Powerful Start To Self Directed Investing

Stock Market NewsThe days of contacting a broker to buy stocks and shares are long gone, and so are the fees associated with using this service. It was changing too fast and in a matter of seconds, the stock was down 10 cents then 20 cents. When the securities board detects fraudulent activities, it tries to notify law enforcement and the people pumping the stock flees. After almost getting burned in a Pump-and-Dump scheme, I now ignore all suspicious emails that smell like a stock pump. If you’re playing the stock market or plan to play it, pick up a few good books on investing and reading them.

Try to compare the movement of the price with any recent news items relating to the company. Your broker should provide a link to news stories related to the companies on your watch-list (Note: Google Finance doesn’t link to every story that is relevant). Read back through the news items related to the company to see the Annual and Interim Reports. In this case, set aside, your favorite adjectives and adverbs and your ego-because the news release you spend hours writing (especially if a committee is involved) will end up looking or sounding anywhere close to piece of classic writing. Typically a stock is considered a good value if it is trading near its 52 week low.

If you ever took a journalism class, you learned about the 5Ws and H that represent the parts of a good news story. You may have also been taught that all of those questions should be answered in the first paragraph or as news people call it, the lead. In news releases, paragraphs are limited to one sentence for the first paragraph and either one or two for the remaining paragraphs. The reason for this is to make every item an answer to the 5Ws and H. It should be understood that the news released should be typed, but I said it anyway.

If you do this, there are two things to do. Cut and then paste the news release in the body of the e-mail and then attached your Microsoft Word copy (or whatever text program you are using) as an attachment. While my departure did not cause the change, but the departure of hundred of seasoned journalists, the advent of 24-hour news and other items already mentioned above, would make it seem that many in the media have forgotten the basics and could use a refresher course. Beta (Volatility): Beta is much like the market cap, in that there is no specific beta to look for.

Open Interest on Options Chains: Look at the open interest on options chains for a specific stock to see how many people are planning on buying and selling and at what price. Stock prices will often reflect the investors’ perception of the stock, which is usually not an accurate evaluation of the underlying company. However, make sure the stock is on a rebound if it is near the low, because it could always drop farther and create a new low. A stock can always go in either direction, no matter how much the price has fallen. If someone were to buy the entire company, they would have to buy all of the stock.

Stock Market NewsStock Market News