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Buy stocks now

Updated on June 23, 2009

stocks to buy during recession

Smart investors do not wait until the market is going blue blazes before buying stock picks. Even the new investor with little experience trading may out perform the market, especially during down market days.

On the Internet, Motley Fool is a fun place to set up an imaginary account and test yourself against the results of peers(and even some pros). Here you will get stock picks that indicate several key facts, such as price to earnings, price history, dividends, price to book, and how the stock does in its sector.  All input is considered valuable by the stock selectors, even new- bys will be treated like everyone else.

Any broker you open an account with is going to provide plenty of information to help you decide which stocks you want to buy. another method is to buy stocks that are designated as dividend reinvestment stocks. These stocks have paid dividends for years, sometimes paying a dividend for decades without fail. This is a fairly reliable sign that the stock is a winner, but you may find otherwise.

Forbes, Fortune, and Investor's business Daily provide accurate and timely stock information. Online, Google and Yahoo have whole sites dedicated to investors. Jim Kramer's Market Watch on television or the Internet is a fun way to try and beat the pros.

After many years of successful investing, generally I like to watch a stock in action before deciding to buy. Mostly the stocks will do well if they meet my criteriam but I have saved some big losses by waiting for another day or two. Of course, it isn't always prudent to wait or you might miss a great start.

Even in losing years, there is the satisfaction of taking a perfectly legal tax deduction for your loss. Considering how much fun it is, it;s well worth the small entertainment fee(the loss). I have had an account with Scottrade for almost twenty years. They have a beautiful "big board" on line to watch the different markets in action.

In addition, they provide information on exchange traqded funds( a cheaper and easier to negotiate instrument for following almost any, sector, market, stock or fund you can think of.

ETF's as they are called for short, play a significant role in each days market. They are easier to use than almost any other fund.

Scottrade provides a recap of buys and sells for income tax purposes. an investor has the ability to know to the minute where his investments stand. You may also open your IRA through the brokerage, get instant quotes and news on the market such as earnings, buyouts, and other financial news to help make investing decisions.

You may allocate a certain amount to your portfolio each month directly from your banking account. Another brokerage, Share builders, has a similar plan, however, there is little the stock owner does once the stock is in the portfolio to influence the outcome. there is a provision that allows the shareholder to change selections once a week. Additional shares may be purchased anytime.

Brokers charge a fee for each lot of stocks bought or sold. for instance, if you buy 5 shares at Scottrade, the cost is $7.00 If you sell the same shares, the price is the same. Fees can add up. It's important to invest wisely. In other words research the stock or fund throughly before buying. If you stick to the well established Blue Chip Stocks, especially those that pay a dividend, you have a better chance of winning. Conservative investors do well by not changing this philosophy, once decided upon.

Most investors buy high and sell low. Obviously, panic sets in when the market goes down(as it invariably will) and they grab the money and run. Next day, as the market goes past it's losing number and ends a winner the next day, they once again load up for the next fall.

some sectors do follow the seasons and experienced investors iknow how to use this information to their advantage. the new investor hangs around in the background and waits until he/she lears some of the tricks that keep the saavy trader in coffee money.

This has been a bizarre market due to the world shattering events that saw banking and financial stocks bring down the housing, job, retail, mortqage, automobile and stock markets.

So far, there have been some amazing rallies and some bitter defeats while the market tries to find the bottom. With all the money the government is investing in the stimulus plan, mostly the consensus is now positive but still cautious. As you learn more, you will find that some investors make money in both rising and falling markets, sometimes on the same stock. Called shorting, the process is not at all complicated but Might be a subject for later study. Good luck and enjoy the rewards of hard study, patience, and good, old fashioned luck!

this is not a solicitation to buy or sell securities, nor do I affiliate myself with any stock brokerage, mutual, or exchange traded fund.


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    • solarcaptain profile imageAUTHOR

      mike king 

      4 years ago from california

      Looking back a few years I still maintain that anyone who is willing to put in the time still has the chance, through hard study and due diligence, to be a successful investor.

      Hard study does not include watching CNBC or other popular personalities launch their own prognosticators about market or individual stock direction. The truth is that it is the so called hedged

      Traders who do a lot of nail biting in unsuccessful attempts to time the market.

      Smart investors buy on fundamentals and leave the money in the market. One does not lose when the market corrects. Even in a major correction fundamentally sound securities can and do come back to equal or even higher levels after the correction.

      Trying to time these corrections is what drives profits for brokers who make money both coming and going.

      The most judicious of long term investors, Warren Buffett, may buy during a correction and does so if a stock meets his criteria. He seldom sells and only does so when he can make a good profit.

      No one is suggesting that a new investor jump in with both feet

      And get eaten alive by short sellers and rich hege fund managers.

      Those who can't or won't do the requisite study should invest in something safer that allows sound sleep at night.

      We have learned the hard way that Reagan's bank deregulation led to

      Polices that brought on the world wide depression that no country has fully recovered from in 2014.

      However, the market is at historical highs not bcause of banking fraud as in the past, but because corporate earnings and production are exceeding expectations, lower labor costs, lower medical premiums, and higher productivity are beconing the norm. Additionally, war costs have de-esculated as foreign expenditures

      Continue to ease the budget burden.

      There will be future blips but for those who refuse to panic in a strong and growing economy, invest the Warren Buffett way, and refuse to follow each panic that will inevitably follow rumors and actual world events, returns on investment will follow.

      If you want to invest but are unsure, join a successful investment club or create one of your own. Placing your money in savings or under the mattress is a sure way to see your money gradually erode from inflation. Most mutual funds are in the red or return paltry gains on your investment As stated previously, this is not a solicitation to buy or invest in any particular security. When you sell a stock that is down you will lose some or most of your money. No money is lost until you sell the security below the price you paid less broker commissions

    • William F. Torpey profile image

      William F Torpey 

      9 years ago from South Valley Stream, N.Y.

      While it appears to be a good time to get into the stock market, solarcaptain, there remains tremendous risk for the unsophisticated investor. There's no guarantee that the U.S., or the world, will pull out of the current crisis unscathed. As you point out, most people buy high and sell low. Wealthy investors, who can afford to short the market, and keep a vigilant eye on their portfolios -- which are always leveraged against major losses -- have a far better chance to escape disaster than the average investor. As long as we common folk don't risk more than we can afford to lose, I agree it's a good time to stick one's toe into the water. But there are many potholes on the road to successful investing, which I've noted in a few of my hubs. Stocks rarely behave the way most people would assume they should.


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