What are some cheap, but good stocks to invest into?
February 12th, 2010 by admin
Currently, I do not have a lot of money to invest into stocks but it is definitely something I would like to do. I am seeing if any other investors might have some ideas for me. Thanks!!
Tags: Cheap, Cheap Stocks, Good, into, invest, Invest Stocks, investors, Lot, Money To Invest, Some, stocksPosted in
Some stocks are good, and some stocks are cheap, but it is EXCEEDINGLY rare for a stock to be both! That’s why the market works!
Just buy fewer shares of a more expensive quality stock!
http://www.sharebuilder.com will let you do this, as will http://www.buyandhold.com
Get rich slowly!
Good luck…
A couple: For growth-NYSE Euronext–(NYX) , Celgene–(CELG) value-ALTRIA–(MO); small caps are also a good area, but stick to the mutual funds. Most take a lot of research to figure out.
Well you always can start small and build an equity. The advice I give is what I followed is start small and keep building a pool of money on the side. Make sure you are investing wisely in your 401K plan if you have one.
For additional investments make sure you follow the investors.com 15 rules. Try and stay away from stocks that are below $10. I have learnt a lot reading investors business daily and following the rules. I definately would recommend making friends who invest and talk about companies stocks etc.
I see you are interested in investing in the stock markets and think that you can start successfully by asking questions like this online. Just think, if winning in the stock market is as simple as posting questions like this, why are so many people still poor?
There are quite a number of things you need to learn before you can even start thinking of the stock markets …
1. You need to understand how the stock market works and what it is exactly about.
2. You need to know what are the different styles of trading in stocks and shares.
3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.
For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm
After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/ )
Remember, the slogan “Just Do It”, Just won’t do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?
After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :
1. Why are you of the opinion that this stock will rise?
2. Is your opinion valid in the first place?
3. When are you expecting it to rise? Can you hold on for that period of time or longer?
4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?
5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?
6. Where is your expected profit taking point? What is your profit taking point based on?
7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?
8. How much of your money should you dedicate to this one trade?
9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?
10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?
After you are able to answer all these questions confidently, THEN you are ready to… PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.
Then.. you are ready to start… but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.
So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.
Take heed and good luck.
All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.
If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/
Hope these information helps.
http://www.optiontradingpedia.com/
http://www.mastersoequity.com/
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