stocks - how to start

[stewie]

may seem like a dumb question, but ive searched through some pages and couldnt find anything, so i figured id ask.

im thinking of investing some money in stocks, but ive no idea where to start or how to start. do i just walk into my bank and have a meeting with someone?

how did all of you start?

im hoping to start real small, figure out what things mean and how things work, and then step up from there. i take money very seriously, and im not wanting to be a fool and throw it all away, so im looking for a guide in the right direction.

anyone able to help me?
if possible, able to meet up at a coffee shop or something and run it through me?(its easier that way, i can get all my questions out of me faster rather than sitting here for 3 weeks going back and forth...and i learn much easier/faster when something is told to me rather than me reading it)

so yeah, anyone able to help me out here? or at least point me in the right direction as to where to start?

TIA

[Wild_Penguin]

First you have to open a trading account. Most accounts you have to open with a min. $1000. For a first account a would say go with a low commission company like qustrade.

[strykn]

The funny part is, you have to lose money to learn.. it is the name of the game, inevitable

[stewie]

I'm expecting to lose money, but I want to learn what I'm doing first before I invest larger amounts than what I will to start with.

I've lots of questions though, such as, if I were to buy some, would I be able to sell and buy from my computer? Or do I need to go to a bank and tell them to do it?

Try not to laugh, I'm starting from square 1 and nobody I know was able to help me out in this field.
Posted via RS Mobile

[W2K]

You can buy/sell from your phone or computer. Or you can call in to your broker to buy/sell but it costs a lot more.
questtrade has free virtual money accounts you can sign up and practice with. Im sure other brokers might have it too.

[Ulic Qel-Droma]

lol bump this thread. I get a lot of PM's asking for advice.

a lot of questions get ignored in the stock thread. It would be great if people could help out newbs in this thread..

people should try to help answer as much as they can here.


my first advice is (if possible), find someone that already invests that you can go and pick their brain. whether it be an uncle or your dad or a friend or whatever.

you'll learn more sitting with them for a day than you will asking questions here.

once you have questions then you can ask here.

but just remember, everyone has a style of trading.

it's like a martial art.

you could ask a kungfu master and a MMA fighter the same question and they'll tell you two completely different things.

everyone has their own style. you learn and you slowly integrate what works for you.

start by reading about the different types of orders you can put in.
stop orders, limit orders, market orders etc. (and remember not all markets have all types of orders).

learn what hours the markets you wanna trade trade on, and why.




start virtual/paper trading.

its kinda like a video game... you read the very very basics, and u just fuck around with your virtual account and learn and play as you go on. and any questions you come up with just ask.

question... why did you lose money? why did you make money? what happened?

strykn is right... you will only learn through your losses.

gains are nothing.

learning how to control your losses is everything.

it's like running a marathon where you're the only competitor.

your goal is to get to the end... no matter how long it takes you.

you focus on how to not trip, or wipe out, or fuck up too often along the way.

everyone can get to the end of the race, just most people fuck up too much and lose confidence and quit.




forget the term "a good offense is a good defense". doesn't work for trading.

the market is like a giant pool of money, thats constantly in a vortex.

once in a while you reach into this pool and you manage to grab some money and put it into your own little pool.

but every time you reach in, you expose your own pool of money.

the vortex will always try to suck your money away.

just learn to protect your own fund and only reach into the vortex when you're SURE you'll grab money.

eventually u might get good enough that you can grab a little each time you reach in.

eventually you realise you grab more money from the vortex faster than it grabs money from you.

then you start putting in two hands.. three hands.. 4 hands.

eventually you'll get good enough and confident enough you can put in 100 hands.

even though each hand is only pulling a little out. with 100 hands you can pull a lot.

[Sushi604]

subbin' for dem good infos

[stewie]

my first advice is (if possible), find someone that already invests that you can go and pick their brain. whether it be an uncle or your dad or a friend or whatever.

thats why i came here lol, none of my friends that i hang out with on a regular basis play with stocks.

ive been on medical leave for going on 6 months with many more months ahead of me, so i cant ask any co workers...and even then...they're all construction type workers who are mainly weekend warriors. so ill skip asking them lol. but with all the time off i have, im forced to stay at home (not allowed out of my house without supervision) so ive got from 7-3 to basically sit around and mess around and learn and see how everything is done.

i was hoping that someone on here with a decent knowledge would be able to meet up with me possibly and just show me what they do and how things work. (yes, ill even buy you a coffee and a snack lol)

ive got a virtual stock game on my iphone, it gives you 100k to start, but im only using the ammount i actually plan on investing. but even then, the game is quite vague...watch, buy, sell, summary. it doesnt tell me how things work.

anyone up for a challenge? sit me down, show me how its done, what methods you've found works for you, what you've found to be risky actions, etc.

[Ulic Qel-Droma]

lol, you never know (about your construction type friends).

we have a guy at my work that comes in once in a while, and chats with his broker. he's a construction guy.

i think he made 75k last year off playing gold futures. its probably at least the same if not more than what he makes at his job.

he totally doesn't "look" like the type of guy that plays the markets.


first you have to figure out if you're more comfortable with technical analysis or fundamental analysis. some people use a little of both. there is no right answer.

the thing about the markets is, no one really knows how it works. you only have degrees of how much you know. hence why people and even those mega institutions still lose money.

you just kind of figure it out as you go along.

u look at the charts... you.. buy low.. sell higher...

it's... kinda like educated gambling. betting on human psychology.

you're probably trying to figure out questions like P/E ratios and all that stuff.

i've never traded a stock in my life, i only trade futures. for those stock questions.. im sure some of the other users are a lot more familiar than I am.

lol ask strykn he seems to be doing pretty good haha

[hirevtuner]

open a demo account first, use play money before using hard-earned money
read some stock charting books and print charts and analyze
trial and error and repeat

never consider taking any news in any particular stock because it has been priced in

[hirevtuner]

and one more thing, like to invest in a specific stock, look at the sector/index first and determine if the buyers/sellers are in control then you can see the direction the stock may be heading

[strykn]

Ulics post is probably the best advice post i have ever read regarding trading

invest in a lot of time studying market psychology, 90% trading is psychology

If you want to trade large cap and the market itself, you need a decent sized account and buying power unless u go options but totally ignore options for now, need to learn how the market works

When i started off, i picked a small cap sector and figured 100% exactly how those stocks worked (biotech) and built up a lot of capital and now i only trade the real market , the big boys

ulic is right start fucking around in a paper account for a some months, but be prepared its 100% different ball game with real money, then u are tested on how u control ur emotions

this is a huge mountain to climb if you want to be profitable, the path will be a huge roller coaster of ups and down... you probably won't be profitable for at least a year++ , most people give up/ quit

a lot of people thinks stocks is easy money, if you think like that you have already lost

start off by picking a sector/type of stocks you'd like to trade and go fuck around in a paper account while reading up on psychology of trading

there is just so much stuff to know its endless, the best way is learning your self IMO

and i wouldn't spend any time researching fundamentals of stocks if your TRADING like PEs , eps and all that stuff. A trader only looks at TICKER and PRICE and VOLUME

also fundamentals of the MARKET as a whole.. very important.. know what NEWS moves the market can hit some huge trades...

[Selanne_200]

I'm surprised no one has mentioned this yet, try to diversify. Don't put all your eggs in one basket. I know it's hard especially since you have a limited amount of start up money but try not to blow it all on one stock. For starter, I would try to start reading up on business news and just news in general, since most stocks generally move in the same direction as market expectation and speculations. Do you have a certain area you feel comfortable in? maybe your own personal insight? For example, one would expect the value of Wal-Mart stocks to rise, if the economy remains slow and since they are a large supplier of commodities and their target market is low income families, I would start connecting the dots that way. Of course, you can always read up on more technical stuff, and learn to read balance sheets, income statements, looking at BETA values, EPS and all sorts of good stuff

[stewie]

Would it be smart for a first timer to invest small amounts in many stocks?
Buy/sell on a daily basis? Or invest larger amounts in well known stocks with low risk?
Posted via RS Mobile

[flagella]

One thing that scares me is that you cannot even research yourself to find out how you can get started on investing in stocks.

Also, take some courses and at least get some fundamental knowledge in finance? Based on your comments, you have absolutely zero clue. Not trying to be discouraging here, but there's only so much you can fish on a forum. If you really plan to invest yourself, then get serious and really do some learning first.

[stewie]

Originally Posted by flagella

One thing that scares me is that you cannot even research yourself to find out how you can get started on investing in stocks.

Also, take some courses and at least get some fundamental knowledge in finance? Based on your comments, you have absolutely zero clue. Not trying to be discouraging here, but there's only so much you can fish on a forum. If you really plan to invest yourself, then get serious and really do some learning first.

First post, it's how I learn. Some people can pick up a book on how an engine works and just like that know everything about it. For others, such as myself, I'll read the book, sit there saying wtf...however, once someone shows me and puts the knowledge to use, I'll never forget it.

Just the way I learn things.
Posted via RS Mobile

[Ulic Qel-Droma]

you can start with this:

School of Pipsology | Learn Forex Trading

preschool etc.

first of all, a thing to remember... it is geared toward forex (currency) trading and a bit biased towards it as well.

all the technical patterns and stuff they show you, u gotta remember nothing is 100%, just because a formation forms.. it doesn't mean the result will happen. it's just something to look out for.

same as fundamentals reasons (economics/news)... market doesnt react 100% the way u think it will.. sometimes it does the exact opposite. or i should say a lot of the times.

i know you're looking for actual like.. someone to show u a platform and where to click and all that. and how like... what orders mean and what buttons do what, and etc ... that's actually very easy and quick to learn.



honestly to start... just download any virtual trading.. or pick a stock u like.. anything.. can be anything since you're just "fantasy" trading.

say apple or something, just pull up the charts and start following news... and just trade it.

just u think it will go up or down? and just.. mark it down at what price u entered. and what price you got out.

maybe you'll hear news, and trade it. over the next while you might lose money... then u go back and wonder why it lost money, even if the news was good.

or u can even ask... then someone will explain their view as to why, someone else will explain their view as to why.

then you can research on what they say, and have your take on it.

reading charts and fundamental news is kinda like reading a crystal ball.
everyone will say something different.

you can show two technical traders the same charts.. and one could say buy and one could say sell, just because they see different things.

just start trading fake money... if u keep winning money, over and over again.. then whatever you're doing.. you're doing it right.

if u keep losing money... then you know you're doing it wrong... you could even use a simple strategy such as... do the opposite that i wanted to do. and if that starts making money... youre doing it right.

it's THAT simple..

people dont think it is, but literally its like going out into the playground and just... playing... everyone has their own way of playing.

if you make money... keep doing whatever you're doing. even if u don't know what it is.. if it keeps making money you're doing it right.

and vice versa.

thats why there's paper trading... you can just test anything that comes to mind. anything you can relate...

some people might have retarded rules like, if it closes down today, i will sell at open tomorrow, cuz likely hood of it going in the same direction twice in a row is high.
something like that! i know it sounds super elementary and like "no fuckin way" but u gotta remember:

the best strategies are usually the most simple ones.



one of the brokers at where i work tests all his clients... and shows them "how easy" trading can be.

he pulls up a line graph of some chart... he doesnt tell u what the chart is (it doesn't matter).
and he just keeps scrolling and you just say which direction its going.. and when u think it changes direction, you tell him.

so its like.. oh the lines going up.. up.. up up... oh its down.. down.. up up up..d own... down...

and after 1 year... guess what. 100% of the clients make money.

when i was in taiwan, at a trading firm watching guys hired off the street to become traders... most of these guys if not all have no background in finance or anything.
their strategies were almost the same... they use candle stick charts..and NO indicators... they just kept watching the direction of the chart and just traded..
they "felt out" with their intuition.. like a video game guessing which way the line is going.

and they make money. consistently.

I'm a technical trader.. im like 90% technical 10% fundamental.

what that means is i read charts. thats it. i rarely care about news (i watch out for reports).

i draw lines in charts and stare at charts for hours looking at patterns i can find and shapes and all that shit. and i make my decision based on that.

strykn there is almost all fundamentals, which is completely opposite of me. but yet we're both able to make money trading the same market.


you literally have to be thrown in the water, and u just figure it out... this is why they don't teach you this in school... it can't be taught.. there's no one way that is correct. it's very very subjective.
every way is correct. and every way is incorrect.

just download a paper trading program. pull up your favourite companies based on whatever you want, and trade... kinda like going into a casino... u just put your money on red or black or a number... and slowly figure out the roulette table..
some people write shit down, some people do it based on how many reds or blacks in a row (yes i know there's the mathematical sense behind each roll doesnt affect the next but im just using this for example sake), you just do.. what works for you. lol. it's almost retarded. it's like a grown up's version of a video game.

[Ulic Qel-Droma]

here

watch cnbc live online | cnbc news online | free cnbc streaming | channel cnbc | web tv cnbc tv | news tv cnbc (delayed like 3-5min)

CNBC live... watch this everyday from 6am-3pm or if you're awake during those hours.. just leave it on.. and watch what they say.

you can be watching charts at the same time and correlate things they talk about to how the market moves.

etc. you can learn a bit from watching this channel.

[strykn]

Originally Posted by Ulic Qel-Droma

their strategies were almost the same... they use candle stick charts..and NO indicators... they just kept watching the direction of the chart and just traded..
they "felt out" with their intuition.. like a video game guessing which way the line is going.

and they make money. consistently.

i do this a lot, it is really that simple lol

[dasani604]

Originally Posted by stewie

Would it be smart for a first timer to invest small amounts in many stocks?
Buy/sell on a daily basis? Or invest larger amounts in well known stocks with low risk?
Posted via RS Mobile

1) Depends on the size of your initial starting fund. I started out with less than 1k, spread it over 4 stocks --> made an overall gain of $20 over 3 months --> better than loss! --> in hindsight, wasn't the greatest idea. Learning from my mistake, don't spread your starting fund too thinly if its not large to begin with. If it is small, like mine, there is consequently a bit more risk involved if you want to see more gains than just $20.

2) This you'll have to figure out based on your level of comfort and the size of your starting fund.

As the other posters have stated, brush up on some investing/trading knowledge, decide which style you prefer (frequent trades or long/hold investing, etc.), and begin. You can paper trade if you want, but as already previously stated, it's a different ball game when real money is involved.

Also, watch out for earnings reports - you'll develop a love/hate relationship

edit: to further emphasize this - psychology. You'll be playing against populations of people as well as yourself (emotions, behavioural aspects).

[Ulic Qel-Droma]

First thing I check everyday:
Economic Calendar - Bloomberg


second thing I check (for futures):
http://www.barchart.com/commodityfut...w=chart&note=1

perhaps a stock equivalent:
http://www.barchart.com/stocks/heatmap.php
http://www.barchart.com/stocks/marketoverview

barchart.com is pretty good for overview stuff. play around with the site. it has everything.

[stewie]

Originally Posted by Ulic Qel-Droma

you can start with this:

School of Pipsology | Learn Forex Trading

awesome post!! thanks!!


currently reading every word from that site

[Infinitii]

What does your typical trading morning look like? What do you have open on your computer, what do you look at, how do you use what you want to buy (what news site do you guys use)?

[strykn]

wake up at 5:45 , check futures, check market watch, check CNBC, check Market leaders, check headlines, check EURO/USD , check european market, check TLT,

Come up with a conclusion on the sentiment for the day and what smart money wants you to think

Watch 30 minutes of open for confirmation of theories created

Enter trade!

[Ulic Qel-Droma]

futures:

-1415PST all markets close.
I check my positions (if I have any). Then I see if I can lock in any profit, or if I can add on any positions. I take note.

I check the daily charts for all 36 futures I follow (energy, indices, metals, currencies, grains, softs, meats... i don't watch financials [bonds etc]).

I add on any new support resistance lines or any patterns or anything I can pick up. This is my time to play around with the chart with the day ending and the new bar formed.

I take note of any futures that should be "on watch", they look good but not good enough to enter a trade.

I take note of any futures that are good to go. I write down where I would potentially enter and where my stop losses will be.

Typically other traders/brokers I talk to shoot the shit quickly and trade any ideas they have or anything they see (this can happen any time, emails etc whatever).

the above doesn't take very long, like 5-30 minutes tops ... twiddle my thumbs and wait for....


-1500PST markets open
I revise/edit my positions if need be.

I put in orders for anything new that was good to go.

between now and midnight, markets are typically slow, but may still move. Depending on my positions and how I feel. I may keep my charts open on a side window and just keep an eye on it. typically check every hour to few hours (If I'm at home that is).


-1700PST asian markets open... (Asia times depends on daylight savings)
typically doesn't matter to me, but it's good to know.


-2300PST
I scan all the markets again for any early movers.


-0000PST Asian markets close and european markets open.
Things typically start to move now, depending on how things are... I could start trading now or editing my orders if markets moved in an unexpected way.

-0600PST North American stock market opens
some futures may start to move even more.

-0830PST European markets close
good to know for day traders, there will be the end of the day run up or run down just before they close, intraday trends may reverse from all the euro day traders pulling out.

-1300 PST North American stock market closes
good to know for day traders, there will be the end of the day run up or run down just before they close.




-Before I sleep I check:
Economic Calendar - Bloomberg

I take note if any reports that would affect my positions. If there are none, then I ignore it and I can wake up whenever I want!

If there is a report that could affect my positions or affect orders I have in, I will wake up before the report.

After I wake up:
I immediately check my positions if I have any and then:
Futures - Daily Performance Leaders

I use this rather than my quotes because it's visually easier. I don't even look at anything except the big long green bars and big red bars. Anything big mover will be at the top or bottom of the list. I immediately scan for those and then check the corresponding charts.

If nothing new or exciting, or no big movers AND my positions are fine... I just take it easy and go do whatever else I want... hell I might even go back to bed (actually I usually do lol, who the fuck wants to be awake early anyway).

If there is something new or whatever, I do it.


-iphone apps: cnbc and bloomberg.
I only use them for their "alerts" for breaking news. Just nice to know, I don't trade based on any of those alerts, but you never know it could affect your positions if a war breaks out or some pipeline bursts or some politician says something stupid or some surprise announcement.



It sounds like a lot, but it's actually not that much.
I'm including most details I could think of... that would be a really busy day/night.


Most of the time markets are not doing anything, and I just glance a few times over the day (if I'm awake) and do my 5-30 minutes of planning a day and that's it.

There's no hard rules... I could decide to take a week off trading if I feel like the stress is getting to me, or whatever. Opportunities always come, if you feel stressed or fucked up just take a time out for as long as you want... that's the great thing about trading. lol. If you don't wanna work... you don't have to.

"If there's nothing, do nothing."