Investing in stock exchange markets

Question

How do I determine the best company to invest my money in order to. bring good returns

Answer 1

www.thestreet.com

has lots of tips and ads of companys

they also have games to show you using "fake funds" how your investments would turn out

it isn't easy...

good luck

Answer 2

I agree with m2, I use thestreet.com also. Their boss, Jim Cramer, has a very entertaining TV show every night on CNBC at 6 & 11pm called "Mad Money." He starts off each show saying "It's my job not just to entertain you, but to educate you." He suggests companies and teaches you how to research stocks, and does it in simple to understand language. His books are great, too. I also suggest themotleyfool.com, who also has advice for new investors.

The bottom line, research a company before investing in them. Is their industry doing well? Are they a leader within that industry? What are their prospects and risks for the future? Any publicly traded company must make its annual reports available to the public. This will not only provide valuable financial statements, but guidance as to what the near and long term future of the company may look like. It's a lot of work, but I made about a 20% profit on my stocks last year, compared to 3% on my bank account.

Answer 3

yeah good luck is right! this is a very tough market right now. i would spend at least 3 or 4 months educating yourself before investing any money. there is a number of websites that you can practice with fake money. i like www.updown.com because if you beat the market you can actually earn real money.

the most important thing to remember when playing with the stock market is <<<Every time you buy or sell a stock; you are buying it from or selling it to someone else, and one person involved in that transaction is a complete idiot. If you don't know which person that is, it's probably you!!!>>>

Answer 4

You have to follow the stock over the years. If you find a share which you want to own follow its previous performances like asset ratio, credit ratings, dividend ratio etc. Follow the performance of the share in the market over the years.

Answer 5

It depends on how you evaluate a company.

First off figure how you want to rate a stock, fundementally, that is the balance sheet, market exposure, price to earnings ratio, management, etc. All public companies, those that trade on the stock market, have to make all this info public by law and all have a annual report that they give out for free. Contact a company you like and have them mail you thier annual report. Now if you are a technical anaylist, you want to look at numbers, thier price high and low, how low have they gone, how high, what is the volume, that is how many shares do they trade per day, you will look at graphs and figure out thier resistance and support, and then you will buy when all this data looks like it is giving you a buy signal. If you are a quantum anaylist you will look at relationships and ratios alot. If you are a value guy you will wait to a stock you like goes down in price for no good reason and then jump on it, if you are a growth man you will get a compnay that has potential for phenomenal growth or expansion. There are 1000's of books available explaining this in much greater detail, go to you library and get them for free to read. Hope this helped.

Good luck.