This guide is meant to be written for a common person without an extensive knowledge of stocks and its universe of technical/fundamental analysis. It can also be consumed by a person who wants to make money off stocks without significant time investment. (Stock trade list link at end of the story)
Stock market trading principles:
- Only invest what you do not need immediately: Stock market funds should be different than emergency funds and should not be needed for (at least) a year, preferably multiple years.
- The market always goes up sure (but is unpredictable): In general the stock market and individual stocks always go up but timing the market is difficult. Hence, its not uncommon to see even the best stock picks suffer significant losses.
- You should never sell at a loss: Contrary to popular belief, you should never sell a stock at a loss (due to 2., your belief it will go down further can be completely wrong). There are exceptions, of course e.g. when you believe a company is going bankrupt.
Stock market strategies:
The simplest one is to buy an index fund whenever (yes you read that right as its impossible to time as per principle 2.). However, while its a very stable and least time consuming strategy, it does not give significant returns. So while a portion of your investment can be in an index ETF (like SPY, QQQ or DIA), its definitely worth trying your hand at stock picking.
However, most of the material out there on Internet/TV gives good but ambiguous stock market advice (starting from long term index ETFs to short term stock picks with target values).
But very few public sources publish specific trades with price and performance that can be measured.
The sheet below captures all the trading ideas with specific entry and exit dates/prices. Please use at your own risk as this is just based on my analysis of the stocks.
Note: not everyday can be a stock trading day as clear trading signals do not emerge daily. However, the trades will be updated before close of extended hours (8 PM ET).