Investing questions?

Question

1. when people say buy low sell high, how does it work i mean do you buy when the stocks are -0.2 percent or what.

2. how low or high should a stock be when investing in one.

3. what causes stocks to go up and down?

4. what are some good comapinies to invest in right now?

Answer 1

invest in reliance industries your money will double in 6 months

Answer 2

1) If you're trying to buy low and sell high you aren't INVESTING, you're TRADING. Decide which it is you want to do: put your money somewhere that it will grow over time, or put your money somewhere that you think you can take advantage of regular market fluctuations to chip out a couple of bucks.

2) If you've decided to INVEST, you should buy stocks when you think the price is a good deal. Legendary investor Warren Buffett says to buy good companies at a good price. If it's a great company but it costs more than it earns, it isn't really a great deal. Or, if it's a great price on a crappy company, it's still a crappy company. Most people judge this by the P/E ratio (price to earnings ratio, how much does the company cost compared to how much it earns). You could (and should) do a full day's worth of reading on the P/E ratio. Stay away from methods like "Chart Analysis."

3) Market forces, geo-political events, investor psychology. Too many factors to ever be able to make predictions with any mathematical certainty.

4)a) I like North American banks right now. I believe they are undervalued because people have been backing away due to the sub-prime mortgage meltdown. But it's not like they're going to shut their doors and give up, they still make tons of money. Also, banks pay dividends, which is something I personally look for as an investor.

4)b) I also like oil companies, they control what fuels the world and they are undervalued because a lot of people don't understand that alternative energy is not sustainable and global warming is a hoax.

Happy Investing!