Do you have money on stocks?
When you are trying to pick your stocks how do you go about doing that? What should we all be looking for?
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I did for a little bit, I need to get back in. Last semester took up a lot of my time so I wasn't able to research Like I wanted to. It all really depends on how you want to invest, how risky are you, how much money you have, etc. I don't have a lot of money, so I need high volatility stocks which generally means higher risk stocks. ie I invest in penny stocks. I look primarily at the price chart and trends on it, along with a few fundamentals and valuation metrics. There is a lot of good info on the net about investing, and Barnes and Nobles has a couple good books on it. The basics are pretty easy: Ps = Price sold Pb = price bought # = number of shares A = amount spent C = commission per a trade R=Pre-tax profit # = (A-2C)\ Pb R= Ps(#) - Pb(#) - 2C = (Ps/Pb)*( A-2c) - A Ps/Pb >= A/(A-2C) for R to be >= 0 If you use the above info to look for stocks with decent price volatility and buy near what appears as price floors you likely make out alright on enough some stocks to more than cover your loses on others. Especially if they all have positive and increasing P/E ratios, High P/E ratios relative to their industry and their company size; preferably with increasing earnings as well. I haven't placed an order in 3 months, but its summer now so I should soon. So far so good since I started like a year ago; a 66% increase in what I put in my account. The biggest advice I can be give is to be patient and confident. 1
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My commission on zecco is 4.95 per a trade, so full round its about 10 dollars to buy and sell. Using the equations above you can see that the more you spend the less of a percent increase you would have to see to make enough to cover commission. I started out investing just 100$s, Now I do about 200 to 400 when I invest. I put a total of 600 into my account, now My account value is at 1000$, I have 800 in cash though :( I need to do something with it soon. |