TIPS FOR NEW/BEGINNER LEVEL TRADERS
For those interested in investing in the stock market here are a few suggestions to help you out.To start trading simply find a brokerage ( Scottrade, Etrade TD Ameritrade , Charles Schwab). Most brokerages require a minimum of 500,1000$. From there you can work your way up. Before jumping into the water of the market, always do your own research. There are also many apps to simulate stock trading for you to practice with if you do not feel comfortable learning on the fly with real money( Stock market Billionaire, Investopedia) . Prior to jumping in you should take time to analyze the trends occurring in the market. Assess your own risk tolerance. If you have a high risk tolerance you can look into highly speculative stocks or stocks that can be considered start ups. These stocks usually offer prospective investors high risk high reward opportunity. That way you know what type of investor you are. You can always start off with investing in a dividend stock which is a stable stock that offers very low risk. Examples are Microsoft MasterCard Berkshire GE Apple Nike . These stocks will allow you to watch your original investment slowly grow which will leave you smiling. You can do your research and try to be on the prowl for companies that have a high possibility of getting bought out. Another tip is that you cant let your emotions get the best of you. It is great to be ambitious to a certain degree. Trust your instincts and if things go well don’t let your greed take over. Never make any emotional decisions ( decisions out of anger or excitement). Keep I mind no one in this world knows in what direction a stock is headed in not even warren Buffett.
Volume is an indicator of how active a stock is being traded. If the volume of a stock is above average. It could signify a big spike or a drastic plummet. If a stock’s volume is below average it signifies a minimal gain / loss . In addition minimal volume could signify that the stock will break even for that day since there is Minimal activity within that specific stock.
Tips for Option Traders
Tip for option trading earnings
- Always keep your strike price of your puts and calls within 10% of the stock price. If it is too far , you will be out if the money therefore making it a loss. Ex Stock X at 200. AT Most I would put my strike price within the range of 180 for puts and 200 for calls
-To minimize risk Buy an option that would expire 2 weeks or so after earnings so in the event the stock does not go your way, you can give it time to rebound. These options are safer but tend to be more expensive.
Ex my Mck feb 22 calls earnings did my go away but now it’s rebounding.
Q. What is the difference Between the Bid and the Ask @ kalbrecht905
A. Bid is the price you sell Ask is the price you buy.
Q. What apps or website do you use for reference @mattmacc1985
A. I use hereit1st.com of course ( little joke). Seeking Alpha, Yahoo Finance, Motley Fool, Bloomberg, Ibillionaire, yahoo finance, Also try to follow people that have a tremendous influence on the stock market for example Warren Buffet, Carl Icahn, Jim Cramer.
Q. Are there any books you suggest for trying to learn. @itslos007
A. I personally never read books about the stock market, I used Investopedia. Try to take a business course in high school/college so you can understand how the market works. How politics effects everything from oil to currencies. Best way to learn about the stock market in my opinion is to follow the news, Simulate, using the app that i recommend to my followers is ( Stock Market Millionaire)
Q.How to Evaluate stocks and read key statistics? Kind of a generic question @stockmarketnews
A. There 2 different ways to analyze stocks. Fundamentally or Technically. If you are a Fundamental trader you are more likely to be a Buy and Hold type of trader as you analyze corporations financial statements which includes earnings, Guidance, Long term outlook. Fundamental analysts also look at company’s advantages and disadvantages, the company’s competition in the market. A technical trader mostly focuses on the short term outlook of a company. By analyzing sophistocated charts using methods such as support/ resistance, information from the past and factors such as volume. Technical traders also can be used to forecast the direction of the stock price, for example a technical trader could make money if a stock goes down by trading options.
Q. This is more of a personal question is your income mostly dependent on stocks? @lparr_
A. We currently have 4 traders/authors on our staff. I am the only that has a part time job. I work at the Central Queens Y in Forest Hills, New York. In addition our staff consists of full time students so we usually do not have time to work.
Q.Strategies for getting in and out of pennystocks? Tips on how to sell penny stocks when no one is buying. Where do you look for OTC, stock and option news? Do you use level 2 trading, what is it?
A. As the exclusive penny trader on our staff I am sure that all my followers, subscribers know that I never hold pennystocks over night( it is just a personal preference) . IF i make a decent profit i usually sell the stock by closing. I will not risking losing my profits and at worse my initial investment over night. After all these stocks are in the OTC markets for a reason. If there is no volume for a particular penny stocks you might not be able to sell. For Example i bought UMDI a while back at .048 it jumped to .095 and i could not sell it because of the lack of volatility. Now that you bring up selling when no is buying I think a great way to make money is buying when no one is even looking. To keep up with the OTC i usually check out boards on Investorshub.com or i go to OTCmarkets.com because major news anchors hardly announce news on OTC stocks. I do not use level 2 trading so i cannot answer that question.
Q. What trading platform would you recommend Etrade, Scottrade , TD Ameritrade Charles Schwab
A. I personally have scottrade but I think it’s really dull. Scottrade is 7$ per trade. TD Ameritrade is 10$ a trade but their trading platform TOS Think Or Swim is phenomenal. So yea it’s between TD Ameritrade/ Scottrade
Q. Are you a technical analyst or a fundamental trader.
A. I believe we have that in our bio. I am personally a fundamental trader when it comes to finding a long term stock. I recently started to look into technical trading due to options. Juan is also a fundamental trader, Cortes our Forex and Option trader is a technical analyst. Nick our exclusive forex trader uses both fundamental, technical techniques when trading currencies
A. Thank you for your question! I understand you want to learn about options and how to set limit orders. I receive this question in my email at least 2 times a week. As much as I’d like to help and teach you everything about options, it’s just too much information for me to feed you. I tell everyone who asks me this to visit these two website, www.Optionmonster.com and www.investopedia.com <– You can learn about limit orders from them as well. These websites give very good information about options. You can’t be lazy if you want to really learn about something! So, grab a coffee or a beer and read as much as you can. THEN, please e-mail me at Rjrc12@gmail.comand ask me anything that you are confused on. I will definitely give you as many examples until you fully understand options. This saves both of us time! Good luck! – Cortes Capital www.StockMarketingExperts.com – Partnered since 2013
You Ask the Questions We Answer! 3-9 Edition
Q. How do you determine weather a stock is going to go up? How do you find that stock in the first place?
A.It’s always good to look the way a stock is trending dating from 52 week trend all the way up to its 5 day trend. If a stock has been on a tear the past month it will more than likely experience at a peel back in the near future (keep in mind this is normal as market fluctuates). Furthermore, you can look for upcoming big events that a stock may be headed into such as earnings which depending on the hype surrounding the stock can drive its share price higher or lower. Basically in order to increase your chances of finding a stock that is going to go up you should look at the way it is trending and momentum it may be gaining or losing caused by upcoming expectations or positive/negative results released by a company. As for finding these stocks it best to just keep up with your current events, if you watch shows such as Mad Money and go on sites like TheStreet.com they will present you to companies you have never heard of that offer investors great opportunities. Basically just research, research, and do more research when looking for new companies to invest in.
Q. What do you think of DDD?
A.I think DDD offers investors a good entry point at the price it’s at. Perhaps, you could be more patient and wait it out a little because I don’t think it has bottomed out just yet. Keep an eye our for what analysts covering DDD rank it. Will they upgrade it or downgrade it? No one knows for sure but judging from the results of its previous earnings and the earnings of companies such as VJET, SSYS, XONE, and many more in the 3d printing industry it looks like the hype surrounding these companies which drove their stock prices so high to begin with has died down. DDD needs to start delivering on paper in order to instill confidence back into investors that it can become a widely used product in the near future. I do believe however that DDD is a good company to invest in and wouldn’t be shocked to see it go back up to 80, and more than likely finish the year back around at $95 give or take.
Q.BIOD or PLUG which would you invest in right now?
A.Plug hands down. This company could end up being the biggest growth stock of 2014 if it continues on the pace it is on. It could have a Tesla like year or even better if everything falls into place. They are locking up contracts with big companies such as Walmart, Fedex, etc. Quite frankly this company can’t afford to screw up this time around. Plug has a history of over promising and not delivering. Another let down would be catastrophic for this company. Finally it looks like management has figured out how to right the ship and their ability to cut costs, lockup contracts, and what we believe will be an earnings beat this upcoming week are more than enough reasons for me to recommend investing in Plug. This company is far from done in rewarding its investors.
Q.How do you determine how much to put on a stock, how you determine how much to put on each stock? How do you minimize risk?
A. I like to split up my portfolio into percentages 75% in holding stocks, 25% in day trading,options,pennystocks. For penny stocks I usually put 500-1000$ each. For Holding stocks 2000-4000 each. Basically never let ambition and greed get the best of you. Never risk more than you are willing to lose. This is obviously all dependent on the investor some people can afford to lose $10, $1000, $10000, $100000, etc. Trade within your economic means. If you can afford to lose $5000 and you feel fairly confident in a company well then by all means go ahead and invest in that company.
Q. Would you say DDD is more of a stock to trade, or a stock to hold for the long term.
A.Stock to hold and buy for the long term.
Q. What books would you recommend a beginner about day trading?
A. “How to Day Trade Stocks for Profit” by Harvey Walsh. You can find his book on amazon for about $17. Great book for day traders
Q. Does you or your team invest or trade gold or silver?
A. I do not trade in gold or silver in my fund. I do personally own silver coins. A very long term investment
Q. How do you find stocks to invest/trade?
A. I find my stocks to trade by looking for my strategy set ups on the charts. There’s no perfect strategy out there. Choose any strategy that works for you
Q.What is technical analysis?
A. Technical analysis focuses on the stock charts instead of the company. There are plenty of technical analysis strategies out there. I focus on chart patterns instead of indicators because indicators lag. Chart patterns give you more of a prediction of what will happen.
Q.Best marijuana stocks for the long?
A. Long? HEMP,TRTC,MJNA,CBIS,MDBX,PHOT. Remember all these stocks are media/hype driven by news of legalization/expansion. Stay updated to the news on the Marijuana Sector because when news does come out, it can move very fast.
Q. How do you get rid of shares with such low volume, like today, someone bought 400 million shares of $GARB. I can’t even sell a million shares at the bid price.
A. Thats strange, do you have a all or none sell order??? That may be the case because I had a 12mill sell order of GARB at .0002. It sold 7 million for me but it didn’t sell the rest of the 5 mill. If I had an All or None sell order my trade would not have gone through. (A all or none order sells/buys all the shares in the order sheet or none at all). So maybe that was your problem
Q.will you be adding more shares into plug if they hit earnings?
A. This is easily one of the most important earnings for PLUG. They have a history of over promising and under delivering, ( Compared to Tesla which under promises then over delivers). PLUG could be classified as a momentum stock and since its a momentum stock it will either have a tremendous day or horrible day. Stay tuned on March 13 10am EST.
Q.When will buy a good time to jump into DDD, I’m thinking of buying a stock/fund.
A.I am still watching DDD but my favorite stock in the 3D Printing Sector is VJET. To answer your question I will most likely buy DDD if it falls between the 55-60$ range, the short-intermediate future of 3D printing is bearish mainly because the hype is dying down. Keep an eye on VJET mainly because it is similar to DDD in so many ways therefore I can see a DDD like growth in its future.
Q.What do you think of HEMP?
A. I personally like Hemp as a MJ stock along with MJNA, TRTC,PHOT,CBIS,MDBX
Q. How long would you hold APRU?
A.I held APRU over the weekend mainly because I bought it mid-day. If I buy it in the morning its usually gone by mid-day. APRU was down 40% when I bought it (300,000 shares) moved up to 30% down. 16% gains and I’m holding hoping for a bounce on monday then I’m out.
Q.Thoughts on BYSD ??
A.Wouldn’t touch it. It is a coin related in the Bit-coin business, This also applies for BITCF another bitcoin company. In short I would stay away from Bitcoin entirely.
Q. when will plug have earnings?
A.It was scheduled for 3/27 but they moved it up to 3/13/14 10am EST
Q.Is it worth buying more plug?
A.I bought 316 shares at 3.06 and 100 more at 6.15 I have some funds that should clear up by their earnings. If they hit on earnings ( revenue, Guidance) this stock could go on a tear much bigger than the run they had last week. ( Personal Estimate of 11-14$ if they hit earnings).