Thread: RL Investing
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Old 08-04-2010, 11:04 AM
Jewce Jewce is offline
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Join Date: Nov 2009
Location: Glorious Colorado
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Originally Posted by to0p [You must be logged in to view images. Log in or Register.]
Best advice I can give you is create a trading account with an online brokerage and toss in 10% of your monthly income, once it builds up invest it in some solid companies, or get risky and toss it in some small caps.
This is definitely a great way to get into it. While you're building up for your first couple purchases, I recommend doing some intensive reading into both fundamental and technical indicators. Mastering the interpretation of these is key to success in investing. Learn what signs indicate a swing or a bounce.

For instance: Assume a golden cross (50day moving average swings above 200day moving average, indicates bullish momentum), and a few days later you see the stochastics oversold and price below moving average price.. technically a great time to buy. Fundamentally though, look at the EPS, beta, daily volume vs average volume to see what people are doing. Technicals are usually a safe way to bet, but you can't always predict what people will do based on technicals alone.