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Is This A Good Time To Buy Stocks Online?

Chairman Bernanke has stated that the economy is showing signs of recovering. What he actually said is that the country’s modest rebound is sustainable. along with that bit of news, retail spending has increase in the last month. To top it off, JPMorgan Chase & Co posted better than expected earnings.

If you’re looking to buy stocks online, think of this as stock market 101. Here’s some things to consider;

As far as I can see, it’s all smoke and mirrors. I’ve been following the stock market for years and I still can’t explain why the Dow Jones has risen as high as it has (11,000+). Nothing has really changed in the last year. The real estate market is still seeing record high foreclosures, houses are on the market for an average of 9 months, and many of the foreclosures are still owned by financial institutions.

The unemployment rate has gone higher in the last year as well as many companies are still holding off on hiring until stronger numbers appear. There are over eight million people who have lost their job in the last two years. The unemployment rate (official 10.2%) is still way too high. Just think about all the people who are no longer collecting unemployment benefits. It’s estimated that the true rate is somewhere at 17%.

What about all the people that are spending their money to increase retail sales? My thoughts on that is that many more people have claimed bankruptcy in the last two years. They now have money to spend since they no longer have those monthly bills that they were trying to pay off.

In my opinion, the economy has not recovered. There is no reason for the stock markets to be so high. Every time the markets have taken a plunge and bounced back, it always has a second bounce before the real recovery happens. If you’re looking for the best stocks to buy in this current economy,
I advise you to tread lightly. I only have about 25% of my portfolios in the markets and until I see a good drop in the markets, I’ll remain on the sidelines with most of my money. I don’t have confidence in Wall Street at this time.

© 2010 Buy Stocks Online
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Buy Stocks Online With ShareBuilder

My only experience with online brokers is with ShareBuilder, and so far I have been relatively pleased. Having no prior experience with stock trading and not knowing the best stocks to buy, it was an easy system to figure out. Also, since I am a broke college student, the fact that there isn’t a minimum amount required for investing was (and still is) very attractive. Also, there is no recurring monthly fee for a basic account to buy stocks online..

Depositing money in your investment account is not difficult – it is just like making an online purchase that is funded directly from your primary checking account. Funds can be added or withdrawn at any time. I usually do my own research on my investments, but ShareBuilder does have some good resources for information on historical stock prices and ratings.

They also have several great walk-throughs to find out which investing plan is right for you based upon the information you give them, such as when you plan to retire, and how much you plan to save per month to your retirement or other investment accounts. These recommendations are extremely helpful for clueless investors like me who don’t know exactly what to do about saving for retirement, but know they want to start now. You can also change and customize any recommended plans, so nothing is set in stone.

I felt comfortable opening an IRA with ShareBuilder, and I derive a sense of glee when I can watch my investments appreciating (or depreciating, but that’s not usually the case) on a regular basis. After just having gone through tax season, I was grateful that ShareBuilder furnished the tax documents on my investments and dividends; otherwise I wouldn’t have had a clue where to start with tax information regarding my ShareBuilder accounts. Also, they email me monthly statements in case I haven’t logged in recently (difficult for me to do personally, but probably a better idea to keep from anal-retentively checking your stocks on a daily basis), and also send notifications and updates through email.

The one thing I wish I would have investigated earlier about ShareBuilder is how to get their advertised $4 trade fees. Normally it is $10 to place a trade with ShareBuilder, and as a new investor, I thought it was because I had a basic account. In fact, the way to get $4 trades is to utilize their Automatic Investing feature. When you set this service up (which is free to all account holders), every trade placed through Automatic Investing will cost $4 per trade, not $10. Apparently $10 is the fee for a real-time (right this second or whenever the markets are open) trade with ShareBuilder.

All in all, as a newbie investor, ShareBuilder has been a great online broker for me to become familiar with investing, and I would certainly recommend it to anyone interested.

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Best Stocks To Buy

“We can help you find the best stocks to buy. “

That’s what many different websites are promoting these days. Which ones can you trust? Of course you have to take into consideration all these websites are pushing penny stocks. Their “stock tips” will only deal with stocks that the price-per share is less than one dollar.

Here at Buy Stocks Online, the best stocks to buy are the ones that have a solid foundation. It doesn’t matter if the stock’s price is $0.05 per share or $240.00 per share, if the company is on the right path, the share with go up in value.

Here are my best stock market tips to help you decide how to buy stocks smartly.

1. Read. Be prepare to read a lot too. You must do hours of research on several different stocks before you find just one to buy. Read their quarterly reports for the last year and a half, read all the news you can find about the company and it’s goals (short and long term) are. Read about their products and/or services. Check a reputable stock market forum and read what the members are suggesting. Check your community college for stock market courses that you can register for. After you find the best stock to buy, you should still do at least one hour per week of research for each company you invest in.

2. If you don’t know how to look at a company’s stock chart, then you need to learn. It’s very important to know how to read the charts. Watching a stock’s past performance can help predict it’s future performance. Watch how the price moves over time as well as the stock’s volume rises and falls. Understand the 50, 100, and the 200 day moving average.

3. All stocks prices rise and fall throughout time so it’s important to know if you’re buying the share at the right price. Be patient, don’t jump the gun (sort of speak). If while you’re researching a stock over the past week or two, and the price-per-share has jumped up by 8+%. You have to be patient to wait for the price to pull back before you buy. All stocks will have a pull-back in price. It is healthy for a stock to drop down in value 3%-8% after a big run-up in price. Profit-takers will sell off their shares and sit back until the price takes it’s drop and then jump back into buying those stocks again. Never chase a stock. Many times beginner investors have lost quite a bit of money because they think they are going to miss out on the rally, only to get in at the end when other investors are taking their profits.

4. Just because a stock is working out great for someone you know, don’t think it’s going to do the same for you. His/her may have different needs, goals, or time on their side for their reason for their trading technique and level of risk in their portfolio. You should not take “stock tips” from anyone. There is no such thing. Yes they can go ahead and say buy Research In Motion (NASDAQ:RIMM) or Pfizer (NYSE:PFE), but they don’t know if those types of gains are what you’ll need for retirement or discretionary spending.

So in my opinion, the best stocks to buy are the ones that you find for yourself by doing your research, analyzing the charts and showing patience.

Reader Question:
Have you ever invested in the stock market? If not, what stops you?

© 2010 Buy Stocks Online
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