Stock Trading

Ok i dont get it how do people make money on this, i have been reading at vangurad-there investor education. One of the examples where when people make money for when they are 65…..30 year investment???

so how do all these young people driving there mercedes talking about they made it on the stock market how do they get so much money from it? buying one stock at a time? mutual funds??? how?

please help i really want to understand how this works….any help and breaking it down for me would be useful…

The stock market is a place where you can invest so many different ways. If you choose to invest in small unproven companies, it’s possible to reap huge rewards, or suffer huge losses. I liken that to going to Vegas and putting all your money down on a hand of blackjack, and that’s not investing.
The best way to make money in the stock market is to have a long-term plan and diversify across the market. This can be done with mutual funds. Over the last 80 years, the market has averaged better than 10% annually. You will have years where you’re up 30%, and also years where you’re down 20%. But have faith in the market long term, and you will come out all right
If you don’t have a minimum of 8-10 years to invest, then you should have other investments as well, like CDs or bonds.

When choosing a stock how would I go about reading a balance sheet when presented? What am I looking for that indicates a good buy? Any materials recommended to give me the base I need to read effectively? In addition, I would to talk about conference calls. When listening what am I looking for? Any key words or anything you may suggest to help a new comer in analyzing companies data?

Any websites/books to help increase my education?

Cheers!
Daniel

There is no single magic indicator. It also varies by the type of business. You don’t just look at the balance sheet in isolation, but have to look at previous quarters and years for trends. A few key issues:

Short term liquidity.
Overall debt level. Is it conservative or excessive for the type of business?
Were sales turned into cash?
Has there been a bulge in Inventory or Accounts Receivable?

A few excellent investment books:

The Intelligent Investor – Benjamin Graham
A Random Walk Down Wall Street – Burton Malkiel
One Up On Wall Street – Peter Lynch

I can’t think of any web sites worth recommending.

If you have a chance to take any courses:

Accounting (both Financial and Managerial)
Statistics
Finance, especially Portfolio Management and Capital Markets
Economics

Take the time to learn. It will save you a lot of money to avoid the usual beginner mistakes. Develop a sixth sense for scams and spam (lots on Yahoo Answers unfortunately).

Most stock market investors are comfortable with BULL phase of a stock market.But BEAR phase also provides ample of opportunities to earn a good amount of money.Would you pl. share your valuable ideas on Indian share market, with me.Pl. refer me the books, which you feel helpful to mature one’s knowledge in investing in BEAR market.Is there any distance education to learn specifically to trade in a BEAR market?

I am making a couple of grand a day buying a stock that gets trashed and waiting for it to recover. Like coke. and some resources/miners. I am waiting until things recover until i get some better indicators to go in full pelt. Until then, big drops – bu7y. recovery, sell

Its NSE’s Certification in Financial Markets.

Hell NO…

There is no "all encompassing" financial site. There ARE a lot of sites telling you how to(for a price)….but all in all you’ll just have to step in and go for it AFTER you do research.

Talk to a financial planner also….any info can be helpful….and you might decide the stock market isn’t the way for you.
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OH YEAH…one other thing I just thought of. There are investment clubs! In a nutshell….it’s a group of people that informally get together and share ideas on investing….just an idea

I have found the November 60 puts (options) to be exceptionally cheap considering the history of this stock. I can find very little information on this stock. Insider selling spiked recently.

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