Im a fish at investing , answer some questions yo?

[Spleen]

Total noob. What is after hours trading?

Are all stocks available to after hours trading?

Can anyone do it? Why would they want to?

Is this why a stock may open for more than it closed for? Are there other reasons for the stock opening for more than it closed for?


Is there a respectable forum to browse regrading stock market stuffs? ( mainly small dollar speculative stocks)

Where would one begin to due DD on small market specualive stocks? ( is there a name for this so I can stop saying small dollar specualive stocks) I do not necessarily mean crapshoot penny stocks fwiw.


thanks for any help, I realize that these same questions get recycled time and time again like most of the other forums, maybe someone will have the time to help. Also if you help me I will provide 10 minutes of coaching on how to beat $6.5 SNG's [img]/images/graemlins/grin.gif[/img]

[Evan]

http://www.google.com/search?q=What+is+a...lient=firefox-a
http://www.google.com/search?q=Are+all+s...lient=firefox-a
http://www.google.com/search?q=Can+anyon...lient=firefox-a
http://www.google.com/search?hl=en&c...amp;btnG=Search


Please at least try googling this stuff before you post it here.


As for your other questions,
[ QUOTE ]
Where would one begin to due DD on small market specualive stocks? ( is there a name for this so I can stop saying small dollar specualive stocks) I do not necessarily mean crapshoot penny stocks fwiw.

[/ QUOTE ]
What is the difference between a "small dollar speculative stock" and a penny stock? I've never heard that term before and I assumed you were talking about the crap penny stocks that my spam box is filled with emails about.

You should probably examine why you're interested in "small dollar speculative stocks" before you ask specific questions about them. A stock that trades for $10 can be just as "speculative" as a stock that trades for $1.

[kimchi]

[ QUOTE ]


Is this why a stock may open for more than it closed for? Are there other reasons for the stock opening for more than it closed for?



[/ QUOTE ]

Opening gaps, or when a stock opens higher or lower than it closed preciously, are often due to a build-up of buy/sell orders the night before. Marketmakers aren't particularly charitable and will happily fill overnight orders to their benefit and trade against you.

The opening prices tend to be a reflection of the dumb money, whereas closing prices are more attributable to the smarter money.

[Spleen]

As for your other questions,
[ QUOTE ]
Where would one begin to due DD on small market specualive stocks? ( is there a name for this so I can stop saying small dollar specualive stocks) I do not necessarily mean crapshoot penny stocks fwiw.

[/ QUOTE ]
What is the difference between a "small dollar speculative stock" and a penny stock? I've never heard that term before and I assumed you were talking about the crap penny stocks that my spam box is filled with emails about.

You should probably examine why you're interested in "small dollar speculative stocks" before you ask specific questions about them. A stock that trades for $10 can be just as "speculative" as a stock that trades for $1.

[/ QUOTE ]

Ok I guess the after hours deal is just more time for people to gamble it up. If is anything more than that( at least to the noob gamblor) let me know. Ok that question settled.

So a penny stock is a penny stock, no matter if it's crap or not? I have only heard negative things about " penny stocks" I assumed not all were garbage. I do realize that ppl do make monies on garbage stocks, I am trying not to be confusing, although I am confused. I suppose the question I have been miserably trying to ask is this: How does one determine what is crap and what is not? Specifically the stocks which have lower share prices with some upside as opposed to the ones that are just being "pumped and dumped" ( I learned that with your google links).
I understand that the ability to differentiate between the two is the goal. Where do you begin to do research on these things. I don't have a ton of money to blow but I have some, enough to gamble it up on a few specualtive stocks, but I want to try and obtain even a small edge before I throw darts. When I begin to look up information on small scale stocks I am bombraded with B.S. and the spam you refferred to, this is what I want to avoid. I am usually pretty good at navigating the language of the 2p2 repsonses as opposed to other message boards so that is why I came here to look for a jumping off point.

I don't have the time to follow the patterns and all that all day long so it would be a buy and hold situation. A few hundred shares here and there, if nothing else to give something for my little brain to check into at night when I get home from the circus.

I reread my OP and yea it was pretty lousy, but I figured I could wade though most any responses and take something away, even the d-bag responses are littered with some helpful ideas if you can filter the B.S.

So is there a reputable forum or site that isnt filled with "bashers" and "pumpers" and fluffers or whatever else I should look into?

[Jeff W]

Spleen,

To start, a better way to invest in Micro Cap stocks may be via a mutual fund or ETF. PZI PowerShares Zacks Micro Cap and BRSIX Bridgeway Ultra-Small Company Market will give you the returns of Micro Caps while eliminating the hassles and diversifiable risks of investing in individual microcap stocks. If you go that route, I advise you to buy and hold for the long term--don't sell off after market ups and downs. Micro Caps are the highest return and highest volatility corner of the market.

[scott1]

[ QUOTE ]
Where would one begin to due DD on small market specualive stocks?

[/ QUOTE ]

[ QUOTE ]
I don't have the time to follow the patterns and all that all day long so it would be a buy and hold situation.

[/ QUOTE ]

"I want to buy penny stocks" = I want to Gambool!

"I want to buy and hold" = I want to look for a good value stock and hold it until that value is recognized and I get some return out of the market.

You're saying two different things. Jeff has it right if you really want to invest in penny stocks, just buy an index. But why did you get interested in penny stocks in the first place?

[Evan]

Penny stocks are generally crap.

More importantly, I don't think you understand why you are interested in them.

[Spleen]

[ QUOTE ]
Spleen,

To start, a better way to invest in Micro Cap stocks may be via a mutual fund or ETF. PZI PowerShares Zacks Micro Cap and BRSIX Bridgeway Ultra-Small Company Market will give you the returns of Micro Caps while eliminating the hassles and diversifiable risks of investing in individual microcap stocks. If you go that route, I advise you to buy and hold for the long term--don't sell off after market ups and downs. Micro Caps are the highest return and highest volatility corner of the market.

[/ QUOTE ]

The process by which these are traded is the same as a stock? I only have experience buying a stock though a etrade/scottrade type of place. It was simple enough buying a stock though them , relatively the same process I take it? Naturally I will look into the specifics of each site but I was curious if it was similiar. Thanks for the point in right direction.


[ QUOTE ]

"I want to buy penny stocks" = I want to Gambool!

"I want to buy and hold" = I want to look for a good value stock and hold it until that value is recognized and I get some return out of the market.

You're saying two different things. Jeff has it right if you really want to invest in penny stocks, just buy an index. But why did you get interested in penny stocks in the first place?

[/ QUOTE ]
It does seem like two different things but I guess
I would like to find some sort of middle ground between the two. I am intrigued by micro cap stocks because I feel like they are the highest risk/return available for a small time low budget guy like myself.

[pokerja3]

"A few hundred shares here and there, if nothing else to give something for my little brain to check into at night when I get home from the circus."

By far the funniest sentence I have read in a month... I laugh harder every time I read it...Good stuff
Sorry I can't be of much help to your questions as I am a noob too, but gl

[googleit123]

Yeah googleit.

Making money in the stock market is a LOT harder than it seems. You have to take into account your risk tolerance and goals. Trading speculative stocks (x<$15) can be very risky. Make sure you perform DD before trading. I recently bought a stock in the mid 20s to see it run up to 40 then back to the mid 30s where I ultimately sold. They had a profitable quarter and now the stock is trading mid 40s. If you have to take the speculative route I would know where the general market is headed, in particular, the small caps. Perform an analysis of the company relative to the industry. How is XYZ Corp. performing in comparison to 123 Corp.? Look at profit margins, growth rates, P/E ratios, long term debt, cash flows (cash is king) and check out the chart. Look at moving averages and volume. A stock will generally break out on large volume.

If you do not have the time to follow the stock I would check out mutual funds. Investment professionals pool together the small guys money and invest it. You gain diversification (less risk) than if you were to just invest in one or two small caps. Google mutual funds and do some research. Morningstar is a good place to start.

Follow this link for beginners:
http://beginnersinvest.about.com/cs/...aatp110101.htm

After hours trades are just blocks (block = 100 shares) of stock after the market closes. Some stocks have trades AH and some do not.

Like poker, in investing DISCIPLINE and PATIENCE pay off. And do not take stock tips!!! Do you own DD, please!