spend… I would like to buy some stocks. My question is which company should I buy into and how?

John answers:

Do nothing until you know what kinds of stocks to buy and under what circumstances to sell. Go to the local library to find books on stock investing. A few good books to start with include “The Intelligent Investor” by Benjamin Graham, “Secret Code of the Superior Investor” by James K Glassman, and “The Future for Investors” by Jeremy Siegel.
Also see Invest in Stocks.
Avoid the common mistakes that plague new comers to the stock market, chief among which is speculation in stocks.
Put your finances in order. Pay off as much debt as you can and minimize the loans you’re taking out. Ideally, all high interest rate loans should be completely paid off first, and the only loan, if any, you should have is mortgage on the home you live in.
Build three to six months worth of expense in a separate savings account before you start buying stocks.
Make a wish list of stocks to buy.
Choose a reliable discount broker. Since this is a fast changing field, just search online for “discount stock brokers” and see what comes up.
Minimizing fees and expenses is key to successful investing. Most discount brokers charge less than $10 commission per trade, regardless the size of the trade
Send the broker an initial deposit of funds. (Your broker needs this money to purchase your stocks.) The usual minimum is $2000 but can be as little as $500.00. Some online brokers don’t require a deposit at all.
Your broker must report your stock trades to the IRS. You will need to fill out the required forms and mail them back to the broker, possibly even before they will allow you to make your first trade.
Select your stock, notifying your broker of the company’s “symbol” (a 1-4-letter code), the price you’re willing to pay per share, and the length of time for which your offer will be valid (e.g. Single day vs. Good till Cancelled).

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