Novice investor - advice please

rodd · Joined: 21 Jun 2007 Posts: 1

Hi,

I’m new to the stock market. I have only done a little research as of yet. I am not much of a book person, I think the best way for me to learn is through ACTUAL practice on the stock market (with only small amounts of money). If you could summarize all your experience and knowledge, what are some valuable tips you could give this novice investor?

thanks

lloyd · Joined: 21 Jun 2007 Posts: 1

Hi rodd

I’ve been trading in US, European and Australian Markets for about 17 years now. There are seven basic tips which I teach all my clients. See my blog for details at - http://stocks.blogfreehere.com/7-stock-market-tips-you-can-t-live.html.

Best of luck!

BigBen · Joined: 09 Jul 2007 Posts: 4

I can easily recall when time comes to investing. i did what others did, but not long after that i find the lesson. i trade stock sometimes but i'm incline toward long-term investment since the lesson. it offer me stability, compounded return and passive investing (i have day job to take care).

i'll try to summarize. i only buy high quality stock. it doesn't mean blue chip stock, but stock that consistently outperform. for quantitative, i very much depend on key financial ratio like earnings per share growth rate, return on equity & debt to equity ratio. you can refer this method in this website:
http://www.stock-investment-made-easy.com/good-stock-pick.html

the i'll calculate its intrinsic value using net present value methods as in:
http://www.stock-investment-made-easy.com/calculate-intrinsic-value.html

to lower my stock investment risk, i'll only buy the stock if the price is within its margin of safety. to me, that is the fair value of the stock:
http://www.stock-investment-made-easy.com/margin-of-safety.html

other than quantitative method as above, i also ensure that i'm not forget the qualitative part. this is important as every stock represent a company with businesses. it is a good practice to analyze how business is doing than what market is doing.
http://www.stock-investment-made-easy.com/analyzing-company.html

hopes you find them helpful...
Wink