Friday, January 8, 2010

What's the best strategy to making money in the stock market?

1. I do mean a lot a money.What's the best strategy to making money in the stock market?
Honestly, the best strategy is to have a fairly diversified portfolio that you continually add money to over a long period of time.





Boring, but gives you the best risk vs reward. Any good financial planner will tell you the same, and I know its true from long experience.





I have had stocks that tripled my money and stocks that i lost 50% on. In the end, I made the most overall by just using ETFs or index funds and putting money in every month over long periods of time.





Good luck.What's the best strategy to making money in the stock market?
The best strategy is to look at the paper and every day there will be some factors like P/E (stock price to earnings per share) ratios. Look for the best P/E ratios in each industry. Stay away from comparatively high P/E ratios as those are current favorites and it is better to buy what is currently out of favor. Ignore PPE (projected profit earnings) ratios as those are guesses from the companes that could be biased because they are providing the figures to investors to get them to buy the stock. Research those names with the lowest P/E ratios to see if they get some recent bad news. Then follow each stock every week and if a price had been going down and just went up, then buy it because it is on the upswing and if it has been going up and just went down, then sell it because it is probably going into a down cycle.
judging by your question it sounds like you know very little about the stock market. The first thing I'd advise you to do is just research what it is, what makes stocks move and look at some history of it.





Naturally the best strategy is to invest in something relatively cheap today that 10 ,15, 30 years from now will have gone up considerably. It's hard to pick the next walmart, berkshire hathway, apple, etc etc etc. there is so much you have to learn grasshopper
The only way that experience people make money in the market is they know what they are doing, why they are doing and how to do it.





They put together a sound program which includes


1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.


2 - Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.


3 - A written money management program in place. .


4 – A full and complete understanding of the rules %26amp; regulations of the industry.





Judging by the wording of your question, you have a long way to go before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.





Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.





Here is some reading material that can get you started in the right direction, The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki





Then try some of these


What Works on Wall Street by James O'Shaunessey


Beating the Street by Peter Lynch


One Up on Wall Street by Peter Lynch


The Warren Buffett Way by Robert Hagstrom


How to Make Money in Stocks” and 24 Essential Lessons for Investment Success both by William O’Neil





Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )





While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it.





Other website that can provide instructions and help with procedures and terminology are


Investopedia - http://www.investopedia.com/ Stock Charts - http://stockcharts.com/


http://www.investorshub.com/ http://www.1source4stocks.com/





Making money in the market is not difficult, but if you don't understand what you're doing, why you're doing it, and how to do it, you'll find loosing money in the market is very easy/
it depends on how much time you have. just live like a pauper and throw all your money in the stock market. when you die you can have a golden tombstone.
There are hundreds of ways to play the stock market and there is no best way, just alot of bad ways.
I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.


If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you to diversify your money and become much richer than you are today.





My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:


We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.





Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.





Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.





For me ';All stocks are equally worthless”





I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.





I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.





Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin… That´s why so many new traders (and investors) lose money.





Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.





The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.





But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.





It's easy to see why trading the open is the market's prime time for profiting from other online traders.





The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.





Learn to trade as a professional Market Maker, not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.





There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open, that means: if you are buying or selling short a 1000 shares per transaction, you´ll make $1000,$2000,$3000,$5000 or $7000 Usd ';IN MINUTES !!!'; not in a day, not in a week, not in a month or in a year, in less than 60 minutes... That's why I love trading the open so much.





I trade only when I have an edge and that means ';only the first hour the market is open';.





If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.





I can carry on for hours on how to make money trading online, but if you ask me:





';What is your best advise?





I will say:





Give yourself a BIG favor and go to this ';Top Secret'; site and learn how to get by yourself the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen.





www.onehourtrading.com





After you review this site you won´t need any system, strategy, book, software, guru or mentor to tell you what to do, you will be able to profit HUGE every day.





Besides, you´ll learn:





• The right amount of money to start trading…


• The best Online broker out there…


• Learn how to enter and exit a trade in seconds making Huge profits…


• Make more money than most day traders simply by trading one hour a day!!!


• How to reduce stress, limit risk and stay disciplined like a Pro.


• The 4 basic rules you should know, that every successful trader know, and amateurs don´t even imagine.


• How to trade against the amateurs and avoid like the plague doing it against the professionals , and why this will put you ONE STEP AHEAD of all traders.


• What causes more devastating trading loses than any other factor... and... How to avoid this pitfall! (Even savvy traders often fall victim to this! )


• Not to spend most of your day in front of a computer dealing with complex charts, software or technical analysis.


• Learn how to read the market´s open to make a huge profit just a few minutes after the opening bell.





All this and a lot more…





Good luck and good trading,





John Fontaine

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