Thursday, December 31, 2009

What's the best advice you can give a newbie at buying stocks?

I'm trying to find stocks that will grow within 2-3 years. What do you look for when buying stocks?What's the best advice you can give a newbie at buying stocks?
Start off with no load mutual funds. Instant diversification, professional management, and low fees. You're getting pieces of about 200-500 companies, meaning less risk than what comes with individual stock.What's the best advice you can give a newbie at buying stocks?
Do research, that is important. Also, find out what kind of growth do you want? A company that grows by 200% but has a 50% profit decline isn't exactly a win.





I am into dividend paying stocks right now. There are lots of strategies like Value, Growth, Couch potato, and various blends, each of which has their positive and negative parts and can have different values according to where you live. For example, the Canadian province of Ontario has figured out a way to tax the non-taxable RRSP's of Canadian citizens.
You need to understand the company and do research on their financial statements. Look at their stocks over the last year and compare to prior years. If they are at an all-time low, then buy. Pay close attention to news about that company. Look at the projections and the actuals, especially for last quarter. Do you know how to analyze financial statements and all that? Good luck and I hope they don't drop too much on you!
if you're a growth investor, then you should heed the advice of legendary investor phil fisher. check out his book common stock and uncommon profit.





http://www.fool.com/investing/general/20鈥?/a>
in buying stocks you are buying the future earnings of a company, focus on companies where earnings growth exceeds the price/earnings multiple.
1. Understand what the company does


2. Check the balance sheet for debt


3. Make sure you can afford to lose this money


4. Dont put all eggs in one basket
Buy what you know. If you don't know how a company makes its money, STAY AWAY from that stock.

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