Basic stock trading for beginners

[jshouse]

Buy low, sell high.

I like the way you think.

[Backwoods101]

Reddit [emoji41]


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[WItoTX]

If anyone here is looking for advice. Google is your friend. Find a good forum to follow. I am on a couple penny stock forums myself. From there, you will find people who will inevitably post links to twitter and youtube accounts of folks they follow. Find those folks. See look at their historic posts and videos. How are their picks doing currently? Were they short plays or long holds? If the twitter/youtube accounts got a pick right, and you see the stock shot up, then dropped off, what was going on in the news at that time that would have caused this swing? I have found a lot of supposed "experts" don't tweet, or post videos, until after the stock has shot up, and then say "see I told you it would pop". I had to weed out a lot of people who did this.

That's my general process for finding stocks. THEN, once a stock is found, I research the company to decide what they have going on, what news have they made lately, check volumes, etc...

I am currently up about 120% for January, but I picked several losers along the way, and struggle to know when to get out.

[RiverRat1]

Up 120% That's great. You dealing with $1-$1,000 $1k-5k or larger account?
I'd be super impressed if dealing with a larger account.

It will be hard for new traders to understand at first but there are thousands of ways to trade. Each person needs to find their own niche.

Since we're talking penny plays a lot and gambling I'll assume most want to day trade. I look to see what the company is doing but it really doesn't matter if holding for a few days or less. It all boils down to what will make the stock move very soon. There are chart play breakouts (lots of different ways to play), momentum, upcoming events like earnings, a product launch, FDA decision, conference, a pump of some kind, theme (like other lithium stocks are up huge), great news PR.

Each one of those different ways can be traded a 100 ways. Take good press release. You can have a real time streaming news service and try to be the first to buy. Or you can see what's moving and check PR's. But you have to be selective and make sure the PR will generate enough hype/volume to keep the stock running because odds are you found it because it was already up and running.

It's best to start searching and watching. Never follow just one person. Never just buy what they're buying. More so if you have no idea what price they bought at. And always have a plan to sell.

[WItoTX]

I wish I started with like $15,000...but just fun money, started with $500. Just slowly letting it build. Been bleeding for three days now, was up 200% on Tuesday morning. My goal is to pay for my hunt this fall with stock money, and keep my $500 original investment going.

I basically did a bunch of get rich quick stocks (Loaded up on cannabis before the Georgia run off), and am slowly transitioning to longer plays. Completely agree with you, so many ways to trade, so many data points to look at, so many companies, no one person can ever cover all of them. Due Diligence on any of them is critical.

Now, can we can OZSC or MLFB to a dollar?!

[Jon B]

It's not a conspiracy to prevent you from trading.

This is untrue. I wouldn't call it a conspiracy but Robinhood absolutely shut down buying of several stocks yesterday morning. I had cash in my account and was the owner of one of the stocks in question. (AAL) RH posted a banner saying that the stock was unsupported. I will add that this has happened several times with stock that were delisted on the app. I was trying to figure out why it was tanking after a much better than expected earnings report. This was looked at by many including myself that some news had dropped or was dropping.

The only option we had was to sell or hold. I lost focus and sold. As did many others. Since the stock could not be purchased only sold, there was a surplus on the market driving share prices back down.

This is not a secret, They even sent an email about it. I am not trying to argue but it was absolutely wrong from a platform geared toward "democratizing" stock trading. I can post the email text if anyone doubts me.

In my opinion.....this shouldn't have happened at all but I can say with 100% certainty that had the banner read; this stock has been temporarily suspended I would not have sold. When the class action lawsuit is filed I will throw my name in the hat for sure.

[HogHunter34]

So is this all based on day trading? Or you guys buying into low priced equities & holding long term?
For the day traders how complicated does the capital gains taxation get? Do you do your own taxes?

[WCox88]

Is there a better option than Robinhood for penny stocks? I’m having a hard time finding a lot of the stocks mentioned in the penny stock tread when I search them on the app.


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[mrpetera]

This is untrue. Robinhood shut down buying of several stocks yesterday morning. Even posted a banner saying that the stick was unsupported. This is the exact process they take before they have delisted. They absolutely blocked the buying of several stocks and only allowed the selling of those specific stocks. They even sent an email about it. I am not trying to argue but it was absolutely wrong from a platform geared toward "democratizing" stock trading. It's not being made a secret and if you look it up you will find hundreds of articles about it.

Actually it was true, he was using eTrade not Robinhood.

You are bringing up a different issue which I’ll share my thinking. This is solely my opinion so it’s not worth much.

Robinhood made a decision to limit risk for themselves and their clients. I’d be careful with GME, there’s a reason why it’s being restricted by many forms to cash only. Look at their balance sheet compared to the current market cap. There are times when the market cap will exceed a balance sheet by a lot, but that’s normally due to some strong future opportunity. When I looked the other day I believe GMEs market cap was 16-19 Billion, their total assets before liabilities is 2.8 billion. Only time will reveal what happens, but I don’t see any big future opportunities in their plans, I only see hype from some guys on the internet.


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[Jon B]

Actually it was true, he was using eTrade not Robinhood.

You are bringing up a different issue which I’ll share my thinking. This is solely my opinion so it’s not worth much.

Robinhood made a decision to limit risk for themselves and their clients. I’d be careful with GME, there’s a reason why it’s being restricted by many forms to cash only. Look at their balance sheet compared to the current market cap. There are times when the market cap will exceed a balance sheet by a lot, but that’s normally due to some strong future opportunity. When I looked the other day I believe GMEs market cap was 16-19 Billion, their total assets before liabilities is 2.8 billion. Only time will reveal what happens, but I don’t see any big future opportunities in their plans, I only see hype from some guys on the internet.


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I agree.... The price of gme falsely inflated. My issue was with American airlines stock symbol AAL. This is a stock that I bought as a long-term hold for around $14 a share. All I am saying is that it was unethical to do what they did and block the availability thecbuy sell or trade of any stock for any period of time. As I said in my original post Robin Hood absolutely did block the buying and selling of several stocks yesterday morning and that is what I was referring to. I sincerely believe this was done to protect Robinhood not individual investors .My apologies for any confusion, but what Robinhood did yesterday was manipulate the market and it was no different than what the Reddit users have done.

[gingib]

Day trading is a LOSE LOSE. Invest and think long term.

I done very well the last 12 months on stocks

[BLee15]

If your asking for stock advise on her I would take everything you read with a grain of salt.
Do not buy penny stocks
Do not day trade
Don’t buy GameStop, AMC, or any of these robinhood hyped up stocks.
Sure you might make a quick buck but you will get burned at some point and since your asking about stock advise here I’d Imagine you probably won’t come back from a big hit.
Invest in a good mutual fund or long term holds.
Also, investing $500 for day trading and making 2-300 bucks is a waste of time IMO after short term capital gains.

[txhunter90]

I do have a question in general about stocks. I use TDameritrade and have only used them for a bit. Since early this year and have done great. My question is how I have it set up, is with a 401 and goes into it when I withdraw etc.

Not sure if I can set it up different or use a different website. But, have been looking and wanting to buy and sell and be able to use the money instead of going into a 401k.

[BlackoutRam2500]

I agree.... The price of gme falsely inflated. My issue was with American airlines stock symbol AAL. This is a stock that I bought as a long-term hold for around $14 a share. All I am saying is that it was unethical to do what they did and block the availability thecbuy sell or trade of any stock for any period of time. As I said in my original post Robin Hood absolutely did block the buying and selling of several stocks yesterday morning and that is what I was referring to. I sincerely believe this was done to protect Robinhood not individual investors .My apologies for any confusion, but what Robinhood did yesterday was manipulate the market and it was no different than what the Reddit users have done.

^^^^ this!


But also let me add a LOT of companies are trading at dangerously high multiples in relation to their assets and earnings... look at Apple and Tesla for example, yet when was the last time they were halted? The system is and has always been corrupt. Don't get me wrong I don't want to bring it down or anything crazy but I am surprised when people are surprised when certain shady practices that have been going on forever get a spotlight shown on them.

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[Codypatt1]

It’s fun and I enjoy the game. Just make sure you are using money you don’t mind loosing. Sometimes you get lucky. One of the first stocks I purchased was Wkhs at 1.32. It’s now over $30 and I’m hoping they end up winning the usps commercial electric vehicle contract this year. However, it’s not money in your pocket until you sell, it can go down just as fast as it went up.

Once a stock breaks out, I usually take out enough to cover my initial investment so I’m playing with “free” money