buy low, sell high - the basics


How long is said beginner willing to hold a stock and not freak out by the ups and downs? My advice is to use the money to pay down debt instead if you are not willing to hold a stock at least two years right now and you can't afford the risk of losing money.

All that said, look for small and mid cap stocks. Stay away from big brand name stocks like Apple, Microsoft, etc. if you are planning to hold awhile.
 
i got no debt :)

stock indexes, are those still a good idea? i read in the news they'be been taking a dive recently?
The best investment we ever made a dividend reinvestment plan (drp) with Sempra Energy (formerly San Diego Gas). Over the years it grew to the largest holding we have. We set up our oldest son with an Exxon (drp) 5 years ago and it's already grown A LOT.
 
Watch stocks with a bullish trend, high volume and trades made daily.

I like to use the MACD and RSI/Stochastic indicators. Buy when the RSI/Stochastic has bottomed out, usually when the price has hit support or is near to it. Then sell when it reaches the top of the indicator and or reached the 1st resistance level. Easy peasy money. Or you can do the same for a longer period and make more profit, but home on the stock is required for that.
 
Anyone else got some good tips for beginners?..

Do you homework.

Look for good bargains you can buy a lot of shares of. What that means is up to how much you are willing to spend.

If you can only afford a few shares of a stock it almost does not matter how much it goes up.

Back in early Sept we bought a pharmacy stock for 16.33, sold it the beginning of Jan for $43.85 168% return on our money. But if you had only 10 stocks that would not really have mattered much. But if you have 500 then you are doing well.
 
There are some consistent dividend producing stocks under $10 and $15 with low PE's that are a good place to start. Their prices are not going to change a lot on balance so not really something if you are looking for quick cash, but a good place to dip your toe into and keep there awhile. I also like that end of the scale because that is where you can find some decent foreign stocks, particularly in energy, telcom and healthcare
 

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