Your Questions About Paper Trading Site

Mark asks…

What site is the best to study investing?

I been curious about investing. I don’t know even a basic rule about investing, I just a teenager, so I think it useful to study how to investing now, so do you guys know what site for me to study investing from the most basic rule and how to investing from a to z ? thanks!!
Thanks for all the answer you guys, I appreciated.
Although I already choose the best answer,
but Hoa N your answer is good too, thanks!

John answers:

Investing is a life long endeavor. The basics can be easily mastered, but most people confuse ‘trading’ with ‘investing’.

Those in their 20’s and 30’s must become very proficient at accumulating and investing wealth, more so then any generation before.

Yahoo finance is as good a place as any to learn the basics
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/etf/education
http://finance.yahoo.com/bonds/bonds_101

My only advise is don’t listen to anyone here or on TV about WHAT to invest in. The following are some practical steps to get you on your way to LEARN for yourself.

Step 1.
First decide what kind of brokerage you want to work with. You can open a brokerage account in your bank, with a large full service brokerage or an internet brokerage. I find when I get help, most people want to sell me things that are better for them…. So I use http://www.scottrade.com because it’s cheap and easy with low frills. I like their streaming quotes and I do my own research and make my own investments. But any low cost internet brokerage service is fine.

Step 2. Get a subscription to Barrons or Investors Business Daily… Do this for 6 months or a year. At first, It seems a bit mysterious, but pretty soon you start to understand the terms and things that investors are looking for and what they are afraid of

Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and second you have some homework in Step 4 to do before you do any investing.

Step 4. Go out to the internet and search on the following subjects. Become very familiar with the concepts.
Asset allocation
Long term investing
inflation
Roth ira vs ira
Large med small cap
Value vs growth
Indexed mutual funds
No load mutual funds
ETF
Sector funds
Bonds CD preferred stock
dividends
International funds
Market cycles
volatility
Fundamental analysis
Technical analysis
In most cases, I think it is wise to use indexed mutual funds and ETF to build the base of your portfolio.

Step 5 go to http://clearstation.etrade.com/ and sign up for a free account. Play around there by looking at graphs and fundamentals. If you click on the graph names, you will get clear information about what the graph is based on and how to interpret it. I think it’s also a good idea to pretend you have $10,000 and start buying and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money then real money….
WARNING: don’t rely on technical analysis alone. These graphs are good at telling you WHEN to buy and sell, but now WHAT to buy.

Step 6. It’s always a good Idea to see a CFP (certified financial planner). Their job is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits, insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types to keep away from.

Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.

Don’t get involved with futures, currency, options (unless you get stock options at work), commodities, annuities or other derivative type investments at this time.

Good Luck

Helen asks…

Why do people still download Bonzi Buddy if the federal trade Commission already classified it is spyware?

Bonzi Buddy is spyware people. Don’t listen to that old rapist on youtube. The federal trade commission classified Bonzi Buddy as spyware. Why do people keep downloading him?

John answers:

Same reason people still use AOL, write up papers using Excel, install 14 toolbars in their IE 6 and then wonder why their systems are plagued with viruses.

People are dumb when it comes to computers. They don’t understand them, and they are embarrassed to ask for help (probably because us IT people call them dumb….). Virus makers would be out of business if it weren’t for these people. Same thing with the spyware folks.

My family calls me for tech support all the time…and I always have to tell them “Dude, you need to stop clicking ‘yes’ on every pop up you see. And for chrissake, why do you keep installing these games from random internet sites? It’s no wonder you had 43 credit cards opened in your name last month alone”

Jenny asks…

I am a biginer in share trading. What is the deciding factor when we buy a company shares?

Dear Friends,
I am a biginer in share trading. What is the deciding factor when we buy a company shares? also want to know what is book value and earning per share.Please replay

John answers:

In the beginning “newbie” traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

In the beginning you LEARN HOW:
A] the stock market works.

B] to invest in many, many various ways.

C] to properly trade

D] many other concepts and aspects.

Beginning or novice [‘newbies”] investors and traders ALWAYS make mistakes. In fact, throughout a person’s avocation or hobby to do trading, he/she will make mistakes.

In the very beginning, you READ AND LEARN about the market and how it works:
Read “Investing for Dummies”
As you are reading and doing research about the investments you are interested in, sometimes you’ll come across a financial or investment term you never heard before.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopedia’s dictionary.

Http://investopedia.com is a free site. It’s recognized by Y! A as a “Featured Knowledge Partner”.

It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

Http://finance.yahoo.com is also recognized by Y! A as a “Featured Knowledge Partner”
END E-MAIL #1
The thought processes are:
1] to have more successful trades than failing trades.
2] to minimize the losses of those losing trades.
3] “To live to trade another day.” Having enough money in the trading account to return to the market.

ALL this is accomplished by a few true expressions used on Wall Street:
Some trading expressions come to mind:
A] “On Wall Street there aren’t any gifts.”
No one gives anyone else anything – not even stock tips.

B] BUlls [BUyers] earn money.
BEars [SEllers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

C] “Trees don’t grow to Heaven. Neither do stocks or any other investments.”
In other words: What goes up, MUST come down!

D] “Plan your trade. THEN trade your plan!”
Have a trading plan with rules for that plan for each strategy.

$____ may not be enough for you to get started. I want everyone to know I DO NOT own any portion of this man’s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I don’t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.
You should buy a copy of this book:
“The Richest Man in Babylon” by George S. Classon. You can get the book on http://amazon.com
Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages – Let’s count
1 – 2 – 3 – 4 – 5 pages of this book – or any book – each and every day.
OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

John asks…

How can I drive more traffic to my site?

http://www.heelstohammers.org

I am trying everything that I can think of without going broke, and I can’t seem to get many hits. I know the site isn’t perfect, but we are still working on it.

John answers:

It just takes a lot of consistent work.

Put it on every outgoing correspondance you have – mail, email, packages, etc. – the outside as well as the inside – have a stamp made. I also write it on every credit card slip I sign.

Put your name on every affiliat website you can find – free ones. For example, a local magazine or paper might list you on their website.

Join a networking group and go to the meetings – a newer one is usually less expensive – around $50 for dues yearly dues.

Collect an email database and send out emails – always use a disclaimer that they can opt out of the emails.

I set up a booth in trade shows and that has driven more traffic to my site than any other advertising I have done, but this may not be for you.

One thing I noticed about your site – I did not understand what you were atempting to get across to me right away. Most people make a decision whether they will stay at the site in one second.

Get friendly with business associates who will list you on their site. You may in turn have to do the same. For you possibly women’s liberation groups, local college websites, some non-profits may even list you.

I know some groups would LOVE for you to speak at their breakfast or lunch networking sessions – this is a fabulous way to get your name out and get a free meal to boot!!

Good luck marketing – this is the hardest part and most time consuming part of my business. I spend at least 4 hours a day on it – 7 days a week. Then I spend 4 on customer service, 2 on production and 1 on accounting. Yes, I am exhausted, but loving every moment of it. I hope your business brings you as much joy.

Sandy asks…

what is the best and safest site to invest and trade online?

i don’t want to be robbed again by HYIP. i want the real company that provides investment and trading, real business. not just fake websites that pays for a period and then gone with the money. thank you.

John answers:

You don’t want to be “robbed again” yet you ask strangers whose qualifications and motives can never be known.

Brilliant! You’re setting yourself up for failure (again). Is it bad luck or do you contribute to your “bad luck”?

How come you never thought of reading some books? Reading magazines & news papers that focus on investing and trading (major, national with very large circulations)? One things for sure….. Self perpetual ignorance can be very expensive.

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