1. Your Questions About Invest In Stocks
Michael asks…
Which companies are good to invest stocks in?
I'm doing a project for school. We have 50,000 dollars in fake money to invest into companies.
I need someway of checking each day to find out if I gained or earned money in the companies
I invested in. Help?
Steve Winston answers:
....just go to yahoo/finance..... Where you see a box marked " quotes"...you enter the symbol of
the company you bought stock in... If you don't know the symbol...use the " symbol look- up "
function.
If you are looking for companies or stocks ..just for the project...try BEXP ( Brigham Exploration
Co ).... Doing very nicely lately........ Or see if you can invest in ETF's like UYM..( materials )...or
EDC ( emerging markets )......they are ' leveraged" meaning they gain two or three times the
daily percentage that the sector they are invested in..(.good for fake investing !!!)
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2. Lizzie asks…
What are some good companies to invest stocks in?
I'm doing this thing at school where I have $100,000. what are some good stocks/companies to
consider investing in?
Steve Winston answers:
The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare.
These are DEFENSIVE stocks that will survive through good and bad times. Most of my
positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark,
Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the
state of economy. Many of these companies survived through the Great Depression.
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3. Susan asks…
Would be a good idea that i invest stocks in wine companys?
I think investing in wine compnys would be good because when people are depressed they
drink, and when people are happy and want to celebrate they buy wine. So i need your advice if
i should invest in wine companys.
Steve Winston answers:
First, take 6 months in learning about stocks and trying it out with fake money in a stimulation
web site like Yahoo! Finance.
Www.finance.yahoo.com
The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare.
These are DEFENSIVE stocks that will survive through good and bad times. Most of my
positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark,
Exxon Mobil, Walmart, Costco. Everybody's got to eat and wipe their butts regardless of the
state of economy. Many of these companies survived through the Great Depression.
That's the benefits. You can sleep at night knowing your money is doing well. There are NO
guarantees that you won't lose money. It's just that these stocks are the best. They pay good
dividends too.
If you're new to stocks, DON'T DAY TRADE. You'll a rookie in a world of professionals. I tried
day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first,
making about $30 a day but I was way over my head. My luck didn't last long and I had to
rethink my strategy.
Besides you can't do much with $100 in the market. Day trading involves A LOT of commissions
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4. to the broker. With all the commissions deducted from each trade, you'll be lucky if you only lose
half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100
worth of fake money and play it in the stimulation format. You'll see what I mean by losing
money every easily.
Good luck.
William asks…
How can an F1 student invest stocks here in the US?
I'm an international student (F1 visa) currently working part time on campus. Since my major of
study is business, I am interested in stock investing. Does anybody know what form should I fill
in before I can register an account in online brokerage such as e-trade? Also, if I gain from
trading stocks, should I file a tax return (such as 1040nr)? Thank you
I have already had my SSN
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5. Steve Winston answers:
Since you have your SSN, all you have to do is open an online account and fund it with your
initial deposit in US money. You may probably not be able to complete your online application
and may be asked to mail in a copy of certain proofs of identity (driver's license, F1 visa, etc.).
Comply with their request and you are set to go.
You probably have to complete a tax form 1040NR, because you have US earnings from which
tax withholdings are made in excess of your tax liability and you may get a substantial refund of
those withholdings. You will also have to declare any dividends received and any profits/losses
on your investments.
Ken asks…
What's the best company to invest stocks now?
Sep/Oct 2010. What's some of the best choices in your opinion?
Steve Winston answers:
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6. As others have said, you don't know anyone's qualifications here, or anywhere on the internet.
So take any stock picks you receive as ideas only, and do your own research on them.
Also, remember that most stocks will follow the market no matter how well the company or
industry may be performing in the real world. So if the market falls, but you invested in a very
strong company, there is still a very good chance your stock will fall with the market.
Here are some picks that have retained good positive trends and have strong company
fundamentals and outlooks. If the market continues to rally, these stocks will likely continue their
bullish trends.
APKT, BIDU, ASPS, CMG, CTSH
James asks…
Do you pick your own stocks and invest in the market?
What percentage of people do you think pick stocks, invest in the market? I know a lot of
people are in the market through 401K and mutual funds. But I was curious what % actively
research their own stock pics, and manage their own portfolio (the U.S.)
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7. Steve Winston answers:
About 20% of households in the US own stocks directly. About 10% of households own 85% of
all stocks.
Carol asks…
What are some great penny stocks to invest in for a couple of
years to make good profits?
I invest in stocks through Share Builder. I have made money in stocks but small cap stocks
are hard to tell. What small cap stocks are a great investment?
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8. Steve Winston answers:
Siri SirisXM 52wk high 2.75 low 0.05 now, you have to look it up it's still on the Nasdaq around
.40
Mark asks…
What are some good stocks to invest in? Short or Long Term?
I have about $400 I want to invest into stocks but I want to really see that money grow. I'm new
to all of this and have a sharebuilder account that I've never used. What are some good stocks
that have been showing positive outcomes? Advice woud be great.Thanks.
Steve Winston answers:
Very conservative--BAC, SWZ
somewhat less conservative--COP, GAM
somewhat speculative--CHN and CHL but there is more opportunity for growth.
Even more speculative-IIF but also great opportunity.
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9. Wild speculation-VWSYF and LQMT
All are long term. I do not believe short term should be considered by investors.
George asks…
Is it a bad idea to diversify invest all your money in stocks?
Is it a bad idea to invest all of your money in a diversified range of stocks? Or should you
always have some uninvested cash at hand? Currently i have 60% invested in stocks and 40%
unused cash. Should i invest this 40% in more stocks or just keep it in cash?
Steve Winston answers:
There's a few theories about that involving a maximization of geometric gain. When simplified to
a binary situation, it's known as the Kelly Criterion and is an interpretation of Claude Shannon's
information theory which is the foundation of digital telecommunication so the math is used
every day in the Internet. Basically, it determines an optimum level of risk.
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10. In a simplified scenario of a coin toss where if you won, you won twice your wager plus the
return of your wager but if you lost, you lost your wager, you would have a positive expectation
in that you can expect to win $1.50 for every $1 that you lose. Therefore, if you risk nothing by
betting nothing, you gain nothing, for every dollar you risk on your bet, you can expect a greater
return but if you bet everything you have, you will lose everything with the first loss. The Kelly
Criterion says that in this coin toss, your maximum gain will be when you bet 25% of your
portfolio and keep the rest for future bets, if you bet 50% or higher, you will lose money due to
volatility and eventually lose everything. Now if you could bet on two such coin tosses, the
concurrent Kelly calculations says that the optimum is 21% on each toss which is a total of 42%
of your portfolio.
Therefore, the more you diversify on independent risks, the more of your portfolio that can be
safely invested. The trick is determining how much to invest in each stock and how much to
leave in bonds which are by definition uncorrelated with all stocks as stocks are never truly
independent risks. With a coin toss, that can be calculated, with stocks, it's not so easy to
determine.
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