Is anybody here knowledgeable about the stock market?

[Since 1985]

I'm interested in possibly investing in some stocks. I want to make some extra money. I'm planning on acquiring knowledge about the stock market before investing though. I just wanted to know if anybody here could give me some good advice?

[~AK49~]

Id suggest instead of buying/selling stocks, look at trading 'options'. Basicallyy with options, you control the stock without having to pay for the stock in full, only a fraction of the stock price, and reap all the benefits. You can trade 'call options' or 'put options'....in other words you are betting on the stock going up (call) or going down (put). Technical analysis is huge for this, and there is alot to learn in that regard.

Theres alot to learn period, but this is where id start for you. Learning about call and put options, stop losses, and most importantly technical analysis.

Note: especially starting out, you WILL take losses. Hell, even if youre great at trading, youll still take losses. The key is to minimize the size of your losses(stop losses are very helpful) and maximise the size of your gains.

*basically a stop loss is a tool to help prevent you from losing too much ina losing trade. For simplicitys sake lets say you bought control of a stock for 10 dollars, and you are betting on the stock going up (call). You would set your stop loss at seven or 8, whayever you want. If the stock goes down, as soon as it hits that stop loss number itll sell the stock off, preventing you from losing too much in a losing trade. Takes alot of finesse, especially considering we are in a very volatile market.

[TBear]

Originally Posted by akScoundrel

Id suggest instead of buying/selling stocks, look at trading 'options'. Basicallyy with options, you control the stock without having to pay for the stock in full, only a fraction of the stock price, and reap all the benefits. You can trade 'call options' or 'put options'....in other words you are betting on the stock going up (call) or going down (put). Technical analysis is huge for this, and there is alot to learn in that regard.

Theres alot to learn period, but this is where id start for you. Learning about call and put options, stop losses, and most importantly technical analysis.

Note: especially starting out, you WILL take losses. Hell, even if youre great at trading, youll still take losses. The key is to minimize the size of your losses(stop losses are very helpful) and maximise the size of your gains.

*basically a stop loss is a tool to help prevent you from losing too much ina losing trade. For simplicitys sake lets say you bought control of a stock for 10 dollars, and you are betting on the stock going up (call). You would set your stop loss at seven or 8, whayever you want. If the stock goes down, as soon as it hits that stop loss number itll sell the stock off, preventing you from losing too much in a losing trade. Takes alot of finesse, especially considering we are in a very volatile market.

Alot more to this than I thought. I have interest in throwing a bit towards some stocks and just letting it sit. I understand it is not the way to "play the stock market" but I am just looking to having another small investment on the side. What is the best way to just buy some stocks like this and do you recommend against this idea?

[One_Profiteer]

Originally Posted by TBear

Alot more to this than I thought. I have interest in throwing a bit towards some stocks and just letting it sit. I understand it is not the way to "play the stock market" but I am just looking to having another small investment on the side. What is the best way to just buy some stocks like this and do you recommend against this idea?

If you're gonna let it sit...then I suggest you buy some tangible asset stock....like a Gold stock. Or buy some Gas and Oil stocks since Demand will always be somewhere even if not in the U.S....but emerging economies. As the U.S. starts driving less, some other country's citizens will start driving more.

[Since 1985]

Originally Posted by akScoundrel

Id suggest instead of buying/selling stocks, look at trading 'options'. Basicallyy with options, you control the stock without having to pay for the stock in full, only a fraction of the stock price, and reap all the benefits. You can trade 'call options' or 'put options'....in other words you are betting on the stock going up (call) or going down (put). Technical analysis is huge for this, and there is alot to learn in that regard.

Theres alot to learn period, but this is where id start for you. Learning about call and put options, stop losses, and most importantly technical analysis.

Note: especially starting out, you WILL take losses. Hell, even if youre great at trading, youll still take losses. The key is to minimize the size of your losses(stop losses are very helpful) and maximise the size of your gains.

*basically a stop loss is a tool to help prevent you from losing too much ina losing trade. For simplicitys sake lets say you bought control of a stock for 10 dollars, and you are betting on the stock going up (call). You would set your stop loss at seven or 8, whayever you want. If the stock goes down, as soon as it hits that stop loss number itll sell the stock off, preventing you from losing too much in a losing trade. Takes alot of finesse, especially considering we are in a very volatile market.

Thanks man, I will definitely do my research before doing anything lol.

[~AK49~]

Originally Posted by TBear

Alot more to this than I thought. I have interest in throwing a bit towards some stocks and just letting it sit. I understand it is not the way to "play the stock market" but I am just looking to having another small investment on the side. What is the best way to just buy some stocks like this and do you recommend against this idea?

Theres pros and cons, its just up to you. If you really want tp try to make it profitable, youll have to take bigger risks in what you invest in. You kinda have to see whats going on right now, and see into the future. For instance, the baby boom generation is getting about that age where they are aching and whatnot. Its a huge market. One may look into what demands this market may need in the future, whether it be wheelchairs or whatnot. You would try to look for an upstart company whos providing this demand, or future demand, who doesn't have much competition at the moment. Beyond that, its risk. Maybe the company folds or whatnot for example. (Note: it probably wont be wheelchairs, enough of those already, just an example.)

Or, you can buy a stock in a tried and true company, and judging by your reseqrch and whatnot might become even way more profitable in the future. Theres risk in investing in a bigger trid and true company like this, but the risk is smaller. That said, the stock will cost alot more to buy, so go figure. Pros and cons.

This info came out years ago, and has been gaining steam for a while now. Who knows what is going on right now as far as this is concerned, but just an idea of who/what you want to be keepjng your eyes and ears on for investements (and this may be a hot tip investment im telljng you, but oh well, just helping a brotha out. And its not just the grid itself, but everything they may need to make it practical to use for everybody, what we need/will be bought, etc);

(2001)
http://www.wired.com/science/discove.../2001/03/42230

(2008)
http://www.foxnews.com/story/0,2933,347212,00.html

[TBear]

Thanks for the answers guys, helpful and informative.

[~AK49~]

Originally Posted by Since 1985

Thanks man, I will definitely do my research before doing anything lol.

Whatever route you choose (stocks/options/commodities/etc)...technical analysis is paramount to your success as a trader. Successful investors know how to manage/limit their risk. They all take losses, but at the end of the day when its all said and done, they come out ahead. Maximize your winning trades and minimize your losing trades.

[Zarco]

I dont mess with that stuff but make sure you do your research and study a variety of sources. First and foremost, remember that the stock market is not a sure thing. It would be good if the money you trade/invest is money that you will not need any time soon just in case. Get familiar with how the stock market works by following the market for a while and reading financial news. Familiarize yourself with DOW Jones, NASDAQ(more tech related stocks), S&P 500 and look at how they weight stocks. Look into what kind of sectors/stocks you want to buy into and then look at how their value fluctuates, companies can have their share prices changed on the daily. Read different companies balance sheets to understand who you will be dealing with. Figure out if you want to do short term, day trading, or long term. Find yourself a good stock broker that offers good rates or you can go with the online firms like ETrade and Scottrade. Good luck bruh and b careful out there.

[HooksInYou]

Read The Intelligent Investor by Benjamin Graham. Graham was the mentor of Warren Buffet. Peter Lynch has a good book also, but it's name escapes me at the moment.

If I had to offer 1 piece of advice it is to rejects stocks of companies whose current ratio is below 1.5. Such companies may face near-term bankruptcy if times get tough and they can't get loans.