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Discover the path to financial freedom with insights on stock investing strategies and market analysis. Explore key principles, stock-picking mistakes, and tips for successful investing. Gain knowledge on stock charts, volume evaluation, and timing buy/sell decisions for optimal results. Delve into the significance of bases and consolidation periods in stock movements. Learn from industry experts and improve your investment skills. Join the Student Investment Association to enhance your financial literacy and grow your wealth.
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“The path to financial freedom” Steven Savickas & Panos Grivakis Student Investment Association
Announcements: • Sign in on the attendance sheet • membership (39$) See Kevin • Ordered 30 new books for paid members • NEW Website: ww.msu.edu/~investors • New forum • Next Meeting Wednesday March 3rd 7:15 pm 119 Eppley – VIDEO TIME! • Sign up in smaller groups 4-5 people. • Survey
Donald's 7 Rules of Success • You have to be born with enough brainpower. • Once you have that, you have to love what you're doing. I've never seen anyone succeed who didn't love what they were doing. • You cannot stop. If there is a concrete wall in front of you, you have to go through it. You can never, ever give up or even think in terms of giving up. • Confidence is a very important thing. But confidence isn't something you just develop by saying "I'm going to do this or that." You really have to believe it. • I love pitting people against each other. My whole life is based on that. It brings out the best in people and the worst in people. If the worst comes out, you don't want them working for you. • You have to remain cool under fire and let criticism roll off you. Good leaders handle conflict easily and bad ones are eaten up by it. • You must work well with others and be loyal to your team. Disloyalty is the worst of all traits. I seldom use the words "You're fired!" in business, unless somebody is really scum and stole from me.
Investing in stocks Caution… • Your going to be wrong • Success doesn’t happen over night • Professional ballplayers aren’t made in five months and neither are successful investors • “the only difference between the successful person and everyone else is determination and persistence.”
Can slIm • I = Institutional Sponsorship: Institutional investors are a major influence on stock prices, so buy stocks with at least some institutional ownership, particularly mutual funds with good performance records.
Volume • Is the actual number of shares traded • Stocks never go up by accident • There must be large buying, typically from big investors such as mutual funds and pension funds • IBD’s “Volume Percent Change column track the average daily volume of every stock over the past fifty trading days shows you how much a stock traded above or below its average.
Volume • Can use Accumulation/Distribution Rating to fine out if stocks are be brought or sold by big institutional investors. • www.Investors.com • http://moneycentral.msn.com/investor/finder/predefstocks.aspx
Stocks we want to discuss • Show stocks with high volume • Name a ticker? • Questions so far?
Words of wisdom from Mr. O'Neil? Stock-picking mistakes investors makeInvestors, especially those uninitiated to the ways of the market, make a lot of mistakes when choosing stocks. William O'Neill of "Investors Business Daily" talks about some of the common ones (other link)
Importance of Charts • Strong fundamentals mean only 60% • Charts illustrate the price and volume movements of a stock • Reflecting demand for it. • They are especially helpful in pinpointing the exact time to get into a stock—or when to get out.
Bases: Price Consolidation Base – The price pattern moves straight sideways and holds tight for at least five weeks, normally correcting 8% to 12% Correction – A pullback or a decline in the price of the general market or an individual stock "The key to big profits is to buy leading stocks and use charts to spot the right time."
When to buy with a base? • You want to buy a stock exactly at its “pivot point” as it breaks out of a sound base with high volume. Don’t chase it up more than 5% past the pivot.
Key Points To Remember • Charts give you a snapshot of a stock's behavior over time. Charts are essential in timing buy and sell decisions. They also provide signals that would be missed if you relied on company fundamentals alone. • The study of greatest stocks from 1953 to the present found stocks were in consolidation periods, that is, they moved more or less sideways, before they leaped and began their powerful climbs. • Bases help get rid of weak holders. This gives stocks the chance to move up significantly when the base is completed.
Do YOU want to learn more? • www.investors.com • IBD Learning Center • Charts • OR look in the Successful Investor book!
What YOU should do! • Develop buying selection rules that let you pick the best stocks, and use charts to determine the right time to buy. • Have a set of selling rules that tell you when to sell and nail down a profit, or cut short a loss to avoid a possible larger loss. • You need a specific method to tell you when the general market averages are topping and headed down, and when they’ve finally hit bottom and turned into a new uptrend.
Why should you join the SIA? For $39 you get plenty of benefits… • Free investment book! • If you sign up 3 of your friends, your membership is free! • Access to IBD $1000+ professional level research which offers technical chart and stock analysis • Investment library of books, Audio CD’s, Cassette Tapes for you to check out! • Access to state of the art trading room! • Learn about investing and the stock market! • Your own Scottrade online account • Professional Guest speakers from top firms. • Great resume builder • Meet new friends • Plan your way to financial freedom!
What do YOU want to learn more about? • Survey • What did you like about tonight? • What did you dislike or was unclear? • What would you like to learn more about?
NEXT MEETING WEDNESDAY, March 3rd7:15 PM 119 EPPLEY VIDEO! Interview with William O’Neil by Maria Bartiromo on CNBC 3.1.04 Maria talks with the most noted and respected leaders in business in this Special Report. She discovers what makes her guests excel and moves them to reveal more of themselves as private individuals, separate from their role as public figures. Bartiromo's guests also discuss the major news of the day in the world of business and beyond. Student Inve$tment Association Steven Savickas & Panos Grivakis Investor@msu.edu http://www.msu.edu/~investor