«
»

Buying Stocks Today

We live in an era where buying stocks is as easy as ordering a pizza. However, just because it is such an easy thing to do, doesn’t mean that we should do it without any type of research. Researching your stocks before you buy them is the most critical part of stock selection. You should look for the following conditions:

  • The overall market indexes like the S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite are in an uptrend.
  • The stock you want to buy is in an industry segment that is in an uptrend.
  • The company should be showing above average earnings and sales of at least 25% and accelerating

Only then, buy stock in the company if you know exactly at what price you want to buy it and what price you want to sell it. Get in the habit of developing a system of buying and selling stocks systematically without emotion. Develop rules for what you will do in specific situations and follow them to the letter.

To gain the experience to buy stocks online, spend time practicing your craft. Use the stock market simulators available on the internet. Compared to the generation before us, practicing has never been easier. Gone are the days of old fashioned paper trading. Today, we can practice our investing almost in real time. Many brokerage accounts come with this capability built right into any account you have with them. This is an excellent way to learn from your mistakes without losing a dime. Take advantage of it.

Once you have started doing this, keep track of the decisions you have to make and start formulating an investing checklist that will form the basis of your trading strategy and follow it each time. Learn from what worked and what didn’t and make adjustments. Only in following such a rigid system will you learn how to buy stocks the right way, based on the data and experience — not on emotion.

Learn more about stock market investing at Stock Market Investing Today.

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Reddit
  • De.lirio.us
  • StumbleUpon
  • Technorati
  • Yahoo! Buzz
  • YahooMyWeb

Related posts:

  1. What To Consider When Buying Penny Stocks
  2. Why online stock buying is superior
  3. Shorting Stocks as an Investment Strategy
  4. Stock Market Investing
  5. How To Buy Stocks

This entry was posted on Saturday, September 19th, 2009 at 7:28 pm and is filed under Investment Strategy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.