So, what stock should you buy?

Find one that has a good story. That has high hopes of future income, and has just been placed in the spotlight with talking heads on CNBC, etc. talking it up. The more exposure, the better. Make sure there is plenty of volume of stocks trading hands. And most importantly, the price is constantly moving up.

Upward stock movement is caused by perception of future expectations.

Watch it like a hawk, because one day soon, weeks, months, maybe a year from now. It's probably going to crash and die. Try to get out at what you think might be the top. (ie learn how to identify a top.)

Oh, and don't buy an IPO (Initial Public Offering) stock. This stock has just started trading recently. Almost always goes down, and it has no past history of trading, so you have nothing to base it's future on.


Edited by CatBrat (10/03/12 05:49 PM)