28 Sep
when do you know when to buy stocks ?
when the green arrows are up ? and what happens after ? if i do
after i buy the stock what happens how do i know if my money is growing ?
28 Sep
Posted by admin in Green Business.
when the green arrows are up ? and what happens after ? if i do
after i buy the stock what happens how do i know if my money is growing ?
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Posted by muncie birder on 28.09.09 at 2:47 am
It is not so much when to buy as what to buy. There certainly are time though that the when does come into play like last March. That was definitely a when to buy. Certain stocks historically have proved to be good investments such as JNJ, MCD, WMT, KO. Currently those four are selling pretty near as cheaply as they ever have been during recent memory–the last 10 years anyway. By cheaply I mean on a price to earning basis which is a means used to determine whether a stock is a decent buy or not.
When you buy a stock sometimes the price of the stock will drop and sometimes by a pretty shocking amount. If you have faith that the company is doing the right things it might then be time to buy some more. Your money is growing if you are receiving dividends and if the price of your investments are going up.
Posted by Stephen T on 28.09.09 at 2:47 am
I suggest you take some time and read a beginners guide to stocks and mutual funds. I buy stocks after they’ve had a rough week (red arrows) because they are poised to pop soon.
Posted by smahadevan39 on 28.09.09 at 2:47 am
It depends on the stock. Whether the stock is available throughout the year?
What will be the transit period to you?
Your ability to preserve / store that goods.
Your funds flow to buy the stock.
Compare your requirement and the transit period.
Volatility of the price movement if any for the stock. etc etc.
Posted by Michael on 28.09.09 at 2:47 am
After a friend of a friend tells you to buy in. Just kidding.
I track a stock for a long time before I buy. You have to consider the hotness or coolness of that company’s sector, the company’s competition (which could turn you onto yet another company), the price to earnings ratio (PE), dividend percentage, and especially look at whether people within the company are buying or selling.
Only then do I buy in.
Details: as for how do you know what your money is doing, make sure you buy through a company that has an online presence and monitor that account daily. You will want to keep a close eye on your account. Plus, the more you read about companies, the more educated you will become.
One last piece of advice: never forget that you are actually buying into a company. The best companies for you are the ones you know and are willing to keep researching. Funny how it works, but for me, the challenge isn’t in when to buy, but exactly when to sell.
Posted by !!! on 28.09.09 at 2:47 am
When sales are up 20% or more quarter after quarter. Net profit is up 20% or more year after year. When the stock has reached a new 52 week high.
Posted by Max M on 28.09.09 at 2:47 am
First, take 6 months in learning about stocks and trying it out with fake money in a stimulation web site like Yahoo! Finance.
http://www.finance.yahoo.com
The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.
Besides you can’t do much with $100 in the market. Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.
Good luck.