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Five Huge Mistakes That Beginners Make

Five Huge Mistakes That Beginners Make

  1. Don’t buy stocks that are hitting 52- week lows.(There is no such thing as a “safe stock.”)
  2. Don’t trade penny stocks.(A stock that trades under $ 5.) 
  3. Don’t short stocks.
  4. Don’t trade on margin.
  5. Don’t trade other people’s ideas. 

372

2.65K reads

MORE IDEAS ON THIS

Index

Index

  • An index is simply a collection (or "basket") of stocks. Let's say that we take the 500 U.S. stocks with the largest market caps and toss them into a big basket. That basket is called the S& P 500. 
  • There's the Dow Jone...

327

2.82K reads

What Is A Stock?

What Is A Stock?

  • A stock is a share of ownership in a company.

Ex: When I buy 100 shares of McDonald's, I become a partial owner of the company. I become a "shareholder."

  • Stocks move based on the laws of supply and demand. If a lot of people want to buy a stock, the sh...

324

3.75K reads

Bid and Offer Price

Bid and Offer Price

  • As an individual, you cannot trade directly on a stock exchange. For that you will need a "broker" or "brokerage account." A broker is simply a middleman who gives people access to a stock exchange. 
  • Every stock has a bid price and an offer (or "ask") price.
  • ...

356

3.13K reads

WARREN BUFFETT

"The single most important decision in evaluating a business is pricing power.

If you've got the power to raise prices without losing business to a competitor, you've got a very good business.

WARREN BUFFETT

346

2.36K reads


Investors Vs Traders

Investors Vs Traders

  • Some people like to buy stocks and hold them for many years. We call them "investors."
  • Other people like to buy and sell stocks more quickly, maybe holding them for only an hour, a day, a week, or a month. We call these people "traders." 

329

3.37K reads

Creating Passive Income with Dividend Stocks

Creating Passive Income with Dividend Stocks

  • A dividend stock will usually make a cash payment into your brokerage account every 3 months. That cash payment is called a dividend. 
  • Investing in dividend stocks is one of the best ways to build wealth. The reason it works so well is that you can take the cash from...

351

2.8K reads

GEORGE SOROS

 "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." 

GEORGE SOROS

343

2.36K reads

How to Get Started with Stocks?

How to Get Started with Stocks?

Stocks are usually bought and sold on what are called "stock exchanges." A stock exchange is simply a place where buyers and sellers show up and exchange their shares for money, or their money for shares. 

  • The NYSE is best known for its blue chip (high- quality) stocks...

328

3.32K reads

How to Pick Stocks like Warren Buffett

How to Pick Stocks like Warren Buffett

  • Just copy him. Go here and download his letter for the most recent year. Scroll down and you will see a list of every stock that Buffett owns.
  • An even easier route might be to just buy some B- shares of Berkshire Ha...

381

2.58K reads

The World’s Greatest Opportunity Machine

The World’s Greatest Opportunity Machine

  • 75% of new traders quit within the first 3 months.
  • 90% of new traders quit within the first 6 months.
  • If you can stick around long enough and keep learning, you will be successful at this game.
  • Never forget that. Anyo...

365

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Important Of Stocks For Companies

Important Of Stocks For Companies

A low or falling stock price will make it difficult for the company to attract top talent. In this way, stocks don't just reflect a company's current prospects, but also play a role in determining a company's future prospects. A company with a high or rising stock price can use that stock to buy ...

316

2.15K reads

A Janitor - $ 8 Million

A Janitor - $ 8 Million

  • Ronald Read, a janitor lived a simple life and funneled much of his earnings into dividend stocks. When he died at the age of 92, he left behind an $ 8 million fortune, all in dividend stocks. 
  • You don't need to have a high salary to become a millionaire. You just need to spe...

351

2.57K reads

Keep Your Losses Manageable

Keep Your Losses Manageable

  • Never buy a stock just because it is "cheap" or has a low P/ E. (Price-Earning Ratio)
  • The key to making a lot of money is not losing a lot of money in the process. 
  • Keep your losses small and manageable, especially while you are still in the learning phase. It’s OK to...

335

2.32K reads

Insider Secrets of the Stock Market

Insider Secrets of the Stock Market

  • If you are looking for a good long- term investment, buy a company that has the highest sales in its industry.
  • Once a business sells more than any other company in its industry, it becomes very difficult to compete with.
  • There's no substitute for being #1 in ...

372

2.4K reads

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"A good idea should be like a girl's skirt; long enough to cover the subject and short enough to create interest."

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The big 5 beginner investing mistakes

  1. Don’t buy stocks that are hitting 52-week lows. You are most likely catching a falling knife. 
  2. Don’t trade penny stocks. They are mostly scams.
  3. Don’t short stocks. You will probably get burned. 
  4. Don’t trade on margin. Don't borrow to buy stocks. You may lose your hous...

Growth Stocks

Great companies that are rapidly growing will always trade at high P/E's (Facebook, Amazon etc). Value investors will always tell you to stay away from companies with high P/E's. Ignore them. 

Matthew's advice: buy growth stocks that are hitting new 52-week highs, or even all-time n...

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