What is the best way to buy a stock? It's a rather long article I typed up tonight (for stock market investors), but if you're NEW to trading, it might be worth your time to spend the next few minutes reading.
Well, if you believe that a company has a good plan, a good vision for the future, and they're actively working hard to grow the company, then here's what you should do:
(1) Watch the stock for a while. A day. A week. A month. A year. Whatever you feel comfortable with. Just watch it.
(2) Read what the news is saying about the stock. BE CAREFUL here. These days a lot of :( articles are out there floating around. Dim views from competitors... also there are people WITHIN the company who may give bad news PURPOSEFULLY just to scare investors and drive the price down. Dishonest? Yes. So you have to be careful and "weigh" what you read.
(3) Once you make a decision to BUY, then BUY and hold on! This thing about "buy and sell and watch candles and rods and lightening bolts and (on and on and on)" is basically for people who are out to make fast money (in my opinion). I'm not criticizing anyone who tries to day-trade. Most people do NOT do well at day trading. There are just too many variables AND too many insiders WHO KNOW MORE than the average Joe Trader.
The sad thing about intraday trading is (a.) it wastes A LOT of time and (b.) it CAN BE verrrry stressful. Buying in and out can be (can be) a very foolish thing to do. Someone who sells intraday can miss a quick upswing. This is where #4 comes in.
(4) Be patient. When you BUY a stock and two days later you've lost $2,000 in your account, DON'T PANIC. Remember, you made a commitment to BUY shares in this company that you truly believe is going to do quite well in the long run, so you MUST be patient. Force yourself, if you must, to turn off your computer and take a walk, go out and breathe the fresh air, visit a local coffee house or cafe'... do something but just get away from the computer. It's the people who GO LONG and STAND STRONG who are going to come out in the long run.
Closing comments:
I read this article recently that someone wrote who has (apparently) been trading stocks for a very long time. And this is what he said ...
"If you want to make money in the stock market, buy your stock for the long term and don't try to short."
That's it! A man with years of experience and his advice is SO SIMPLE. Just BUY and walk away. One good piece of advice is to make sure you BUY with money you "can" potentially afford to lose. Don't take a loan out at the bank, or borrow $10,000 from a friend to buy stocks. Hey, it's just advice. You can put every last cent you own in the stock market but it's just not wise to borrow someone else's money. What if the stock goes flat and you don't have the money to repay them? Just saying, be smart.
And finally, stay humble. Remember all those people who bought in Apple at $10 bucks and the stock soared to over $700? What if they sold when it topped $700? H.E.L.L.O. Can you say "retire"? There's a lot of responsibility with stock ownership if you "hit it big" like the Apple pickers did. Don't let it go to your head if you hit it big. You could lose it as fast as you got it if you're not thinking straight.
So how about this company called Medi-Swipe. I just happened to buy in when it was really low, but I'm not sending postcards from Tahiti to any friends yet. In my humble opinion, they have a good plan to help ordinary people like you and me enjoy a better buying experience. They've targeted the medical community (primarily) and we all know that with baby boomers aging and medical costs rising that this stock has some REAL potential to go big.
If you have it, take a few hundred, or a few thousand, and consider a BUY (I think anywhere under .10 cents is very good) but even if you miss that don't fret over it, just BUY wherever you can (and remember to BUY what you can afford!). Then just get out, stretch, breathe deep, and feel good about your purchase, whether you hit it big, or whether you go out flat.
The most important thing is that you made a decision and you stood by it, and that's worth more than the million or the dollar you walked away with.
Everything is my humble opinion and I wish the best for all MWIP investors.
HOLD MWIP AND GO LONG!
