Just opened my account with Scottrade, it's about time!

[NeedaCobra]

Woooooooooooooooooot :-D

I have been studying the stock market for the past several months. Been through several books, and I'm feeling "comfortable" (in a good sense, not in the lazy sense!) opening an account now and to start trading.

Just gotta take the money to the local office next week and I'll be starting, woot! :-D

Can somebody give me a BOOYAH!

 

[NeedaCobra]

Edit:
. . .found out I can transfer money from my PayPal account to my bank account. :-D

 

[b dub]

what books? anything by bill mathews?

 

[NeedaCobra]

Three by Peter Lynch (One up On Wallstreet, Beat the Street, and Learn to Earn)

One by Jim Cramer (Real Money)

A few by Robert Kiyosaki (the "Rich Dad / Poor Dad" guy)

Benjamin Graham (The Intelligent Investor)

etc.

 

[Nasty Notch]

Be sure to put all your money into my company please :-D

http://www.nyse.com/about/listed/lcddata.html?ticker=SII
http://www.nyse.com/about/listed/lcddata.html?ticker=SLB

 

[NeedaCobra]

Sure, "OK"

 

[Riddla]

 

[NeedaCobra]

[~serious2jw.png

:dw: oke:

 

[red03cobra]

Diversify! Don't confuse a bull market with intelligence. Checkout Morningstar too!

 

[trance_in_miami]

tell us what are some pricnciples & wise choices & laws.. that we should know about the Market & trading ?

 

[NeedaCobra]

tell us what are some pricnciples & wise choices & laws.. that we should know about the Market & trading ?

Here are a few off-the-cuff rules that I remember, currently trying to fix a water spigot that keeps leaking :fm:

-Never buy stock of a company that you don't understand

-The sector a certain stock/company is in will determine about 50% whether it moves up or down (Cramer)

-If all else is the same, whichever annual report has fewer color pages and more black and white (cheap) pages in their annual report is the better company (lol, just a weird but interesting viewpoint from Peter Lynch :-D )

-Sometimes when a stock is going down, if the fundamentals are good/great, it may just mean it's time to buy more shares at a cheaper price.

-Don't get into the habit of cutting the flowers and watering the weeds (Lynch). That is, don't just sell a stock because it went up and you made a profit, and then hold onto the failing stocks and ride them down all the way to zero.

-Options are dangerous, especially shorting stocks. Shorting stocks is dangerous because stocks have a "floor" ($0) but they don't have a ceiling, so they can keep going up and up and up.

-When the market is down as a whole, a lot of times it is just a great opportunity to load up on a lot of great companies at a cheap price.

-When businesses make a profit, there are several things they can do:

• Companies can inrease dividends (if they pay them), which can be helpful in certain market environments
• companies can also buy back shares, which inrease the value of each share due to smaller supply (but this is not always good, especially with a new company)
• Diversify: branch out into other markets, buy other companies, etc. However, sometimes (as in the words of Lynch), companies don't diversify, they "diworseify" by going into things the company has no idea how to run, or by buying other companies at inflated/bloated prices (like Ebay bought Skype and Paypal, both at too high of a price)

While the fed. is tightening down and inreasing interest rates, and the economy is slowing, it's time to look at secular growth stocks: secular growth stocks are that have to do with things that people buy even when the economy is down. When the economy is down, we still need cereal, toilet paper, tooth paste, etc.

While interest rates are going down and the economy is scooting a long, then you can look to other industries, such as auto, manufacturing, et al.

Well, I'll stop for now. Feel free to disagree, as I'm still learning

 

[thubigdawg]

OMG .. :lol: :lol: I lol on that one!

 

[NeedaCobra]

OMG .. :lol: :lol: I lol on that one!

Could you please remove the picture from your quote, duplicates aren't necessary and just clutter up a thread. :nono: ;-)

 

[DanTheCobraMan]

Take it from someone who has been doing this a long time and has lost a lot of money. It's pure gambling. 50/50, just flip a coin. It don't matter how well a company is doing financially or how well you understand the company, good news can come out and the stock decides to take a dump. Bad news can come out and the stock takes off like a rocket. Not trying to rain on your parade, but just giving you the other side of it. Just be careful. Best advice is to stay away from options and to deversify into different sectors, because deversifying into different companys but same sectors is dangerous because they usually rides the same waves. Just my $.02.

 

[DanTheCobraMan]

-Sometimes when a stock is going down, if the fundamentals are good/great, it may just mean it's time to buy more shares at a cheaper price.

The problem is trying to figure out when this applies. The company I work for has great fundamentals, yet the stock is getting hammered.

 

[Wishing4Cobra]

A few by Robert Kiyosaki (the "Rich Dad / Poor Dad" guy)

Benjamin Graham (The Intelligent Investor)

etc.

im currently reading Rich Dad/Poor dad right now. Sitting on my shelf is The intelligent investor revisted edition by Benj. Graham. This book is like 600 pages.

 

[NeedaCobra]

im currently reading Rich Dad/Poor dad right now. Sitting on my shelf is The intelligent investor revisted edition by Benj. Graham. This book is like 600 pages.

Yes, I have the same 600 page edition

As for the stock market being 100% gambling.

Sure, it's gambling if you expect a huge return just doing short term.

However, some stocks cannot but help go up. The only way they can go down is if the company goes bankrupt, etc. Longer term isn't gambling, speculating usually is.

For an example of a compnay having a great quarter, yet prices went down, compare J C Penney Corporation, Inc. (JCP) to Abercrombie & Fitch Co.(ANF).

The performance of JCP was already figured in to the stock, so when they had higher than expected earnings, the stock price dropped because it was expected. . . .

 

[ravenknight]

im currently reading Rich Dad/Poor dad right now. Sitting on my shelf is The intelligent investor revisted edition by Benj. Graham. This book is like 600 pages.

Rich Dad/Poor Dad was a good eye opener, really loved that book. I will have to check out Graham. I am currently reading Cramer's Real Money, liking it so far. Dont ever forget the main investment we can make, real estate. Buy a house, even if its run down, one of the safest investments you can make.

 

[NeedaCobra]

Yeah, I'm wanting to buy a house once I have more money to put down. Hoping these investments enable me to buy a house sooner. Surely don't mind a "fixer-upper"

 

[nates03L]

I just started reading about the stock market a couple weeks ago. I would love to get into it, but i still need to learn so much.