Most people who will even tell you a “good stock” to buy here are people who are waiting for you to to buy in so that they can sell it at a slightly better price!

There are quite a number of things you need to learn before you can even start thinking of the stock markets …

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example)………

Remember, the slogan “Just Do It”, Just won’t do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to… PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start… but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.

So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.

All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to

Hope these information helps.

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Here is my stock tip. You could get out of the stock market and start making incredible returns in the currency market. This strategy is making investors 10% plus a month. Over the last year and a half its averaged about 15% a month. Don’t believe me though. Try it out with play money and you will see. I would go straight to the video presentation. Its more informational then the site.

Make it a great day!

Buy & Read Jim Cramer’s “Real Money”. It’s basically everything you wanted to know about stocks and the stock market. You can also follow his charitable portfolio for $400 yearly. It is a great education. The book and the portfolio shadowing are the real thing I kid you not.

Will – Investor

A form of energy exchange is always required, its the rule of game.

When you are looking for putting money then go for professional service not some blog or trader groups where people are still learning and not yet reached the level of maturity and understand required to trade financial markets.

Have you ever seen big building or dam being constructed by amateur architecture enthusiast.

Start building habit for paying for services you get as this will bring corporate success culture in your trading life.

Trading is profession and to trade against professionals you need to be professional or take services of professionals which is never free. If still you be interested in free service it might be better off just toss the coin and take the trade you might be making handsome gains doing that if you have good money management and trade management techniques.

Any person trading in the market, MUST have patience AND the ability to believe the position he or she buys or is in will have a return.

Any person trading in the market MUST ALSO KNOW AND HAVE a limit as to how much of a loss they will accept – without allowing the account to go broke or almost to $0.

You may think you always pick the wrong sector, but this is only part of the overall picture for a single stock. Here’s a few trading suggestions:
When you are researching a stock, you must take into consideration what is that stock’s current trend?
and what is the market’s current trend?

Is there any news about that stock or that company? When are earnings announced? These are only a few of the many questions traders have to research and find out about a stock or a company before a trade is placed.

A very helpful, yet free site is smartmoney.com; this site has sector maps.

Here are a few trading expressions:

“There are no gifts on Wall Street.”

“Plan the trade. Trade the plan.”

“V.I.C.P.I.E.: Volume Is the Cause; Price Is the Effect.”

“Bulls make money. Bears make money. Pigs get fat. Hogs [greedy traders] get slaughtered.”

“I am trading people. I am not trading stocks, bonds, options, currency, commodities or any other security or equity.”

There are many, many others.

I wish you well!

VTY,
Ron B.