Basics of Investing

Question: Seeking online investment advise (I would really like some serious advise)?

I am a 24yr old college student. I have about $500-$1200 of earned money that I’d like to invest in online brokerage (e.g. Sharebuilder, Scottrade, etrade), or something along those lines. Does anyone have any good ideas about about which online site to use and any good solid stock ideas, like Apple, Google, Gold, DRIPS, etc? Something solid that can help me earn money gradually (or faster, whatever : ). If you are involved with something online like this, what do you do personally with yours? Do you trade and sell often? Do you just let it sit and gain?

Answer: you are definitely on the right track thinking ahead for your future investment.
I hope I can help you out with the best informations that you can use for the long run.

When I started out young like you about 25. One old gentlement gave me the advices that I am fore ever grateful. I tell you this because I did my own investment research and still coming out ahead for this decade. I was not show off but pump you up. Now at 36, my 401k is about 100,000.00. My Roth IRA is 21,500.00. And My cash on hand is 30000.00. Always do your own research and make the decision for yourself. Couple pointers I could get you start: Turn off teh bloomberg, CNBC money news, by the time you get the news, it’s too late.

If you want to invest properly, learn how the market acts in 4 step processess:
1/ Fundamental Analysis: check out the FED, OPEC, Inflation, Economic Calendar, CPI, PPI, leading economic indicator, money flow, ISM manufacture index, Employment report.That’s on the macro basis. On the micro like investing in company , check out Ratio analaysis, balance sheet, cash flow sheet, income, management team, industry, sector. TELL YOU WHAT TO BUY/SELL.

2/ Technical analysis: Learn how to read charts, how to spot a pattern, and technical indicators, japanese candlestick. TELL YOU WHEN TO BUY/SELL.

3/Sentiment Analysis/ Contrarian Ananlysis( avoid the CROWD mentality): check out the Bull/Bear ratio, VIX index( Fear Index), The Put/Call ratio. These ratio will keep you practice buy Low, sell High.

4/ Seasonal cycle: Everything in this life involves cycle. Stock market is no exception. Learn How to identify what cycle . How US presidential election affects the stock cycle.

Couple really good books you should read:
Techinical Analysis for Financial Market by John Murphy
Stock Trader’s Almanac by Jeff Hirsch
All about Market Timing

Couple good website you should look into:

http://www.stockcharts.com

http://www.incrediblecharts.com

http://www.pring.com

http://www.stockTA.com

http://www.market-harmonics.com/free-charts/sentiment/investors_intelligence.htm

http://www.sentimentrader.com/

http://robertjmiller.us/sentiment.htm

http://gbr.pepperdine.edu/043/stocks.html

I hope these information will serve you well to the future. I did it even in this tough time. Start contribute to your retirment ASAP when you got a job. Stay out of Debt, Do not buy house you can not afford, Do not keep up with the Joneses, Who care what people think what you drive or wear, by the end of the day, you have the cash in the bank and less tressful life.

I hope you start apply it to your daily life.

Investing and Trading: Thoughts – Speculation / DRIPs