Cool thread. I'm currently trying to do this as well... I'm pretty new to it, but you can pick up some things very quick if you keep up with the comments/and the market's reaction..
Some tips that I stick to:
1. Invest in companies that have a product or service that you admire or appreciate. You'll feel better about your picks.
2. Most companies have web sites. Visit their web site before investing, look at the layout. First impressions make a big impression.
3. Look at a companies charts. What has their stock price history been? Is it on an upswing or downswing? Read related news articles to see what is going on within the company.
4. Don't buy a stock just because 20 other people said to. Unless they are a reliable source. Most of the time you'll run into hyped-up stocks. I tend not to jump into a stock after it rose 100%. Even though there's a chance it'll grow more, the downside is pretty vicious.
5. Baby steps work. Instead of investing 75% of your capitol in one stock, split it up between 3. Diversify. Small gains add up after a while!
6. Don't panic and sell at a loss. In time the stock should turn around. It's only a paper loss.
7. Have fun! On down days, take a couple of hours from looking at the market. It'll just make you more upset if you do. (Like this morning when almost all of my portfolio was in the red)..
8. Play stocks from the sidelines. Some people on SI have very good picks. Follow some people's picks, see how they do. Write down the price when you see them post about it, then follow up on it that day, the next day, the next week, etc. People try to keep a good track record. There's nothing wrong with tracking other people's picks on paper. I actually do this in an Excel Spreadsheet.
9. Be weary of people saying stock SOANDSO will jump 100% on the news that will be released "later" today or this week. Those are the most vicious I have seen.
In any case, I started out with $5,000 of "play money".. $2500 of that went into "long term" investments (PFE, MSFT, AOL, WCOM), the other $2500 went into "risk plays". Over my 2 months of time I turned it into $6,000. It's a small 20% gain, but I knew just about NOTHING about the market before I started. I'm still learning and making my "baby step" investments.. My favorites are stocks in the $.50 to $2.00 category, purchasing about $300-$500 worth and hoping for a 50-100% gain.. Practice makes perfect..
Good luck!
-Richie |
