Stock Market Tutorial #5 Financial Basics

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A stock market investor’s guide for beginners. Dogs of the Dow, Dead Cat Bounce, Numbers vs percentage Stock Market Tutorial #5 Financial Basics

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Comment by Featureman

You are welcome. Thanks.
Comment by saravanassn

Great tutorial…
Thanks Tom…
Comment by Featureman

Thank you.
Comment by StockMarketVideo

GREAT VIDEO! Thanks for sharing!

Happy Trading!
Comment by Featureman

Not the company, the stockholders lose value. If a stock is $100 and it goes up 60% it then is $160. Next year it goes down 50%. That is one half. The stock then is worth only $80. Over the two years, up 60% and then down 50% means the value of the holding is down 20% for the two year period. Use any number it will be the same percent. Thanks.
Comment by hasanmalik42903

dear Tom. I tried to understand but was in vain about company losing money if they are up 60% one year and down 50% following year….. how can they lose money? many thanks and great effort from you for new learners
Comment by faahimsathak

Hello. Thanks a lot for the video.
But can you give me 3 important factors before buying a stock!
Please give me some important factors, since i am planning to invest in Hong Kong stock market.
Comment by Featureman

That is why you want to study the market for a year at least before investing. If there is a fundamental principle it is to not lose your principle. Buying low and selling high is good. Buying high and selling higher is good. Study “window dressing, mutual funds” to find out how mutual funds buy high priced stocks near the end of a quarter to make investors think the fund always had the upwardly mobile stock. You probably won’t be robbed if you learn what happens in the market.
Comment by 2006scottw

hi. the most fundamental principle in stock is to buy low and sell high right? but if everyone sets out with that in mind then when everyone buys low then who do you sell them to when they are high, bearing in mind everyone has the mindset of buying them low? is it like theres 20% of people on the stock market robbing the other 80% who dont have a clue? i mean who is it who buys them when they are high and seemingly dont have any value to the buyer? tnx
Comment by Featureman

It is best not to buy stocks until you do a year of research. Start at any financial page on the internet. I often use Yahoo Finance for research. Check the companies that advertise a price for stock purchases. Each company has different requirements. Do not invest unless you know what you are buying. Good luck.
Comment by JeiiEra

where do you invest? what website do i go to start investing, i know zero about stock investing
Comment by Featureman

Thanks.
Comment by MrSoClutch

I started reading the book “The Intelligent Investor by Benjamin Graham”. I’ve learned so much and haven’t even read half of it. It’s great so far, I recommend everyone new to get it.
Comment by Featureman

Thank you. I noticed most stock market tutorials were about day trading and options and speculative trading. My is about how to start an account and what to look out for. I would never say what to buy or sell as far as individual issues. I enjoy making tutorial videos about subjects. Thanks.
Comment by bbeckham83

Thank you sir. My only complaint is that there’s no #6.
I don’t know what motivated you to make these videos, but thank you.
Comment by Featureman

Thanks. Almost any financial page will get you started with information you can learn. I use Yahoo Finance most often but there are many others. Just choose some stocks and research everything you can about them. Also check various brokers to see what their requirements are for when you decide to enter the market.
Comment by TermsOfUseExpired

Hi, i just wanted to thank you for your hard work. I learned a lot from your videos. Do you suggest any books, websites, videos, etc that will help a beginner enter the market?
Comment by Featureman

Thanks. Jim is a bit loud.
Comment by goldenchild3079

Featureman you are way better than that screaming guy on TV. (Jim Cramer)
Comment by Featureman

Hi. Lehman was up a lot again today, but the tick was down, which means the price was going down at the end of the day. It might surge upward again tomorrow but I would guess it to go down because it traded so many shares during the past two trading days. That could mean a lot of specualtors who bought at a lower price than today’s close will have sell orders in for tomorrow morning. I would not invest in it. Yahoo expects the price to be $8 a share in one year. I doubt it. I could be wrong.
Comment by MrSoClutch

But what if I bought some shares for a couple a days to a week or so. Not very long term, just to make a little profit. Because it looks like it can only go up based on how low it is now.
Comment by Featureman

Hi. I personally would not touch Lehman’s stock at this time and probably not ever. It is a stock that is at 15 cents now and it usually is at a nickel. It does not trade on the big board. The specualtion seems unwarranted. It is possible someone knows something good but it is a big secret. I probably will sell all my holdings by December 31 as far as paper issues are concerned. I will invest in something more tangible. There is always a bull market in some stock or fund. Good luck.
Comment by MrSoClutch

I’m 18 years old and I just started in the stock market. I have watched all your videos and they are really helpful. I am going to open an account, I was thinking scottrade. Is that a good one?

Also Lehman Brothers went up 200% on Friday. The volume also went up from around 2,500,000 to 73,000,000. How is that possible? How could people have known to buy all that?
Comment by Featureman

Thanks. It is good to start young if you can afford it and if you don’t lose sleep over a bad day or bad week or bad year. Good luck to you and thanks again.
Comment by Drop15

Nice couple of tutorials you got here. I just turn 18, but only during last year , I found this new world. Actually I didn’t wait a year to invest 6 or 7 months perhaps, not more than that. I hope in a near future, you’ll post more videos, about international stocks. Thank you very much, good luck with all your stocks, greetings from Portugal