Tuesday, August 27, 2013

10 Ways to Make Money in the Stock Market


Your 401(K) probably sucks eggs.

Get a regular brokerage account at Ameritrade, Fidelity, E trade, Scottrade, or Vanguard.

Forget for the sheeple news.  Forget the talk and chatter of people you have to be around.  Forget salesman and politicians.

Definitely forget salesman who get paid whether you succeed or fail.

Remember this: buy low and sell high.  If the market is high, hold off on buying.  Don’t listen to people who act like all time in the market is going to make money.

Don’t be anxious to make a trade or to force a trade when the market is high.

New companies can be great investments.  Research recent and upcoming IPO’s.  Is there a new business you heard of that sounds interesting? Research it.  Visit the store.  Look at the company’s web site.

You have to decide if you have found the next Netflix.

Investigate rumors you read and hear.  There’s a saying, “Buy on the rumor. Sell on the news.” On business news channels, investment newsletters, and major online investment sites, you will hear rumors and hypothesis for investments.

I once read in a newsletter that a small company may land a big contract.  It did, and I made 40% in a few days. (Keep in mind there is risk.)

Some financial writers will identify major trends and predict which stocks will prosper as a result.

You have to use your own judgment to determine which stocks to buy. There are plenty of bad investment advisors out there. 

Throw away newsletters that come in the mail that sell micro caps.

Value investing works.  What major stock is down 50% or more?  You have to determine if the company is finished forever or if it can be turned around.

You have heard of Warren Buffet, the legendary value investor.  Buffett buys shares of excellent companies that are temporarily down on their luck.  You could do the same. 

Next time recession strikes, read investment newsletters, run stock screeners, and look at your watch list and portfolio and see what the greatest values are.

Since the 2000 recession, your enemy has floated the idea of confiscating retirement accounts.  You may want to consider regular accounts and possibly offshore accounts.  You are on your own.  One Congressman recently called retirement accounts “our money.”

A company announcing expansion could be good.  If you read in the news that a store plans to add 50 stores this year, research the stock.  Forget the free newsletters that come in the mail. Forget spam on the Internet.

The major trends are your friends; at least they should be if you have them at your back.  What trends do investors, workers, and companies deal with now and see in the near future?  Here in the U.S. we have the aging of the Baby Boomers, immigration, cost cutting, outsourcing, rising higher ed enrollment, smart phones, social media, app development, domestic spying, and rising welfare costs.  There are way more.

If you read that a company is going to acquire another company or be acquired by another company, you should investigate the company getting acquired. 

New management being announced is usually good for a stock price. 

If there is a political revolution in a country by a party that is pro-capitalist, decide if you should buy the country specific ETF.

Tech revolutions make fortunes.  How many millionaires were made by computers, software, and the Internet?  We may have to sit around a while.  I have to think we’ll see things change.  But nanotechnology, neuroscience, alternative energy, robotics, organics, and more fields can lead to more millionaires.

Again, throw away the free newsletters and avoid spam.  Avoid sales talk.

Last I heard, IBM has the most nanotechnology patents.

Get rich options could be an idea, if you can afford to lose 90% of the time.  Yes, most options expire worthless.  Go to CBOE dot org to learn how to trade options.

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