FAQ

I am looking to start buying stocks online. Can anyone recommend a stock?

More info: This is something I want to do for fun. I have Mutual Funds, IRA's, 401k. I just want to buy a couple of stocks here and there, and I don't want to pay my broker to do this.

You've got to pay your broker something. It's just part of doing business on the stock market.

You have to make your own decision on which stock, depending on your financial goals.

How does one become a stockbroker?

I want a career working with the stock market and personal finances. Moving to Wall Street is not an option, I live in Michigan. Where can I find programs that will give me the qualifications needed to get a stock market/finance career. Most colleges offer accounting degrees but I am having a hard time finding personal finance/stock market degrees.

How do I figure out how many shares of a stock can I buy for any given amount, without actually buying them?

The answer is by using simple mathematics.

First you need to decide how much of each stock you are going to buy - since not all stocks are priced equally some would be $20, other $400 and some 0.05 cents.

$100,000 over ten stocks... Decide what ratio you will hold of each stock. E.g. 6:3:4:1:9:4:3:7:9:2

So totalling the ratio is 48. Now you can use a combination of the ratios and fractions to find out how much stock you can hold with your $100,000.

How to make money in options?

I would suggest you get yourself one or two good books on the subject.

Making money in options can be done, but it has a different set of risks associated with derivatives compared to holding the underlying securities.

What are the bulls and bears in the stock market?

The bulls are present in the market when the market is charging UP.

The bears are in the market when the market is trading down and where profits are being torn DOWN.

What are the best stocks for long term investment?

Blue Chip Stocks.

Although, they can also prove to turn sour.

Best thing you can do is do an analysis on what products or services you think will still have a demand in the future. Check if the company has sound management. Then put your money where your mouth is.

Then monitor your investment.

Can I purchase stocks on my own or do I have to use a broker or an online trading company?

You can acquire stocks in the following manner:
1. Gift - they are given to you as part of your salary or Christmas present.
2. Dividend reinvesment plan
3. Direct on-market purchase through a broker
4. Sometimes from the company if they are issuing more shares
5. If brand new company - buy shares from IPO
6. Through executing derivatives such as options

If there is anymore please let me know.

When trading stocks on NYSE I find stocks with ask/buy prices marked N/A. How do I acquire these stocks?

When I am trading stocks on yahoo finance I come across stocks like AK Steel that have a bid price marked N/A and an Ask price marked N/A. How do I purchase shares of these stocks?

1. Trading Halt.
2. No liquidity. there are currently no bids on the market to buy or offers to sell their stock.

If it is a trading halt - you can't buy them until the halt has been lifted.
If it has no liquidity, simply put up a bid price at which you are comfortable to buy them at.

Where, as an Individual Trader, can you potentially realize the HIGHEST return?
In principle, would that be Stocks, Options, Futures, Forex, Hedge Funds or what? I’m not necessarily concerned about the inherent RISKS involved, but the highest potential in terms of return on investment (i.e. money at risk). Please justify your answer.

Hi - I'm a trader...Highest Return?

Where can I find a great FREE website that teaches stock market Trading and Investing?
It could be anything from stock market trading to Futures and Options or even Forex. Could be Day-trading, Online-trading, etc. Please feel free to list as many websites as you might know about - as long as they are FREE. Also, any good book suggestions and/or tips?

First of all - you should focus your learning on one or the other. I'm a trader myself and trading and investing are two totally different things.