Newbie Do's & Don'ts

[Myst]

Dews.

Screen for plays that meet your criteria.......assuming you are at a level of skill that can identify criteria that meets your trading style and objectives. If not, research and learn before you part with your cash.

Newbies (especially those with limited funds......under 10k) should do themselves a favor and play only stocks that are valued less than they are worth. That way if they choose wrong, the odds of the play coming back to breakeven or higher are greater so the play can be held longer. This eliminates virtually ALL penny stocks.

Find a screening tool (there are several free ones on the web........do a google search for "stock screens") and search for quality stocks that are valued less than they are worth (and not necessarily "undervalued" stocks). I use VectorVest for stock screening and highly recommend it, though it isn't cheap. Pays for itself though, in my opinion. All my screens include the criteria "Stock Value > Stock Price".

Here's an example of a screen for stocks under $10 that are valued for more than the current price:



After the screen for the proper stock candidates is accomplished, a newbie should have a disciplined approach to trading the stocks he/she is interested in. I use the X_DEV system, which you can investigate by clicking the link under my signature if interested.

Good luck!