I started trading stocks in 2000 around the time of the first tech boom. They were exciting times. I started with $1000 and made over $13 000 in 4 months, by investing in tech stocks.
Those times are over. I ended up losing 95% of my portfolio; however, I still had the original money I put in, because I reinvested into a company that kept losing money. They tried to go to far, too fast.
If your looking to invest for the long term, look for stable profitable companies, with little or no debt, like Metalore Resources (MET.TO). Metalore Resources is a very stable and profitable company. I highly recommend it. They are trading around $6.00 down from what I bought it at which was $7.75, and I don't expect it to go any lower. Buy 500 to 1000 shares, and hang on to it. Sell at about $7.50 to $8.00.
With the high Canadian dollar, and the continued growth of the Canadian economy, now is the time to invest. Stay with Canadian companies. The American economy is not going to get better anytime soon, but the Canadians are ahead of the game, thanks to Stephen Harper.
American companies, though are a very good option; however, I would go with larger companies that have proven themselves. Look at the mining, and banking sectors. They seem to be the most stable right now. Technology continues to improve, advance and grow; however, it appears to be slow. After being stung by the collapse of the tech market in the early part of the last decade, I have learned to be wary of technology companies.
In an attempt to get back into the stock market, I have spent allot of time researching and playing around with virtual portfolio's. Over the last month I have managed to construct several online web pages to let me query, create virtual portfolio's, and sell off my virtual stocks.
A strategy that seems to be working for me is to look at stocks that have a current stock price that is about 4 to 6 cents or higher than the opening price, and companies that have posted recent news.
When I have found a company that meets my criteria, I watch and see what it is doing. Should the stock go down about 3 cents on the dollar, I will then post it to my virtual portfolio at about 2500 to 3000 shares. Usually what happens is that the stock will go up again, and at that point you have made your profit.
In the old days I would wait until the end of the day, to ensure that the stock will sell at about the price I saw it for, and I would buy when the market opens. Now, I think it is best to buy and sell throughout the day. If the stock reaches your target price, you need to sell right then and there. If you don't, the stock will most likely go down, and you may have to wait for a very long time to sell.
If you follow this technique of buy and selling throughout the day on this criteria, you should make about $15 to $60 or more. Don't get greedy, and hang on to the stock. Smaller companies will typically fluctuate about 3 to 5 cents a day. Large companies like companies over $30 a share, will usually fluctuate about 25 cents or more. Unless, you are rich, your not going there. The goal is to accumulate your money, start small and go big.
Keep watching my blog, Stock Market Tips. I will be making my application public soon. It will be very easy to use. To add an item to your portfolio, all you need is to enter the symbol and the number of shares, then click save. A special feature I am considering is to display sales that have made a certain amount of profit, from every one's portfolio.
Here is a sample of stocks that I have posted and sold from my online application;
Look for companies that meet with my criteria. It is a starting point, but not the be all and end all. There are many other strategies that can be employed when buying stock. Like always, the stock market is a gamble; however, if you invest wisely, and make your choices based on fact, you should always come out ahead.
