Hot stocks for a new trader?

Just now getting into stocks, I don't have too much to spend, so I'm just looking for a few shares. Help?

Public Comments

1. Trader can use those stock which have good up and down movement those all are F&O stock

2. Only a opinion but Ford(F) looks like it's moving into a head and shoulder bottom pattern, which indicates it's going up in price. Check out this site: http://en.wikipedia.org/wiki/Head_and_sh…

3. If you don't have much, you should no be buying stocks.

Unless you haveva very large amount, you can't diversify by buying stocks. Instead, buy quality stock mutual funds. Since you pay a commission for each trade, it is neve a good idea to make a bunch of small purchases.

4. LPHI is a high risk stock, but if you can handle risking your money (which I can't at the moment), you might be able to make some quick cash. Buy it when its less than $3.50 a share and the sell it when its more than $4.00.

5. If your asking Yahoo finance for financial advise you probably shouldn't be trading. But on the other hand you can still invest if you dont have much to spend.

6. Take a step back to reflect here. It's small fry like you who enter into the large ocean of investing only to get ripped to shreds by the professional sharks and killed.

No offense but this is not "games of chance" like Las Vegas... if you don't have trading experience and knowledge then your probability of success can be much, much lower.

7. It's hard to make any significant money if you can only afford "a few shares" because the stock would have to make huge upside movements for you to make any money. If you had 500 dollars and bought five shares of stock selling for 100 dollars per share, and the stock went up 5 dollars per share, for example, you'd only be making 25 dollars if you decided to sell it at that time, and that's not including the broker's commission fees, either. .

If you had 10,000 dollars, on the other hand, and could therefore buy 100 shares of the same stock, and it went up by the same amount, 5 dollars per share, you'd make 500 dollars, which is obviously a big difference.

If you decide to buy "penny stocks" so you can buy a larger amount of shares with the small amount of money you have, you might not make much money when you decide to sell them because of something called the "bid"/ "ask" spread, which has to do with the volume of trading of a particular stock. In other words, there might not be that many other investors who want to take your penny stock off your hands when you decide to sell them, and even if they do, they're not going to pay you as much for.your shares as you might think.

As I think somebody else already mentioned, if you have a monthly income, it might be better to put a certain amount of money into a mutual fund, maybe an index fund or something, every month.

8. How much you lose, and how soon you start making money is entirely up to you.

The average learning curve to learn how to profitably trade forex (or any other market) is about 12 months. What you want is to get from day one to the time you are consistently making money with the least loss possible. Here's how you do it.

open a live trading account with Marketiva http://www.marketiva.com/?gid=40471 with only ten dollars ($10). Marketiva will give you free 5$.
- with this live $10 trading account, set your leverage to 10:1 and trade only with 1 unit, and not the minimum one lot.
- trade this live account with your trading method and fine tune your trading method some more.
- when you are able to trade your live account and show profits three months in a row, then add more funds to your account.

Let's do the numbers. Assuming you are such a newbie that you will bust your account each month during the first six months of trading. With $10 at 10:1 leverage, and trading only 1 unit each trade, at the end of your first six months, you would have lost only $60. Consider that as tuition fee to learn how to trade. During your first six months of losing trades, I am sure you would have gained a lot of insights on how to be a better trader.

If you applied what you have learned recently, in the next six months of your trading, you will be breaking even, and may even start showing profits.

The reason the majority are losing money trading is that they focus more on entry--when to buy and when to sell. The best traders you will meet will tell you that it's how you close a trade that counts.

While you are working to get past this learning curve, learn everything there is to know about trading.

Hope my input helps & Good luck!
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