What To Invest In

There are several different types of investments, stock market, real estate, artwork, and there are many factors in determining where you should invest your funds.

Determining where you will invest begins with researching such things as, the various available types of investments, determining your risk tolerance, and determining your investment style – and your financial goals. The most liquid and diverse place to invest in is the stock market.

Stock Research Importance

If you were purchasing a new car, you would do quite a bit of research before making a final decision on your purchase. You would never purchase a car that you hadn't fully investigated and taken for a test drive. Similarly, investing in stocks works much the same way.

Learning about the stock market and the individual stocks in it takes a lot of time… time well spent of course. There are numerous books and websites on the topic, and you can even take college level courses on the topic – which is what stock brokers do.

Stock Research Shortcut

Does researching stocks have to be time consuming? With access to the Internet, you can actually research stocks, play the stock market with fake money to get a feel for how trading works and see if you can make money at it.

You can make pretend investments by searching for ‘Stock Market Games’ or ‘Stock Market Simulations.’ on any search engine. But how do you choose which stocks to "play with"? You can fake trade but you can't fake research. Or can you?

No you can't use fake research to trade stocks, but you can take a shortcut. Let someone else do the research for you. That's how financial analysts and consultants make their money. But rather than interview or research analysts you probably would rather spend your time researching stocks you can buy. A better shortcut is to use stock research already distilled into a list of the stocks that seem most promising based on the research already done by others.

Stock Watch Lists

Stock watch lists is what this website compiles for its members to refer to when they are buying and selling stocks. If you want to be an independent investor you will want to pull the trigger on your own trades and buy and sell according to your own preferences and tolerances for price movement.

Check out the watch lists in our member's area. Buy the stocks listed at the approximate time shown on the watch list and sell when the price rises to a point where you make the profit you desire, then sell the stock. For stock day traders this buying and selling can take place multiple times throughout the trading day, with the same stock or with different stocks. Financial planners don't recommend this type of investing because there is the danger of inexperienced traders losing money instead of making money.

If day trading stocks is too much risk for you then you should speak with a financial planner. Tell him or her your goals, and ask for their suggestions – this is after all what they do! A good financial planner can help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way.

For just a dollar you can try using our watch lists produced daily for each hour of the trading day to pick stocks you want to trade. You'll have time to "paper trade" (fake trade) using one of the simulators you can find as mentioned previously in this article. Quite quickly, and cheaply, you can see whether day trading stocks using our watch lists will work for you.

So You Want To Be A Rich Stock Trader

There are rich stock traders and there are traders who go bust. The difference between the two types is the rich traders pick winning stocks and the busted traders get stuck with too many losers. If you pick winning stocks you'll make more money, and improve your chances for not going bust.

Of course no one starts trading stocks to lose money. All stock traders see themselves growing wealthy to live a better life and help more people; their family or their fellow man. As mentioned at the beginning to make money in the stock market you (the future rich stock trader) must pick winning stocks. How?

Rich traders generally have an advantage that they capitalize on. They have a system or a service that identifies stocks that meet the criteria for their trading strategy of buy low and sell high. They concentrate only on the specific stocks that trade according to the pattern of their specific strategy.

Strategies For Picking Winning Stocks

The first criteria for a winning stock is that it has to be one that lots of other traders are interested in. Trading volume can be an indicator of this. More importantly the direction of change in volume should be going up. How do they find stocks that meet this first criteria? Usually successful traders use a service or a stock screener that identifies these stocks for them.

Next a stock with a high amount of interest (increasing volume) needs to have a price that is rising or at least anticipated to rise. There are various trading indicators that will signal this condition, on balance volume (OBV), dollar trading volume, moving average convergence & divergence (MACD) and others. Used in combination all of these indicators can be used to confirm a stocks candidacy for a winning trade.

Somewhat harder to identify is a stock with a good story or good news driving it's price. The reason why its called "news" is because nobody knew it before it was released (supposedly). So a good story is hard to anticipate. But as they say "success" leaves footprints. A stock's fundamentals (how much the company makes and at what cost) is a good way to measure and compare one stock with another to identify emerging good news.

After finding a stock with a high level of investor/trader interest, strong price, a good story then the only thing left to do is determine a good price "entry point" (when to buy) and an "exit point" (when to sell after making a profit). Rich traders buy when the price is on the way up (buy low) and after the anticipated rise in price takes place they sell before the price starts to drop (sell high).

Am I Too Late - How Do I Know The Opportunity Hasn't Already Passed?

There are a combination of indicators that can be used to identify stocks that are reaching a "top". And if the opportunity to capitalize on trading a particular stock has already passed so be it, let it go. As the price of a targeted stock dips in the future a new opportunity may present itself. There will always be another stock that will give you the opportunity to capitalize on its price move. Just identify that other stock quickly.

The best way to identify the next winning stock is to use analytics that are applied to the entire market each day. On a daily basis our service generates a watch list of stocks that meet the criteria spoken of in this article in addition to many other proprietary criteria. Membership to our service will give you statistics and analytics for many winning stocks in winning industries and sectors.

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Determine Where You Will Invest, Is It Easy Or Hard?