Now that you've learned the basics of stock trading, you can get into the specific ways you can make money. Our trading stock strategy guide is a collection of articles explaining real-life techniques you can use to begin trading stocks. You'll learn how investors like Warren Buffett lower their cost basis through using stock options, how other stock traders make money by anticipating dividend changes, and much more.
Stock investing is filled with intricate strategies and approaches, yet some of the most successful investors have done little more than stick with the basics. That generally means using funds for the bulk of your portfolio — Warren Buffett has famously said a low-cost S&P 500 index fund is the best investment most Americans can make — and choosing individual stocks only if you believe in the company’s potential for long-term growth.
The most recent annual report – While reading the annual report, you'll want to pay special attention to the letter from the Chairman, CEO, and sometimes CFO or other high-ranking officers to see how they view the business. Not all annual reports are created equally. Generally, the best in the business is considered to be the one written by Warren Buffett at Berkshire Hathaway, which you can download from free on the holding company's corporate site.
Kirkland Lake Gold Ltd. (KL) gained $1.31 to $37.69 on 2.7 million shares Tuesday on no news from the gold mining company. The stock is in a beautiful long-term up-channel from the $5 range in January 2017. After a 3-month sideways formation, the stock has rallied in recent sessions, with Tuesday's move taking out resistance from the Feb 28 high at $36.74. Watch for the mid-$40's next.
Finally, the other factor: risk tolerance. The stock market goes up and down, and if you’re prone to panicking when it does the latter, you’re better off investing slightly more conservatively, with a lighter allocation to stocks. Not sure? We have a risk tolerance quiz — and more information about how to make this decision — in our article about what to invest in.
Advanced Micro Devices, Inc. (AMD) leapt $1.99 to $29.57 on 107 million shares Tuesday. On Monday the chipmaker announced a deal to license its custom graphics intellectual property (IP) to Samsung for use in mobile devices. The stock has broken out of a 2-month sideways channel, and any move across the $29.75 range could get this into the mid-$30's.
Disclaimer: This site may include market analysis. All ideas, opinions, alerts and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, alerts and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.