posted
Hello all, I am new to this board, and to stock trading, and I'm trying to learn as much as I can so I can get on to the "real thing".I hope my questions will find answers from you more experienced, and I thank you in advance for that. How can I search a company profitability(balance sheets, etc) before deciding to invest in their stock? I like to do a lot of DD to understand how the stocks behave and why they do; I know that is hard to predict a stock, even for more experienced traders, but I don't know all the tools that an investor can use yet. I want to be able to see how a company in doing finacially (balance sheets) or anything else thats available to determine if the stock is worth buying.Is this possible?
Posts: 4 | Registered: Sep 2006
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quote:Originally posted by marcello06: Hello all, I am new to this board, and to stock trading, and I'm trying to learn as much as I can so I can get on to the "real thing".I hope my questions will find answers from you more experienced, and I thank you in advance for that. How can I search a company profitability(balance sheets, etc) before deciding to invest in their stock? I like to do a lot of DD to understand how the stocks behave and why they do; I know that is hard to predict a stock, even for more experienced traders, but I don't know all the tools that an investor can use yet. I want to be able to see how a company in doing finacially (balance sheets) or anything else thats available to determine if the stock is worth buying.Is this possible?
marcello06,
Do you mean penny stocks or big board stocks? Becasue most penny stocks aren't good for investing, only trading short term. If you mean penny stocks, which are most of the stocks discussed at allstocks, profitabilityand balance sheets usauall don't even matter. The reason I say that is because most penny stocks run on hype and recent PR's. Most Penny stocks only run for a few days, and go back to where they started. If you want to learn the patterns and how stocks react to news and hype on the message boards, here is a link for the most poupular, and best platform.
Candlesticks and Technical Analysis can be very enlightening.
If you are interested in these things you can go to www.stockcharts.com and click on the tab that says Chart School.
Nothing will tell you the future of a stock but you can identify trends and indicators that will help you decide if it is a good risk or a bad risk.
-------------------- No longer eligible for government service due to lack of tax issues. Posts: 5178 | From: Up North | Registered: Dec 2005
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Scroll down to the bottom, on the left side under Press Releases. You can click on every source. It has News for Penny Stocks and Big Board stocks. And after you click on one of the News Sources, like Business Wire, you can scroll down under the news and click on "Complete Archive" Then you can click on another source on the bottom left again.
posted
Thank you so much for the help! You guys are great! It really helps when someone points you in the right direction.I am really gratefull for the info you're giving me. Thanks again!
Posts: 4 | Registered: Sep 2006
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quote:Originally posted by marcello06: Thank you so much for the help! You guys are great! It really helps when someone points you in the right direction.I am really gratefull for the info you're giving me. Thanks again!
Read this book and after your done reading it take it from there (do a search of my name with keyword "books" for other book suggestions):
A Beginner's Guide to Short Term Trading by Toni Turner www.toniturner.com
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
The book that Machiavelli suggests is wonderful...here are a bunch of more links and info that may be helpful...it's kind of long...but some great stuff that I have gathered along the way...Learn all that you can and try to paper trade to...it really is helpful! GLTY!
Some simple and Basic questions:
What do these letters mean? DD=due diligence (Research) MM=Market Maker (definition http://www.sec.gov/answers/mktmaker.htm ) EOD=End Of Day EOW=End Of Week HOD=High of Day PPS=Price Per Share O/S=Outstanding Shares POS=Piece of "Poo Poo" IMHO=In My Humble(Honest) Opinion LMAO=laugh My A** off L2's=Level 2's
#1 RULE...PROTECT YOUR CAPITAL! it is the most needed tool in this game...without your capital(funds)...you can't do anything! #2 RULE...NEVER FALL FOR THE HYPE ON THE BOARDS Lot's of people get overly involved in a stock...and "believe"...don't "follow the hype" blindly...do your own DD #3 RULE...TAKE PROFITS #4 RULE...HAVE FUN!
How is one "flagged" a daytrader? To avoid being flagged a daytrader, you can not sell and trade the same stock more than 3x's in a 5 day period. Buy "XYZ" and sell it the same day=not a day trader. Buy "XYZ" on Monday and sell it on Tuesday=not a daytrader. Buy AND sell "XYZ" more than 3x in a 5 day period= Day trader. You can buy and sell different stocks...just not the same one.
What are "free" shares? Many People will sell a stock once it has "reached" an increase where they can sell to "get back" their original investment and then continue to let the rest of the shares "ride", these are "free shares" (ones that the gain of the pps has "covered") All of these, once sold, would be complete profit.
What are settled funds? You open your account with cash, those are "settled funds", You buy stock XYZ , you sell XYZ to purchase a different stock, It will take 3 business days for those funds to become "settled". Some brokers will let you purchase stocks with unsettled funds but you can not sell that newly purchased stock for the 3 days, The sell of a stock is what needs to "settle" not the purchase of a stock. Think of it as a check clearing your bank after you have deposited it.
Example: I have $200 in a cash account...I buy 200 shares of XYZ on Monday...I can sell those shares ANYTIME after my purchase...in 5 minutes or 5 months...it doesn't matter...I dont have to wait for anything...However, this is where the "settlement time" comes in, although allot of brokers will let you buy with the unsettled funds from the sale of XYZ...I CAN NOT SELL..the new stock that I purchased...(here it is) UNTIL the settlement date...usually 3 business days...
The settlement date applies to the SELL of a stock...NOT the purchase of the stock...
Must have book to read is "a beginners guide to day trading on line" by Toni Turner www.toniturner.com
posted
WOW...you guys are great!Thank you ALL for the info and help you gave me.Thank you 10of13 for the long post; really valuable information! I'm gonna pick the book that Machiavelli sugested and start reading it. I'm not sure I understand what "paper trading" really is, a little help with this term will be great.I know its some sort of "practice" trading, but how do you do it?
Again, Thank you ALL and I really appreciate your help!
Posts: 4 | Registered: Sep 2006
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posted
Paper trading is when you simply "write down" what you would have bought and the price that you would have bought it at...and then watch it and pick your sell price and write it down...still watch the stock for a few days...this way you can "pretend play"...WITHOUT loosing your Money...see how you do with your guesses and after you are winning at your guesses more often than you are loosing? You might be able to start with your "real" money... It was helpful for me to make notes as to why I bought at certain points and sold...try it...I still do it...and most of the time I am kicking myself for NOT actually buying...GL...I hope some of the info is helpful...
posted
ya, do the software thang if possible, and play along...
it's *much, much* different looking at a chart at the end of the day, or end of the week and thinking, "Well, duh...I woulda held THAT one!"
When you're actually riding along with the dips--or free falls--or rises--that's when you have to question yourself.
In other words, you have to "practice" in same fashion you will play...
If you're willing to buy and not look for a coupla days, then practice that way. If you know you'll be watching every tick, then practice *that* way...
posted
Got it! Makes perfect sense.It's a great way to get to practice. By the way, I went out today and picked the book Machiavelli sugested "A beginner's guide to short time trading" and I am reading it. What a great book! Thank you guys a lot again! As I run into things I need help with I will post questions here...hope you guys don't mind.
Posts: 4 | Registered: Sep 2006
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quote:Originally posted by marcello06: Got it! Makes perfect sense.It's a great way to get to practice. By the way, I went out today and picked the book Machiavelli sugested "A beginner's guide to short time trading" and I am reading it. What a great book! Thank you guys a lot again! As I run into things I need help with I will post questions here...hope you guys don't mind.
Your welcome... and try to trade only big boards over pennies... or dont put all your bankroll just in pennies... maybe 1/3 to 1/4 in pennies and rest in Big Board stocks for trading...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
well, its good to have you in the comunity, and lots of info has been given here. there is not too much that i can add , all i can say is that after you paper trade ,get in the game whith very little money that you can afford to loose. use tight stops , and see how you handle the heat whith 200 shares.you will find that when things go against you , you might get shaken and emotional , remember, there is not room for emotions in trading so you have to master this one.
at the beggining you loose money , then you will learn not to loose money and then you will learn to make money.
Posts: 14 | From: sweden | Registered: Sep 2006
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