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Anyone care to teach the forum members how to read stock

Discussion in 'Making Money' started by GreenGoblin, Dec 30, 2010.

  1. GreenGoblin

    GreenGoblin BANNED BANNED

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    I'm a straight up NOOB! with the stock readings, I'm sure 1 of you guys can share with the rest of us how to read stock.
     
  2. cyberzilla

    cyberzilla Elite Member Premium Member

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    I have no idea about Stock market! But try these links..

    How to Read A Stock Table/Quote:

    Code:
    http://www.investopedia.com/university/stocks/stocks6.asp
    How to read stock charts:

    Code:
    http://www.swing-trade-stocks.com/read-stock-charts.html
     
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    Last edited: Dec 30, 2010
  3. luckyzkhbk

    luckyzkhbk Registered Member

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    i'm last year accountancy student i know everything about stock market.
    tell me what do you want to know about stock market ?

    i dont think there is anything complicated in reading stock market anyone can do it after doing some research
     
  4. yuyo

    yuyo Regular Member

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    this will be good to know. can you share i want to trade pennystocks next year, but i also need how to read those charts. in order to make the right decision.

    thanks
     
  5. macdonjo3

    macdonjo3 Jr. VIP Jr. VIP Premium Member

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    Left to right I think.
     
  6. Cynical

    Cynical BANNED BANNED

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    I was thinking about getting into penny stocks as well. I saw a very informative video a while ago about penny stocks but I can't remember where.
     
  7. PitchBlack*

    PitchBlack* Junior Member

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    Why do all noob investors want to trade penny stocks lately? Its the worst investment decision you can make. You might as well go gamble your money away in a casino, atleast you will have some fun. Education, money mangement (stops, limits, position sizing etc) and research are the way to go. Look for some low cost stocks trading on the NYSE or NASDAQ, atleast you have some regulation and wont lose your shirt.
     
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  8. Wilder1047

    Wilder1047 Newbie

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    To the person above - ALL stocks only appear to have regulation - you can lose your shirt in ANY investment... Every stock is being manipulated. Because after all... the entire economy is being manipulated!! And we are NOT in an economic recovery - so be careful!!

    To figure out where to invest your money in the stock market depends on your risk tolerance - as well as your age. If you're in your early-mid 20s. Invest in penny stocks. If you lose your money - you're young, go make some more. But the gains are unparalleled. They could set you up in a big way financially - people say it's just a lottery ticket... as I said in a previous post - learn to separate the bull from the legit - if you can't to do that, get off the internet. Not all penny stocks are evil..

    People think they're all 'pumped and dumped' by promoters - who are the worst people in the world you know - haha. There are plenty of promoters out there who are actually finding very legitimate companies and letting people know about a great position to take in a stock... find them.. network with them - see if the person seems like a legitimate guy. The internet has connected us all - the rich got richer through networking and master minding - now it's our turn!!

    Goto youtube and type in informed trades. This guy has put up a 75 part video series on how to trade stocks with technical analysis - (chart reading.)

    I left the trading game a year ago - and came back because it just interests me. I watched his video series - and I'm up over 100% in trading pennies.. on a paper portfolio. I want to make sure I'm pretty honed in before I invest any real cash. I've been burned before in this game.. but - every investment I've ever been on the losing side of - I can clearly see all the noobie mistakes I made.

    Anything past that video series, try investopedia - that will pretty much tell you ALL the ins and outs about trading.

    Pennies have two allures - first off obviously the potential for big gains - which can also turn out to be big losses of course.

    secondly - they're relatively unaffected by the actual economy. Look at stock charts dating back to the crash in '09 - you can see the big stocks CRASH...

    Pennies just went along in their own little world.

    Not to pick on anybodies age here - but if you're 35+ with a family, kids, mortgage, car payments - and are living a mediocre life in terms of extra cash lying around. Then, penny stocks aren't for you - cause they can be very volatile and wreck you.

    But, you should only trade with risk capital in the first place since there is no 100% safe haven in the world of investing.
     
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  9. Mises

    Mises Junior Member

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    Thank you! So much on penny stocks on this forum lately- everyone just wants to get rich without doing any work- it's not that easy. If you are serious about it, look at legitimate stocks, do research and market analysis, then invest in legit companies.
     
  10. Wilder1047

    Wilder1047 Newbie

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    For people interested.

    Take a look at ISCR - the indicators are looking good on it. Could pop.
     
  11. Wilder1047

    Wilder1047 Newbie

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    For people interested.

    Take a look at ISCR - the indicators are looking good on it. Could pop.
     
  12. shadowedsniper

    shadowedsniper Junior Member

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    Its true... not to mention the poor liquidity of penny stocks. If you have money to spend go with the stocks that have fairly aggressive yet relatively safe gains year after year... GOOG, AAPL, IBM, etc.
     
  13. bakxos

    bakxos Regular Member

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    All the links that i have checked talk about technical analysis.

    In general, there are two different types of analysis for equities.

    -Technical (try to find a trend in the graph) which is a very good way to waste your time and its exactly the same as chasing a witch (at least in my opinion). In other words,someone somewhere said that after two ups, there is a down. He also said that he is sure about that. So people try to find the ups and downs. The assumption is wrong though:)
    -Fundemental analysis (identify strenghts,weaknesses,potential, growth opportunities etc). It requires some reading/commercial awareness but you know, its more robust and what its actually used by academics and all serious practitioners. You need to understand the markets in general, see potential growth, be able to read financial reports and know whether a firm is going well and whether its full of BS etc. It takes some time but
    "there is not such thing as a free meal".
     
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  14. Wilder1047

    Wilder1047 Newbie

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    First let me say this is not to create petty arguments on a forum ? this is to straighten out the investment advice that has been given on this board.

    Just taking a look at those companies on a 1 year scale.
    GOOG 01/08/10 - $602.02 01/07/11 - $616.44 % Increase - 2%
    AAPL 01/08/10 - $211.98 01/07/11 - $336.12 % Increase - 59%
    IBM 01/08/10 $130.85 01/07/11 - $147.93 % Increase - 13%

    So, as you'd assume Apple did have a pretty good year - Macbooks and Iphones are taking the world by storm - IBM not too bad either(in terms of large caps) - Google was pathetic.

    Let's actually go back further to when the markets took a wee dive.
    GOOG 12/07/07 - $714.87 11/21/08 - $262.43 % Decrease - 172%
    AAPL 12/28/07 - $211.98 11/21/08 - $82.58 % Decrease - 156%
    IBM 07/18/08 $129.89 11/21/08 - $74.88 % Decrease- 73%

    Now - I know that the markets have rebounded (Google hasn't even hit the same highs).

    Take this into consideration (especially after reading above that Technical Analysis is a waste of time) The market crash was clearly marked by TA indicators - even the MACD - a very simple system to read - was pointing at TIIMMMMBBBEERRRR!!!

    Now obviously - the three companies here have very good management and all the rest. Unfortunately, that would not have prepared you for the crash.

    But, Technical Analysis would have alerted you to what was happening - and you actually would have been able to take a short position and turn those losses into even more profits.

    You may have heard of Bulls, Bears, and Pigs.

    Bulls are people that buy and profit during times of stock price increases.

    Bears are people that short and profit during times of stock price decreases.

    Pigs are greedy morons that lose in all of the cycles - yet may get lucky.

    But, the most successful traders are those that play all cycles of the market.

    I'm not discrediting Fundamental Analysis either - it's actually a better skill to have when you're trading penny stocks - simply because pennies are so volatile - charts don't really tell you a very clear story.

    Although, my first experience with trading was with a penny stock under the symbol NEOM. They hold the rights to QR codes ? those little barcodes that you scan with your phone to take you to a website. This stuff is quickly on the rise ? yet I lost nearly my entire investment on this stock ? it is yet to regain the price it was once at. And looking at it now ? after learning chart reading ? I realize I was an idiot for holding onto the position for as long as I did.

    If you can do back checks on those that are running companies - and find the current CEO has a great track record taking companies to great heights - then that could be a company that you may want to even buy and hold for a certain amount of time.

    It is also true that penny stocks are often the victims of manipulation - simply because they have less volume so they are much easier move with mass buying.

    The majority of time - what has actually happened is the company has gone to stock promoters and told them to take their stock price to a certain level - in which they receive compensation.

    So, if you see a company gain 1000% in a day which is NOT uncommon- the chances are that news was released - but, it has been agreed by the company and promoter to pump up the price artificially.

    One way to recognize something like that is about to occur is if you find a stock that has no volume and you watch the L2 (watching the orders come in) you will notice a lot of small buys coming into the stock. That can be a great indicator that people that know of the pump, are taking positions in the stock before it takes off.

    As you can see above - I told anybody interested to watch ISCR (could have locked in a 40% profit since that alert) - not only did the TA on it look half decent - but they released some PR noting they would be releasing financial information on a new product they have on January 10th ? this Monday.

    For one, a company doesn't usually draw attention to itself when it is about to release bad news.

    Secondly, there's a very good possibility that InstaCare(ISCR) has gone to promoters to tell them to pump up the price when they release information on Monday. So, taking a position in this stock will probably result in an artificially inflated - large percentage gain.

    Also, in terms of economic times - stocks are not something to buy and sit in.

    This false recovery period we are in is going to be short-lived.

    Take into consideration that when Japan went into Hyper-inflation mode back in the 80's. They had tried printing(stimulus packages or quantitive easing) their way out of their problems, twice. Which led to way too much money on the market - which obviously devalued their currency so much - that they're still feeling the effects of it today.

    Guess who else has recently issued a second round of quantitive easing?! The US of A!

    To top that, Bernanke (the chairman of the Federal Reserve) has said they won't hesitate to do a 3rd round of it!!

    Hence why people are saying to buy gold and silver - because they have actual values to them due to supply and demand(can't just print this stuff). So, when hyper-inflation kicks in ? your finances will increase, as paper money bites the dust.

    Silver is actually due to make the largest increases due to the reason below.

    "HSBC and JPMorgan are among the largest players in the silver market, and they are accused of making hundreds of millions of dollars of illegal profit from violations of anti-monopoly rules. Both of the two suits, filed in the past 48 hours in New York, seek to become class actions, open to everyone who has traded silver, and are seeking damages potentially reaching into billions of dollars."

    They have been manipulating the price of Silver - which means it is heavily undervalued at the moment - currently under $30.00. Whereas gold is somewhere in the $1300.00 range.

    Interesting when you consider silver is more valuable to us in terms of its industrial uses and there is actually less of it in the world then gold. So, who knows what types of gains silver could potentially make.

    Also, things like Obama Care are great - but, not right now they aren't. The actual debt of the US government is estimated to be over $100 trillion dollars - and at the current tax rates they won't even be able to pay off the interest owed on that amount - even if the public was taxed on 100% of their earnings they can't pay that debt off.

    So, as you can see the economy is far from being in good shape - and is due for another, more severe, correction. This all points to the fact that - we are not in a buy and hold place right now.

    The good news? Penny stocks are relatively unaffected by these sorts of things - they can offer insurmountable gains - gains that you can take and then put into gold and silver. (The only thing you should even be considering to buy and hold at the moment)

    Now you can see why in an earlier post - I said the entire economy is manipulated - giving you no real safe haven in terms of trading.

    Is it viable to think that the people running the world are unaware that their actions are crippling us?

    Is it a coincidence that companies like Ferrari have posted record breaking numbers in times of despair for the middle class?


    The rich are getting richer - we are in what is now being coined as a 50 trillion dollar change in hands.

    More millionaires were made during the great depression than any other time in history.

    Educate yourself and you'll be on the winning side of the greatest wealth transfer in history.


    Sorry for the rant - but the stock market is essentially meant to be a mirror image of the economy - so to understand my stance on stocks - you have to see the current economy for what it really is.
     
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