I'm green as they come!!! I figure settng up an account with an online broker is no big deal. However, once set up, I don't have a clue as to what stock to purchase, i.e. how to analyze stocks, trends, etc. I know to do "paper" trading before I take the real plunge, but again that is of no use if I don't know what to look for. Any suggestions?
Watch Cramer.... JK You sound like your really really new to this, before investing I would suggest reading the Wall Street Journal consistently before I even thought about touching a stock. You should be able to pick up some ideas there. Make sure you watch how a stock performs when news comes out. I would start with the most popular and well known companies first, ones that you know how they operate and that news is released about them all the time. Good examples Apple, Google, Coca Cola, Lockheed Martin etc...
Go to Borders, just grab a pile of Technical Analysis books for newbies and read them in the cafe, if one or two seem interesting, BUY them! Check the book list here on ET for ideas. Are you a student?
I would suggest diving into technical analysis and avoiding the daytrading route. Stockcharts.com is an excellent source of info and a good place to start.
Everyone finds themselves in the boat you are currently in so here's what I did to get started.... I was your classic buy and hold investor and I desperately wanted to trade. I did fairly well using the Peter Lynch method of going to the store and investing in what you buy - i.e. things like Proctor and Gamble, Coca-Cola, Clorox, and other household names like this. I stuck to buying companies that had household names. So, with that strategy in hand I bought stocks as though I was planning on holding them for the long-term like I had done for years. If I got a fairly good 10 or 15% move on them I would just sell them and book them as a trade. If that didn't happen I just held them long-term like I had done for years. This way, I kinda fell bassackwards into trade. Hypothetically, I couldn't lose because I was just converting long-term investments into trades if they showed me a quick enough profit. The downside to this strategy was I was selling stocks that would have netted me a solid return on investment had I held them for many years but I wrote that opportunity cost off as the cost of tuition. After a few of these investments turned trades I definitely had the bug. The next thing I did was read the most in depth book on technical analysis I could find -- Technical Analysis of Stock Trends, by Edwards and Magee. Be forewarned, this book is as "in depth" as you can find. It reads like an engineering book so you may be better off starting with Technical Analysis of the Financial Markets, by John Murphy. So....are there any stocks out there that have a brand name and currently sell at depressed prices? SBUX perhaps? Perhaps an "investment" in SBUX that could be converted to a "trade" is the way to go? Do your own DD, make your own decisions and Good Luck. It takes years, not months so don't rush it.
I'd stick with the daily, weekly and monthly time frames, and then I'd suggest developing a good understanding of support / resistance.
I would recommend you take the time to find a real trader in your area and try to work under his or her wing with your own money... obviously compensating them for their time etc.. out of your profits and potential out of your pocket if you lose... this is better than any book or forum out there.. in any business venture having a "mentor" right there with you who is actually trading is far better than a book. Goodluck