Comments on: Do’s and Don’ts When Buying Stocks

By: Bernardo

Bernardo — Mon, 18 Oct 2010 19:09:09 +0000

Johna, if you really want to make a deal out of the stockmarket. Find the book “Invest like a shark” or ask me to send it to you. You will be surprise by these investing techniques.

By: Joseph

Joseph — Fri, 06 Aug 2010 01:07:57 +0000

Nice! You’re really great in explaining things to layman or newbies like me. This sure will help me a lot in the future when I venture in stocks. More power!

By: Tyrone

Tyrone — Thu, 05 Aug 2010 15:29:33 +0000

Hi Joseph, when there is a great demand for a particular stock (“when others are buying”), you need to sell that particular stock if you hold it. This will be beneficial since by law of supply and demand, the stock price will tend to increase.

Conversely, when there is a great supply (“when others are selling”), it’s time for you to buy since again, by law of supply and demand, the stock price will tend to decrease.

“But only if the company is sound” means that you need to be careful of the particular stock that you are going to buy or sell as stated above. Some stocks are prone to manipulation. Therefore, it might send a wrong signal. Sample of this is if a company is in the brink of bankruptcy, stock price of that company tend to fall. In this case, it is obvious that you shouldn’t buy the stock of this company even though a lot are selling.

By: Joseph

Joseph — Thu, 05 Aug 2010 03:00:06 +0000

Hi Tyrone, maybe you can expound on this “Sell when others are buying, buy when others are selling (but only if the company is sound). ” Thanks!

By: Jonha @ Happiness

Jonha @ Happiness — Tue, 25 May 2010 03:53:51 +0000

Good for you you have such an indicator, haha. What about those who have none? You think I could try an rely on my cat instead? lol

By: Jonha @ Happiness

Jonha @ Happiness — Tue, 25 May 2010 03:52:25 +0000

This is pretty helpful. Just like you, I am doing all my homework and studying as much as I can about the companies and tips on investing. I figure it’s always safe to learn from those who have experienced it that’s why I’m here at MillionaireActs and I have been blog hopping lately to other finance tips blogs. Thanks again for the tips.

By: Darvin @ Recycling Christmas Card

Darvin @ Recycling Christmas Card — Tue, 24 Nov 2009 03:22:36 +0000

This is indeed sound advice. Too many people gave the reigns over to their brokers prior to the “recession”. DOn’t get me wrong, I still lost money too, but I don’t have any doubts/regrets about what might have been…

By: Sandesh

Sandesh — Sat, 21 Nov 2009 04:06:59 +0000

But always it’s the individual who has to decide. Anyways stock market is the easiest and the most risky to make money. It takes few years before you learn to master the stock market, but still its not guaranteed.

By: Gabe | freebloghelp.com

Gabe | freebloghelp.com — Fri, 20 Nov 2009 15:23:56 +0000

I used to love buying stocks but it required a lot of time to do the right research. Now that my time is spread thinner, I’m a mutual fund guy these days.

By: dlysen

dlysen — Fri, 20 Nov 2009 01:23:24 +0000

Buying stocks are risky in recession period, you have to be smart to perform your action like being intellectually and emotionally fit.

By: shasank bhandari

shasank bhandari — Thu, 19 Nov 2009 19:22:49 +0000

Nice one!

Zen Foo’s Note:
Rule 1. Capital preservation
Rule 2. Don’t forget about first one.

I want to add 1 more
Rule 3: Make your Capital resources with you anytime to execute the trade as an when reqd.

By: Financial Samurai

Financial Samurai — Thu, 19 Nov 2009 13:25:35 +0000

I really believe technical analysis is a bunch of kim chee baloney Engie, but that’s just my opinion

My wife has a pet rabbit, and every time we come home to an empty tray of food, we find that to be our bullish indicator. Then we buy buy buy the next day! That is my technical bunny indicator.

Always input price limits folks!!

By: Tyrone

Tyrone — Thu, 19 Nov 2009 07:13:06 +0000

Hi Engle, thanks a lot for sharing your tips on how you trade stocks. I really appreciate you for giving time to make such comment here.

By: engle

engle — Thu, 19 Nov 2009 05:14:53 +0000

I started stock investing about a year now. I opened an account on a Online Stock Broker. At first, I really invest my time reading many kinds of books about stock investing. Until this time, I still find time reading any books about stock. I started from small capital, and luckily compounded almost a month because of gain. So far, even the economy is in recession or not, I can say I made almost 100% of my investment. My technique, I study the chart, when there is any reversal pattern, I look for the news of that company, and if there’s any good news about the company, I go to stock quote(you can see the offer and bid of specific stock). On this I can see who is really taking over. If the Bids is more faster to execute with big volume, I can conclude that it is a bearish(sellers is taking over) and not to go on this stock. But if offer is executed faster with big volume, I can conclude that It is a bullish stock and I go for the stock. But If in any case, I buy the stock but it didn’t go on my expectation, I set a stop loss percentage that whenever that loss was reached, I will sell that stock and go for another one again.
So far, my technique gave me a good return. But take note that this technique is applicable if you have time to see the stockmarket daily from 9:00 to 12:10 in the morning.
Hope this gave you an idea guys!

By: Tyrone

Tyrone — Thu, 19 Nov 2009 04:46:42 +0000

If I remembered it right, you borrowed those two rules from the world’s greatest investor – Warren Buffett.