Thread created on Thu Jul 17, 2008 17:15:49 Last replied to on Thu Sep 02, 2010 04:40:14
The "Knights" Quick Start Guide to the Stock Market
The basic idea of this guide will be to give you some insight on how to make money with the stock market. One thing you will have to always remember is that the stock market involves cash from players and for you to make money someone else has to lose money. So it will not always be easy and it will not always be quick.
What you need:
A Stock Ticker - You can get one at the points exchange for 20 points.
Money - The more you have the more you can make.
Time - The more time you can invest in the market the better off you are.
REMINDER: Being active is key, just like it is for all my guides. The more you are on the more active you can be with buying and selling stocks.
REMINDER: The stock market updates every 15 minutes and you should check it every 15 minutes.
REMINDER: Before sinking your money into the market you should take a little while to watch the market and get to know the trends.
The "Working the percentages" section.
You see a stock just went up 46 cents and yours only went up 2 cents. You start thinking, why should I be making only 2 cents when I could be making 46 cents. Well stop thinking that way right now. The one that went up 46 cents might look like a winner but you have to keep your eye on the percentages. 46 cents on a high priced stock might be .08% whereas your stock that went up 2 cents might be .10%. Your 2 cents is actually worth more then that 46 cents.
The "What about banking" section.
In a 10/10 bank if you invest for 3 months you can make huge money for sure but that works out to be about .30% per day over the course of the 3 months. When investing in the stocks that is the number you have to keep in mind. The more active you are the more you can buy and sell your stocks and make the most money, but even if you are not very active you can still easily attain the .30% per day to make more then a 10/10 bank will give you.
The "Don't Panic" section.
Stocks are like gambling, it is a risk, but just because a stock went down it does not mean the world is over and that stock is dead. Downs will happen, you need to learn how to live with them.
There are two concepts you can go with here.
1) The long hold.
- Some times a trend will change and your stock starts to drop. It will become near impossible to sell but you do not always need to. Some stocks have a history of ups and down and it might only be a week before it starts going up again and it will be easy to sell.
2) The cut your losses.
- There are some people that will buy falling stocks for a percentage of the current price. If you do not want to wait a week or two for it to start coming back you can sell to one of these people at a loss right now and get your money back to put elsewhere.
The "Jump on the bandwagon" section.
Most people can see the hot stock coming from a mile away if they have been watching the market. You will see the total available stocks dropping or at 0 nearly every time you look. That is usually a good stock to jump into because money is being poured into it and it keeps going up, but it is not always a good stock. Look at the trends. All good things must come to an end and you do not want to be the last person on the bandwagon when it ends.
The "What type are you?" section.
There are various types of stocks, of course I have given names to all of them. Below are the ratings of all the stocks and their type.
The Jumper - A jumper is a stock that is all over the place. It goes up huge percentages and it goes down huge percentages. It can be a real risk because a Jumper will usually turn into a riser or a bomb at any given moment. To tell which one it is going to become you need to watch the rest of the market and not that one stock. If all stocks are doing well a Jumper is usually a decent investment. If all stocks are doing badly or moving slow you should not invest in a Jumper because you will lose a lot of money.
Risky Hint: Sooner or later a jumper will start to move solid one way or the other. If it starts to move up, then pull out and take your profit while you can. If it starts to die. Either cut your loess or wait for the comeback (see "don't panic" above).
The Riser - This is a solid stock. It is usually the one stock that is going up when everything else goes down. It moves slow most of the time and for very small percentages but it keeps moving up. This is the perfect stock if you can't check the market every 15 minutes because of its slow movement.
Risky Hint: Even a riser can be hard to sell sometimes as people look for the quick buck and will not take something moving up slowly. Do not panic however if it does not sell right away. As long as it is still rising, you are not losing money, you just do not have access to it yet.
The Bomb - This is the one that gets everyone. You have to check the history of the stock to not get hit by the bomb. Many times it is the even stock when all others go down. This makes people think it is a safe investment because it does not go down when everything else did. On rare occasion it will make a large percentage jump of .18% and that will drag a lot of people in but if you look at its history you will see that is goes up .18% every 8 hours and then continues to drop all day long until it is lower then it started at. This can be a good investment depending on when you put your cash in because someone is always bound to fall for the big gains and buy in.
Risky Hint: If you are lucky enough to pick it before it jumps the .18% then you should put it for sale instantly. Hopefully someone will buy and you will make some profit and usually at worst, it will only go back down to what you started at and jump up again starting the process all over.
The Money Pit - This is the stock that used to be good, 15 minutes ago. But it is now in a downward spiral that just started and there is no way to escape. Sometimes those downward spirals can last all day or for days. This is where money goes to die. You can lose a fortune with this one quick because it will never sell. No one wants a dying stock. Usually this was a riser that is no longer rising.
Risky Hint: Remember the percentages I talked about. That is all that matters. If this starts to drop and you were up 4% in it then try to sell it at a discount. Even if you sell it for MUCH less then it is now you can still get out with a 1% profit to someone looking to cash in on a deal by buying it for much less then it is currently going for. You still made more then 0.3% for the day, so be happy to at least get rid of it.
The Money Maker - This stock is the favorite of everyone of course and there is no way to explain it. The stock just keeps going up no matter what you do to it. All the investors can try to sell at the same time and it still keeps going up. The whole market can be in a free fall and this one keeps going up. This one is easy to pick out. When everything is down this one still goes up a nice large percentage. When everything goes up, this one goes up more with an even larger percentage. This is where fortunes are made, if you are lucky.
Risky Note: Remember the idea that you do not want to be the last person into the pool. Because if you are, there might not be any room left for you. Once this baby starts to go down, everyone will be selling and there will be no one to buy. So you have to get out before it hits the top. Remember the percentages. When you have made enough to cover your day you have to start thinking if you want to risk staying in or if you want to take your profit and run.
The Lump - This is like that unwanted guest that comes over for the weekend and never leaves. It doesn't go up, it doesn't go down. It just sits there like a lump on a log and you can do nothing with it. You can not sell it, even at a steep discount. No one wants it because it doesn't really do anything.
Risky Hint: This used to be the perfect stock to hold your cash and sell when you needed some cash but now that you can not do that and you have to wait for someone to buy it, it makes it harder to store money in it. However, that concept will still work long term. Sooner or later a lump will move up, or down, and someone will invest in it thinking there is a chance to make money. That is when you get your cash back. With a Lump the concept usually is to buy it and put it on the market instantly. Maybe in a few weeks you will get your money back. Maybe in a few hours. Either way, it was safe for a little bit with little risk.
The "You could have just skipped to this" section.
6 rules to remember
1) Don't be afraid to risk, but remember it is like gambling.
- Remember, for everyone that makes money on the market there has to be someone that loses it. Try not to be one of the ones that lose it but always remember, even the best lose something some times.
2) Watch the market as often as possible.
- Sure your stock has been going up steady for hours, if not days, but sooner or later that will end. If you miss seeing it come you could make it impossible on yourself to sell the stocks.
3) Actually click the links, do not just look at the outer graph
- Check on how many stocks are available even if you do not want to buy. Check the forecast, check the trends, check the long term graphs. See the big picture not just the tiny graph.
4) Jump on that hot stock even if you see 0 shares
- F5 is your friend, use it. When shares appear... buy them.
5) Don't get greedy
- Sure you can stay in that stock, it made you 3% today but if you stay in too long, actually collecting that 3% might be a problem. Sell it when have made a good profit so you do not get caught.
6) Remember, it is percentage made that matters
- As long as you are up over 0.3% you have had a good day.
6 Tips and tricks
1) Invest in small amounts It will be easier to sell 100 lots of 2M then 1 lot of 200M.
2) Sell at a market discount If you have made your profit that is all that matters.
3) Buy at a discount If you can get a deep discount from a nervous person that needs money you can make it work for yourself.
4) Actually look at the market before making a deal If someone is anxious to sell there must be a reason.
5) Buy and sell hot stocks often If you are always buying and selling you are less likely to get caught when a stock dies.
6) Buy small amounts in all stocks You can use that is a personal trend meter. Little risk when 1,000 is in it and it might help you notice a good stock quicker then the graph does.
REMINDER: For every 1M you made that means someone just lost 1M. So if you want to make money you are going to have to hope for someone to make a mistake and lose money.
REMINDER: Sometimes you will be the one that makes that mistake.
REMINDER: Investing with anyone is not a good idea. Your money is only safe when it is your hands. If you are not making money then think of giving up the stocks and not giving it to someone else. You can lose it all that way.
One last reminder... also known as... a tip for the muggers out there
Never talk about your stocks in the open, at least not the amount of cash. Saying something like "I've been trying to sell 1B worth of MCS all day and no one is buying" is not a good idea. When you are sleeping MCS can start to rise and muggers with a brain will check the market and see that. If they see 0 shares available for sale that means yours sold and you will wake up to tons of events about being mugged and a lot less then the 1B you where thinking you would have. Also, being buying and selling often is the best way to make money. If you are a big investor expect lots of events from muggers. They know that you do not control when your stock gets sold, so they know you might often have a large amount of cash on you.
Well, I sure hope this guide helped some of you. I'll add more and update it as I can think of it.
Regards,
- Knights-
Edited by: - Clansdancer on 09/03/09 at 11:40:59 AM
I've been saving up my points to eventually get into the stock market, but I still don't know if it's worth it. I don't like gambling, but I am very active... I just think I'd make more money selling 20 points then being in the stock market...
By SlickNiK105 [892702]
I've been saving up my points to eventually get into the stock market, but I still don't know if it's worth it. I don't like gambling, but I am very active... I just think I'd make more money selling 20 points then being in the stock market...
![-Clansdancer [65306]](http://awardimages.torn.com/65306-55602-large.png "-Clansdancer [65306]")
![UWF-westie48 [736223]](http://awardimages.torn.com/736223-90674-large.png "UWF-westie48 [736223]")
![Mattyy__ [368249]](http://awardimages.torn.com/368249-83001-large.png "Mattyy__ [368249]")
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![SlickNiK105 [892702]](http://awardimages.torn.com/892702-80105-large.png "SlickNiK105 [892702]")
![booyaka247 [421802]](http://awardimages.torn.com/421802-6722-large.png "booyaka247 [421802]")
![hellboy994 [695357]](http://awardimages.torn.com/695357-4342-large.png "hellboy994 [695357]")
![L4_Isoside [169894]](http://awardimages.torn.com/169894-4475-large.png "L4_Isoside [169894]")
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![Ulquiorra__ [239098]](http://awardimages.torn.com/239098-41474-large.png "Ulquiorra__ [239098]")
![YOURLADY [91709]](http://awardimages.torn.com/91709-64529-large.png "YOURLADY [91709]")
![Spliffy [315389]](http://awardimages.torn.com/315389-55193-large.png "Spliffy [315389]")
![bananafish [788714]](http://awardimages.torn.com/788714-2362-large.png "bananafish [788714]")
![yagiz99 [193050]](http://awardimages.torn.com/193050-74311-large.png "yagiz99 [193050]")
![Sethenor [145906]](http://awardimages.torn.com/145906-61220-large.png "Sethenor [145906]")
![sicky232 [894227]](http://awardimages.torn.com/894227-7547-large.png "sicky232 [894227]")
![___ [591498]](http://awardimages.torn.com/591498-60205-large.png "___ [591498]")
![Micah_B [941470]](http://awardimages.torn.com/941470-26829-large.png "Micah_B [941470]")
![Leggionare [853756]](http://awardimages.torn.com/853756-5809-large.png "Leggionare [853756]")
well impossible but i can dream ha