Your Questions About Investing In Stocks

Ken asks…

In finance class we are investing in stocks. What are some of the most promising stocks for the next 16 weeks?

This is by no means a real investment, but it is a competition however, and our teacher said we could use our resources to research stocks. So I figured I would try and get the opinions of some possible professionals… Thank you for your suggestions!

Justin answers:

Id go with AT&T personally, its priced relatively low for the yr, the moving averages indicate it should go up at least temporarily, and because they just gave out the dividend its down even more to make up for that, plus it should have another dividend payment in that 16 wk period, and thats a guaranteed 1.5% increase if your teacher is counting dividends, id say it’d be up 2%-8% actual price depending on a few factors and if your teacher counts dividends after the 16 wks

James asks…

What are some statistics to look for when investing in stocks?

I’m looking for some stocks that I can invest in long term. What are some key stats to look for? Such as EPS, P/E ratio, beta, etc. What are the most valuable factors and good numbers to look for?

Justin answers:

The main thing is that you want to look at where a stock is going in the future, not so much what it’s done in the past. What does the future hold for the company going forward is one of the most important stats.

EPS (earnings per share) is a huge factor but it also must be compared with how much debt the company has on its balance sheets.

Watch insider buying as well, if a CEO for example is buying shares of the company for his own personal account, that could be a good signal.

PEG is also important this is the price to earnings growth and is determined by multiplying the analysts estimates for next year by the projected five year growth rate.

In Yahoo! Finance, the stock quotes have a link of the left hand side to “key statistics” and they include some of the important statistics when examining a stock. For example, the link below shows some of the key stats for Chesapeake Energy Corporation (CHK)

Robert asks…

How or where do I go to start investing in stocks?

I want to start investing, even if wont get me big buck at least a couple hundred.

Justin answers:

An introductory book like _Stock Markets for Dummies_ is a good place to start. This will give you a basic explanation of most things there are to know about the mechanics of stock investing including useful websites to surf.

Investors Business Daily (IBD) is a solid daily resource (and its complement, ). It’s a better newspaper than the Wall Street Journal and it is built around a particular approach to trading. You could read _How to Make Money in Stocks_ by William O’Neil too–he’s the founder of IBD.

Search your local library for other books on stock investing. Try to absorb as much knowledge and understanding as you can.

After you have extensively researched and gained a solid foundation/education then look to open a brokerage account and paper trade–this is trading with play money before you put real capital at risk. You should do extensively before you eventually place your first trade live. Your early live trades should be with a very small position size. Only increase position size when you have done well to limit losses when the market has turned against you.

Joseph asks…

How much should you start out with for investing in stocks?

I want to start an Ameritrade account or one of the other brands of online investing. What’s a good amount to get started?

Justin answers:

You really don’t need that much money. $500 is plenty to get involved. But you have to be wary of the fees of buying and selling the stocks. No Load (no fees) mutual funds are still good despite the problems with them. But you have to do a lot of research watch a lot of business progams before investing in anything to see what the “experts” think. CNBC, Bloomberg and Fox business block saturdays are excellent for picking information. One place I recommend for starters is no risk all play money but the stocks are real. And its free to enter.

As far as this goes its more of a question an answer for basic use. The poster needs to start reading these questions before babbling about this site. The question here has NO USE for the site you recommend.

Johnny it may be $4 to buy but nearly $15 to sell. Better options than that out there.

Richard asks…

What’s the best way to start investing in stocks without much money?

Are penny stocks any good to get into? Do I need a broker?

Justin answers:

For a person without a LOT of experience/knowledge in/of the stock market, penny stock are the WORST way. The best way is a well diversified index mutual fund, Schwab has a $100 minimum on theirs.

Michael asks…

How does one go about investing in stocks?

Is it a smart thing to do?
Do you profit from investing?
This question may be silly to some, but Im only 22 and Im curious to know about investing.

Justin answers:

You need to open a share dealing account with your bank but I would reccomend that you wait for the market to sort itself out. Wait for a couple of months and then invest because at the moment every day companies all over the world are going bust.

George asks…

Should I start investing in stocks now or later?

Due to troubles with markets everywhere, I am faced pondering about the question “Should I start investing now or later?” I am fairly young, meaning I have a lot of time and can handle high risk, and understand the historic growth rate of the economy, but was wondering if I should wait until the problem in Europe is resolved, or start investing now? Or are there other problems in the world that I should wait for to be resolved?

Justin answers:

The fear is factored into the price of stocks. If you wait until everything is just fine and dandy, then stocks will be overpriced. If you get in while everyone is afraid to buy, you can get some bargains. You get paid for risk, but you can lose everything. Thats why you’ve got to find solid companies that can whether storms. If you’re looking at Europe, look at Unilever (UL) although its price is not so cheap right now. TEsco (TSCDY) in the UK is pretty damn beaten up and Warren Buffet’s got a whole hell of a lot of it.

Donald asks…

how to start investing in stocks?

i want to start investing in stocks. i don’t know how to do it. should i first get a demat account? what to do after getting that account? i have a pan card.

Justin answers:

This is probably one of the most common questions I hear every day. People always ask me 1 of 2 things. How do I get started in investing? Or, how much should I start with?

To get started in investing, the best advice I can give you is EDUCATE YOURSELF before you do anything. I’m not saying you have to be a wiz to start, but don’t just jump in blind. That’s the express way to the poor house. So I suggest you learn the basics and don’t get ahead of yourself by letting greed go to your head.
There are various ways to educate yourself as well. Read books, attend seminars, pay for classes, and get a mentor! Just do whatever you need to do to learn more. Even though I’ve been doing this for more than 5 years, I still read every day and study new strategies, chart patterns and so on.

Second, don’t get discouraged when you first start investing. I say this because you will make mistakes. Sometimes costly ones to. I made mine. You will make yours. It’s like driving a standard car for the first time. Everyone stalls out. Even if your confident and know what you’re doing by the book, you don’t have the “feel” for it yet and so you will stall. No and’s, if’s, or buts’ about it.
Again, several ways to get around it, but it’s not going to be free. You have basically 2 choices, and I tell this to all the people whom I manage accounts for: you can either face it head on or take the knocks that are coming to you, or, you can pay someone like me to help guide you through the learning curve so the knocks won’t be so hard. Either way you look at it, you’re going to pay a price. In investing, there are 2 terms that investors use: “the dumb money” and “the smart money”. Dumb money is the crowd of investors who are new or don’t know what they are doing yet. The smart money is the investors that take the money away from the dumb money. Which one are you? Or where do you want your money to be?

For the second question, how much you should start with. Well that depends heavily on your financial situation. Although the more the better. For anything less than a $3000 start up, I suggest IRA’s, CD’s, BONDS, or SAVING CASH. Why at least $3000 well its simple, without at least that much in your account, it will be difficult to make money in a down market. Yes, there are ways to make tons of cash when the market is crashing. In fact, it can easier and faster to do than making money in an up market. But I won’t get into that here.

Anyway, if you don’t have money and still would like to try, then I highly recommend paper trading. Why? Well its good practice for when you do get money. I used to paper trade just for the practice. See how good my decision making skills are. Which brings us back to question one, and what you are doing right now, LEARNING! But remember, it’s not going to be free and it will cost you whether you pay for the education or you learn the hard way. Either way, just like Nike says, “Just do it”

Much Aloha,
Christian Nago – CEO & Chief Investment Officer

William asks…

I want to start investing in stocks please help?

I’m 16 and when I get a couple thousand dollars I want to invest in stocks. I have little to no idea what to do with stocks so can someone explain the basics or recommend books about it would be really appreciated. Thanks in advance

Justin answers:

In North America you must be 18 years of age to open a brokerage account. You can have a parent open a custodian account for you using your social security number and when you turn 18 the assets in the account can be moved to an account in your name

Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.

Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.
Here is some reading material that can get you started in the right direction,
Beating the Street by Peter Lynch
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
Common Stocks, Uncommon Profits, by Philip A. Fisher
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
The Interpretation of Financial Statements by Benjamin Graham
The Lazy Person’s Guide to Investing by Paul B. Farrell
The Warren Buffett Way by Robert Hagstrom
Trading for a Living, by Alexander Elder
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O’Shaunessey
You Can Be a Stock Market Genius by Joel Greenblatt
Your Money and Your Brain by Jason Zweig

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. ( ,

Other website that can provide instructions and help with procedures and terminology are Investopedia –
Visit some of the more professional websites like Zacks Research – Smart Money – Schaeffer’s Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it. Or you can meet others who are trading at

Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.

And when you think you want to invest/trade, try some paper trading to test your skills without spending you money and/or

You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest.

Good luck on your journey, study hard and you’ll invest well

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Your Questions About Summary Of Stock Market Today

Steven asks…

What do I need to know for trading stocks?

I want to start trading stocks to make money for college. What are some essential things to know about stocks?

Justin answers:


Stock trading is all guessing. There are no sure-fire bets, especially in today’s market. I started trading for real in Oct. 2008 with $500.

Make sure you research the company BEFORE you invest, and do weekly checkups to see if anything major has happened or changed in the company.

My advice is that, before you play with real money, practice with virtual money. Go to and set up a free account. This is how I got used to investing and learned a lot. This is the only risk free type of investing, the type that isn’t real. Play around and experiment for a few months before you risk your hard earned money.

Also, listen to CNBC or other business network. They provide you all the relevant news about the market.

On stocks, do a few Google searches to learn about support, resistance, Beta, outstanding shares, authorized shares, forward and reverse splits, dividends, P/E ratio, as well as ETFs, commodities and their effect on stocks, and how to read company financial summaries. is a good resource for smaller companies. Your online investment broker website will provide you with quotes, company news, and company information for larger companies.

Create an account in Google Finance or Yahoo Finance and read the message boards about your stock to get an investor sentiment.

Check out for free technical analysis of stocks.

The biggest thing about stocks is that they are unpredictable. Good companies have bad stocks and vice versa. Never act on the recommendation of a website (especially those free stock picks sites), analyst, or friend without doing your due diligence (DD).

You will lose money, make no mistake. Don’t be afraid to sell at a loss.

Joseph asks…

Where can I check past stock market prices?

Is there a website or something that will give me past stockmarket prices?

Justin answers:

Yes, there are several you can check.

A personal favorite is:
but you can also get such data at or

Let’s go to as an example.
When you get there, you can see a “Market Summary”.
On it is a chart of one of the indexes: Dow, NASDAQ, or S&P500.
These indices (plural of index) are sets of stocks traded publicly. While they are not the same as “the stock market”, they reflect what all stocks combined are doing, rising and falling. When people speak of “The market” they are often referring to the Dow index. Less often, the S&P. Almost never the NASDAQ. It’s just tradition. Good value can be found in any of them and outside all three.

On the chart you’ll see a line graph going up, down, sideways, or a combination. The farthest right point of the line is it’s current value. Points of the line to the left go further and further into the past. When you first get to the web site, it’s usually today’s market moves or the most recent day if the market is closed.

The price of Oil and Gold are under the indices, if that’s of interest.

Click any of the indices’ names and it will open a page for that index with the same chart on the right, but now you can change how far back in time you can look. Under the chart you can click “5y” to see what the Dow, NASDAQ, or S&P500 has done over the past 5 years.

That answers your question, but you may also be interested in specific stocks.
In the upper left corner is a field labeled “Get Quotes”
You type in the “ticker” (letter code for a company) of the stock that interests you and click “Get Quotes”.
A web page similar to the index one comes up that concerns that one stock and you can look at the chart on the right for whatever timespan you choose.

Don’t know the ticker for the stock you’re curious about?
Use a “Stock Symbol Lookup” page like:

You can find others using a search engine like Yahoo or Google by searching for “Stock Symbol Lookup”.

With that ticker plugged into “Get Quote” you can follow the ups and downs of any publicly traded company.

You may be surprised at some of the companies that aren’t public! (Little Debbie, Trader Joe’s, to name two.)

Michael asks…

Corporate profits are an an all time high, sock market recovered, why would republicans change anything?

They have everything now that their consitutency wants. Those same suckers who vote for them think they care about unemployment? Just like they made abortion illegal and stopped the illegal immigrants very time they got into office?
Why do rich republicans care about unemployment? It means nothing to them.

Justin answers:

Well I think what you have provided shows great evidence of the greatest lie Democrats tell: That they dislike large corporations, and that Republicans want poor people to suffer and die horrible deaths.

After 2001 when the stock market took a hit, Republicans took steps to ensure that people who were unemployed were hired again. They passed laws and wrote regulations that encouraged growth via hiring. In 2008 when the stock market took a hit, Democrats took steps to ensure that wealthy people stayed wealthy, that no large corporation would fail, but said “screw the little guy”.

Today, Obama says the economy is doing fine because him and his rich friends are making money in the stock market. Republicans point out that its not fine because unemployment is high.

Democrats like to keep the rich rich.
Republicans like to make policies that encourage company growth and hiring.

Charles asks…

Is microsoft a good buy now that they struck a deal with Yahoo?

I read in the WSJ today that yahoo will now be using msft’s bing serach engine. Also, the fact that microsoft is a blue chip, that makes it seem like an even better deal. Personally, i like AAPL more, but i think microsoft is a better buy in terms of its stock. Especially since Yahoo has 20% of the market. Bing will certainly rise in profit. no? Any feedback?

Justin answers:

Well i would say yes. Reason? Because i feel Yahoo has lost the balls to defend the ground which they them selves created. They are too afraid of google. MSFT is the only company right now which could help defend yahoo agains the big bro Google.
Check out to have a 200 words summary of the deal.

Chris asks…

How would you invest $1,000,000 in order to make the most money in one year?

I’m working on a school project, and I’m looking for good ways to invest money. For the assignment, we are hypothetically given $1,000,000 and only one year to make a profit from it. There are a few rules…
-We cannot invest it all in one place.
-We can’t just place it all in the bank to collect interest.
-No investing in anything illegal (I know I fun :p)

I’d also like to get your opinion on some ideas I already have, and I need help elaborating on some that I don’t know much about. I’m definitely thinking of buying a bunch of different stocks, such as Disney, Research in Motion, Target, Google, and a few others. I’m also probably going to purchase a CD. Any tips on either stocks or CDs? Remember I only have one year to collect any profit from my investments. Also, everything doesn’t have to be real (i.e. how much a certain stock went up), but it DOES have to be realistic and based on influential information. Oh & I just heard about T-Bills, can anyone explain?
Creative answers are acceptable too…one of my friends said they invested in a mining project that produced tons of precious metals and earned him millions.

Also, when I said “realistic and influential information” I meant that there just has to be proof that what we say happened could in fact happen. For example, if I say the price of the Disney stock went up a certain amount, I would just have to back that up. So I could say they released a new cruise ship that really brought attention and rave reviews to their cruise line or something like that.

Thanks again 🙂
oops…I don’t think I was as clear as I could have been on the time limit we have. We are given a year as the maximum amount of time to hypothetically invest the money, but we only have a few days to write the paper and hand in the assignment. That’s where the made up part comes in… we don’t really have a year to keep track of stocks and all that good stuff. lol sorry…I was running out of character space. Everything so far is really great though…I’m just going to play off of that.

Justin answers:

Let me give u something to work with

today, a “good” CD rate would be around 5% average, thanks to increasing interest rates set by the U.S. Gov’t

let that be ur benchmark; in other words, you should try to make above 5% of your principal (obviously, the more the better)

so 1) invest a small portion in the highest current CD rate you can find… There are other similar alternatives, but everything has its pros and cons… I e CDs are taxable; but are insured (up to 100grand, i believe)
2) now find something with a better rate (when it comes to investing, theres usually an inverse relationship between risk and gain)… So look at relatively cheap stocks with a good chance of massive growth (check msn money)

as a summary and as an example, you can do this:
1) put about 20-50% in a CD (online savings accts. Tend to be higher, and are secure)
2) spread the rest across medium to high risk stocks, across Vanguard indexes, bonds/money markets with great rates, mutual funds
3) and if you dare, speculate on penny stocks or short over-priced stocks

good luck
use yahoo finance for “headlines” (current events that may impact the earnings of the company)

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Is Investing in Mutual Money a Great Idea

Those who are new in the area of investment usually have the exact same query, ‘Where to invest’. In layman conditions, the answer to this question would be a location where you can get maximum returns via minimal danger element. Generally there are 3 unique types of investment, shares, mutual finds and money equivalents. In the sluggish US economy, everybody is looking for ways to boost their earnings sources. Investment performs an important role in boosting the earnings resources of most individuals as it is a field via which you can get massive returns by investing a little quantity of money. Have a look at the ways in which mutual funds are a much better way of earning money and leading a financial debt totally free lifestyle.

The benefits of investing in mutual money

A mutual fund brings in money from thousands of traders in order to construct a strong portfolio of real estate securities, bonds, stocks and so on. Each investor will get a share of the returns that they make via investing in the mutual funds. Have a appear at the factors why it is a great idea to invest in mutual money than in shares and bonds.

You can diversify your portfolio through mutual funds: Most mutual funds will only require reasonable investments ranging from a few hundred to thousand bucks and assures that investor to produce a solid portfolio that can be easily diversified. This could not be done on their own.

You can commit in various stock funds: As mutual money pools in money from various companies, you can invest in shares of effective businesses, in sector money, that focus on a particular sector this kind of as health treatment. This will allow you to diversify your portfolio amongst numerous businesses and reduce danger.

You can also invest in numerous bond money: There are numerous kinds of bonds that you can invest your money in. If you would like to go for secure investments, you can go for government bond funds and if you want to embrace danger, you can also attempt higher-yield bonds.

Before buying a particular mutual fund, you should focus on checking the risk factor concerned in the investing. Consider the decision only if you believe you can tolerate the swings of the mutual fund marketplace.

Get to know about some other kinds of investment

The two other kinds of investments are stocks and cash equivalents. You should be aware that investment in the stock market is a dangerous one and it needs lot of expertise to emerge effective. As you buy a stock of a specific company, you turn out to be a partial owner of that company and you are thereby liable to share the gains of that specific company.

Cash equivalents include investing in treasury bills, certificates of deposits, savings account and so on. If you commit in money equivalents you need to know that they pay lower curiosity price and are therefore dangerous at the time of inflation.

Consequently, if you’ve racked up a massive quantity of financial debt and you are looking for a financial debt free route, you might try your luck in the investment marketplace. You can easily turn out to be a millionaire by investing in the right financial instrument and at the right time.

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Why do You Need Insurance for Business?

For any type of business, it is essential to make sure you have enough insurance cover for your needs. That means that you will have to get in place various types of insurance cover no matter what type of business you run. There are many different types of insurance cover to suit many different business needs and it is imperative that you get the correct cover.

If you are unsure of the amount of cover or the type of cover that your business may need then you will find that many of the insurance companies will have a 24 hour help line where a trained insurance advisor will be able to help with your needs. They will be able to advise on the type and the amount of cover for your kind of business.

If you are a landlord and have a property business then you will need specialist insurance to cover all your business insurance needs. Some companies offer an insurance tailored especially for landlords and their property portfolio. It is important that the landlord is able to protect his property investment, if you own property and rent it out for payment from tenants then you will need more than the average home insurance to cover all eventualities.

Some companies offer a very comprehensive cover for landlords that include property owner’s liability up to £10million, insurance protection for up to 10 properties in your portfolio, cover to rehouse your current tenants if there were a fire or flood. There are also glass and key replacement if windows are broken or if you lose the keys to your properties. Peace of mind is the essential thing that a landlord needs when they have a property portfolio.

Retail shops will need to have insurance for business that is specially tailored for their type of retail business. It doesn’t matter whether you have a franchise or a small independent shop you will find insurance cover that will suit your business needs. There are all kinds of cover for retail premises including cover for any theft from employees. Most insurance companies will be able to offer you retail insurance for business that is tailored so that you only ever get and pay for insurance that you need.

Besides the usual employers liability insurance and public liability insurance needed for a retail premises, there are also many other retail insurances including bankrupt interruption insurance which is for a business that loses all its working stock in a fire or flood. There is also terrorism cover for retail stores too.

Insurance for business can also include optional extras. There is also optional insurance for all your business equipment by AXA business insurance for example, as some business equipment that is used on a daily basis might need replacement if it is stolen or damaged.

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Goldman Sachs sails past Wall Street's expectations

Goldman Sachs sails past Wall Street's expectations

Strength in investment banking helped Goldman Sachs report earnings and revenue that easily topped Wall Street's expectations. First-quarter investment banking results were driven by strong activity in commercial mortgages and so-called leveraged
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