First let me start off with some financial advice. – (Mind you I am a lower junior accounting major so I do have some background in finance)
As a person who started trading stocks on Sept 2, 2016 and have made an exact gain of $1,154.39 to date, and I am still trending up. ( Just wanted to tell everyone because my ego wants to tell everyone.)
Now you are going to need a notebook so make sure you have one. Also make sure to download the Robin-hood app, it is the single greatest app in the world in my own opinion. So click Here and sign up. Plus when you sign up they do give you a free stock but the free stock is whack but its free so you should still sign up.
Corny proverb – You are always luckyeven when you think life is sucky.
I would like to say the key to trading stocks is first asking yourself if you are lucky. If not, don’t be discouraged you can still take this advice in stride and find out you are lucky.
(Note- Being lucky is just a mindset.)
Okay so now the next step is deciding what stocks do I pick.
First step, is to always see stocks as companies that will last for a long time. You never want to put your money in a company like blockbuster. Now, my rule is to pick companies in the growth sector as in companies that have to keep evolving with the times. Companies in the medical, logistics, technology, consumers services and biotechnology field are always the best bets that you can and should take.
(Note: If you don’t know anything about companies, stocks, industries, markets or any of that stuff. You can always learn on the go. Only thing you have to know now is how stocks gain value over time.)
Second step, is to make a list of all the companies you like and/or you can go to the list of stocks on NASDAQ. Then just pick the ones with letters you like and some at complete random. (By letters, I mean their ticker symbol)
(Note: My personal preference is to never buy name brand stock unless it’s actually worth it. Buy the company not the name.)
Third Step, now that you have a list, you can just put your money in the stocks and pray it works but that’s like playing the lotto. We don’t want that. What we want is to narrow down this list to only winners. So now with your list, make copies and have a group of people pick which ticker symbol they like and nothing else. This group can be people you think are lucky or they can just be your friends, strangers, co-workers, family even your boss. (Yes i have done that before.) Now rank each ticker symbol in picked most often or not at all.
(Note- Ticker symbols are the stocks)
Fourth Step, see how all these stocks are doing in the real life stock market. Check their list price, how they have been trending the past 5 years and check out their forecast. Now rank your list of ticker symbol in how well the actual stock is doing.
(Note- Forecast is what experts think how the stock is going to do in the future.)
Fifth Step, if the stock with the most popular ticker symbol is trending downward, then cross it off your lists. If the least popular is trending upward, well ding ding you got a winner my friend. Do this for each ticker symbol and by the end of this, you should have a new list of winning ticker symbols.
(Note – You only want stocks trending upwards and it can dip as much as it wants, the only thing that matters is that overall it keeps going up.)
Sixth Step, now that you have your winners. Don’t invest just yet. You want to make sure these winners are actually winners. So for about a month see how these stocks are doing. By the end of the month you are going to have some new winners and if you got the money buy them all. If you don’t, always buy the stock you think has the better ticker symbol or go with your gut.
(Note: You always want to invest in first place but if you can’t afford it look for the company that has the most potential to be in first place.)
Lastly, you did it, you finally picked stocks and winning stocks at that. Now you can check back often as you want or not even at all but always look for new stocks and never stop trying to find a winner.
(Remember- the key to long term wealth growth is to be good now and the best later never the other way around. Once you actually invested money, you should try and learn everything about the industry and see how your company stacks up. This is how you keep getting better. )
Last important note – Never fall in love with a stock but always be loyal in times of stress as in this could be your time to further your relationship. What this means? If a winning stocks been losing lately you should still try and buy more. But if its been losing for a while it’s time to get a new lover.
LAST LAST Important note – You always want to sell a stock at a loss rather than a gain. I rather lose $10 now then gain $20 now and watch the stock gain $100 the next day. It has happened to me more often than I would like to admit.
Oh yeah, for the people who don’t believe in luck. You can still follow this advice but instead just pick the stocks with great liquidity ratios because the more longer a company can stay working, the longer chance it has of growing into the next Berkshire Hathaway.
Here is some stocks that I recommend if you don’t want to do all that work.
CDXS, ANET, SHOP, ABMD, TPIC, PIRS, APTO, BRK.B, ATNX, ISRG, XPO, WUBA, MU, TSLA, MELI, WB, EXAS, SPLK, FAS, BABA, KO, STL, SOL, FSLR, FCAU
I do have to say though I have invested these companies and I am still invested in some of these companies.
All I have to say, I really would have been a millionaire right now if I didn’t quit putting money in stocks. This plan works, so please don’t let all of the rich old white people be the only one benefiting from stocks.