Re: Please save my friend. The horror........the ....horror..

In article <1156303011.491023.223550@xxxxxxxxxxxxxxxxxxxxxxxxxxx>,
drsmith666@xxxxxxx says...

steveh99 wrote:



What is a good way for a first time investor to start out?

Steve,
There are a lot of different strategies for investing in the stock
market. It is my opinion that if someone is going to be ULTRA WEALTHY
they need to learn at least one or two SPECIFIC strategies for stock
market investing and become an EXPERT at them.
To start out, first of all you have to open up what's called a
"brokerage account". You do this by signing up with an online broker
such as E-TRADE or FIDELITY. This is an online account similer to a
PAYPAL account in which you can buy and sell stocks, and it's connected
to your bank account so you can transfer balances back into your bank,
or funds from your bank into your brokerage account. Opening a
brokerage account is the very first, most basic step in stock market
investing. With this brokerage account you will be able to enter orders
to buy a stock at YOUR price. This is called a limit order. You can
also enter a limit order to SELL that stock when the price hits where
you want it. You don't have to be at the computer, you don't even have
to be conscious. Your broker will conduct all transactions. Sounds
easy? Well, it is, but it's also risky, so you have to follow specific
rules and never break them.
Next, I'd read a good book outlining some money making strategies.
The book that taught me how to invest was called THE WALL STREET MONEY
MACHINE by Wade Cook. I think I only read the first 5 chapters and I
was ready to go, the rest of the book dealt with OPTIONS which I didn't
feal comfortable with.
My first couple transactions I made a very impressive amount of
money, so I jumped in feet first and made some very bold and brazen
moves, and lost quite a bit of money. Part of it was bad decisions.
Part of it was bad luck. I still am sitting on a lot of money tied up
in investments that have gone down, and have been sitting on these for
years waiting for them to recover. Thank god these particular
investments pay dividends at least!!!!!! Sound scary? Yeah.. it is.
What I do now is I have a STRICT LIMIT on how much I will invest
in any given stock. I won't tell you how much that is for me, it will
be different for everyone. This way, you can limit your losses from any
one particular stock. Basically, the two strategeies I use are these:
#1: LONG TERM: I look for good, strong companies who's stock is
trading below book value. This is how Warren Buffet made his billions.
I also make sure the stock I buy is trading at a five year low, or
close to it. I'll put in 30 orders, and only a very small percentage of
those will ever trigger. Discipline. There are "stock screeners" that
will pull up these stocks trading at bargain prices. Things are so much
easier than they were years ago. It's pretty exciting.
#2: SHORT TERM: I look for low priced stocks, and look at the

Thanks for the good advice
.

Relevant Pages

  • Re: When Bush took office...
    ... And to pay for it the fed "created" too much money diluting the ... Most people should think of paper currency just like stock. ... the so called "carry trade". ... investing it at high interest rates somewhere else. ...
    (rec.boats)
  • Re: When Bush took office...
    ... And to pay for it the fed "created" too much money diluting the ... Most people should think of paper currency just like stock. ... the so called "carry trade". ... investing it at high interest rates somewhere else. ...
    (rec.boats)
  • Re: How much money do I need to get started?
    ... Invest your time right now instead of your money. ... (considered by many the grand-daddy of investing). ... money allot people typically start out by taking "greater" risk on stock ie. ... If you spend some time doing your homework and reading and analyzing ...
    (misc.invest.stocks)
  • Re: day trading question
    ... > Okay I am just getting into investing in stocks and I have a question. ... > make any money. ... I think Sirius is a good long-term investment and even if ... If you place a large amount on one low price volatile stock and the stocks drops. ...
    (misc.invest.stocks)
  • Re: Time telephone
    ... investing in stocks different than playing the lottery. ... of a company to earn profits for example. ... Before you know it, that stock stops trading. ...
    (sci.space.policy)