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Blogging to add value. Sharing and discussing helpful websites, money, stocks, etc.

Tips on getting started in the market

  1. Learn about the market before you invest your money or start small 
  2. Stay away from Penny stocks
  3. Find high growth stock that could move up quickly
  4. Only buy stocks at a discount
  5. Open an account with only the highest quality brokers.  I am happy with Scottrade Securities.
  6. Open a margin and cash account if possible.  The interest you pay on margin is hard to overcome.  By having a cash account you can use that mostly, and the margin account when you want more leverage or to short sell a stock.  Stocks trend higher over time becuase of earnings, accumulated capital, and new technology so not many shorting opportunities are available.  Only look to short the very worst of stocks at over bought prices.
  7. Set stop losses for positions.  Don’t add to losing positions. 
  8. Read as many articles, and books as possible. I read a few books from the library when I didn’t have money to buy a book.  Jim Cramer has written several good books. Find a book on technical analysis. Read a book or take a course in economic theory. 
  9.  The  Kikr Report http://www.thekirkreport.com/ is  a great website to keep in touch with the market, and learn more about the stock market.   I would recomend becoming a member.
  10. Turn off CNBC they are not your friends. Too easy for anyone on the shows to manipulate you for financial gain.  That is the advice as have recieved from other professional traders and my experience.
  11. If you don’t have much money find a job or career to accumulate money.  Trying to work ful l time and invest actively is too diffucult.  Adopt passive trading rules to keep you interested; but, not uncomfortable. Things can change in a moment and you have to develop your feel for trading over time. Open an account and start with the idea of earning a small amount or gaining experience. 
  12. Patience and good judgement are the quickest way to achieve good results. If you are short on either try to work on these skill sets. 

January 25, 2008 Posted by | Uncategorized | , , , , , , , , , , , , , | 1 Comment

Market going to test the lows again, bearish GOOG

With some people just not understanding why things could be better with compromise I believe the stock market will crash.  The key to my hope and change to optimisism was the market appeared to be getting it that we are all in it together.   Bill Gates being progressive trying to help the impoverished.  The house introduced a bill to restate the governments responsibility to everyone.   It hasn’t been passed yet.  The can’t move forward if people think the goal is to try and get over on one another. 

The rate cut could make a difference if people have faith in the value of a lower interest rate to banks.  Not sure it will work yet.  Customers may not be as quick as they were last time to go for lower rates.  So the one week effect of rate cuts boosting stock prices as seen in the past may or may not show up.

The smart ass comments back in the mix from CNBC reporters about pure capitalism is the answer and always has been is very concerning.  The world again realizes these guys’ don’t get it and might just never get it.  Until they do get it.   I am staying bearish.  An additional rate cut should make things interesting; but, when used as a tool to get over on people can’t possible be the answer.

  I like a shorts position in GOOG especially http://biz.yahoo.com/cnbc/080125/22841725.html?.v=1   I think Google has very specific to google problems pitching ads for mostly crap, and competition is coming quick.  I have just added the kitchen sink to this trade.  Also shorted BJS an oil servicer with 70% of it operations in the U.S because the United states is running out of oil, and oil should be peaking with Solar stocks taking the lead.  Dubai’s 15 billion dollar emission neutral city could be a sign oil has peaked.  OIH, GRMN, QQQQ, XLF, MSFT, MRK, XL also look like tempting shorts. 

Entertainment purposes only

January 25, 2008 Posted by | Uncategorized | , , , , , , , , , , , , , , | Leave a comment