Where Do I Start... Picking Stocks to Trade?

[Dompie1985 10]

Hi everybody, new to the forum, new to trading as well.

 

I have the knowledge and information about trading and have a TD account...

(Technical Analysis, support, resistance, trends, Flags, pennants, etc.)

I have lots of helpful websites bookmarked like stockta.com, yahoo finance, and much more.

My style of trading is sometimes Day trading, but mostly Swing and Position trading.

 

But my biggest issue is, where do I start picking out which stocks suit me best?

Should I look at whats doing good and bad today?

To narrow my options down, how do I review stocks that fit my budget? along with penny stocks

 

I have the whole list of NASDAQ stock symbols.

Do I have to start picking stocks out of a hat until I find something I like?

Do I have to research everything that comes to mind until I find something that fits me?

 

I'm sorry, I can go all day about this... Its very frustrating

Its like training rigorously for a marathon and not knowing where the track is.

 

Could someone please help... I don't want to be making lots of mistakes if it is not that hard. Or better yet, some advice on where i could get some hot stock tips before they go public (news)

 

Thanks A LOT!!!

[Spydertrader 10]

Where Do I Start... Picking Stocks to Trade?

 

You might check out this post.

 

- Spydertrader

[thalestrader 14]

I have the knowledge and information about trading and have a TD account...

 

From the tone, character, and content of your post, I would say you have everything necessary and know just enough to do yourself a great deal of financial harm.

 

If I were new to trading, and if I wanted to trade stocks, and If I did not have access to an experienced trader in my family or circle of friends to whom to turn (and it must be a person with whom you have a pre-existing relationship of trust, not, for example, a paid internet "mentor"), here is what I would have wanted someone to advise me:

 

First, read, the following in this order. Do no trading until you have read these books:

 

Nicolas Darvas, How I made 2,000,000 in the Stock Market

Edwin Lefevre, Reminiscences of a Stock Operator

William J. O'Neil, How to Make Money in Stocks (get the latest edition for the 100 pages of historical stock charts added to the beginning of the book)

 

Then, I would hope the next piece of advice would be for me to subscribe to Investor's Business Daily (either the print or the digital edition). Read the Big Picture column diligently. Study the stock charts in invesors corner. Pay attention to the stocks on the move. Do not trade until you have followed IBD for at least 6-8 weeks.

 

Then, once I had read those books and then diligently studied IBD on a daily basis for nearly two months, I would then alow myself to make my first stock purchase. But only if I agreed with myself to commit to only buying stocks on the IBD 100, and only buying them as they surpassed proper buy points, and if I committed to always cutting my losses at no more than 8% from that proper buy point. Also, I would never ever, average down. I would not add to a position unless the initial purchase already showed me a profit. And I would only buy any new position if, according to the IBD Big Picture, the market were in a confirmed rally. If the general market is in a correction, I would not initiate new longs.

 

It may not be what you want to hear, but that is exactly the advice I would wish to recieve if I were where you are at right now.

 

I wish you well,

 

Thales

[Dompie1985 10]

Hey thanks guys....

Thanks you guys for your reply's. I understand completely what your saying and I'm glad I heard what you had to say. Otherwise, I would've been out making mistakes and paying for them. I will read those books (On my 10 or so hour flight on Monday) and will now subscribe to the electronic news letter.

 

Yea, I'm in no hurry to throw away my money. Its probably a good time to save some money for backup and maybe play a little with penny socks along with my brother in law (who I would trust with anything.) I mean, I know quite a bit but probably not nearly enough to start investing thousands of dollars.

 

Whats a good virtual trading program with real-time info? kinda get used to what goes on in the market so I don't get murdered. :fight:

 

Looks like my strategy days start tomorrow!

 

Thanks a lot!!

Edited July 10, 2009 by Dompie1985