Making Money in The Stock Market

Hi, my name is Nick Mudgett. I have been playing the stock market every since i was fifteen. So far I have been completely successfull, even durring the passing recession. Many people are scared to get into the stock market because there is risk, but if you look at it closely, there is risk in everything. Why not try to make money by playing the stock market. You may be asking how much money? Well, it all depends on the type of stocks you invest in and when you invest in them. For example, in the last two years I have used my money wisely and made around 5000% on my money. I do this by researching stocks.
There are two kinds of stocks to invest in. Penny stocks, or corperation stocks. Corperation stocks are stocks like Wal-Mart, McDonalds, etc. You know, businesses that will probably never go out of business. Many people like to invest in these stocks, but you will make no money investing in these stocks. For example, If Wal-Mart's income for an entire year is $1 billion and they start selling a new product that makes them $1 million dollars per year there stock will go up only about .001%. Now this is not much money you would be making.
The other kind of stock to invest in is a penny stock. Penny stocks are small businesses. They rage from $0.001 to $5.00. Penny stocks are more risky, but this is how the stock market wizards make their money. For example, lets say a penny stock's income for an entrie year is $1 million and if they come up with a new idea (like alexander bell came up with the telephone) and this idea made the business another $1 million per year, this means the business is now making $2 million per year. Which statistically means the stock price should double. Which means if you invested $1000 it is now worth $2000.

Now you may be asking, how do I start? Well let me tell you, it is easy. Below are steps to get started:

1. First you need to find a stock brocker. It can be locally or online. If you decided to have an online brocker, I reccomend TD Amertrade. The good thing about having an online brocker is that you can invest in just about any stock and the purchase fee is cheaper than a local brocker. The good thing about the local brocker is that you can get help
finding what to invest in. Me personally, I like online better and doing my own research, but it all depends on the person.

2. Once you have regestered with a brocker, you need to find some stocks. First you need to decide if you want to invest into a corperation stock or penny stock. If you want to invest in a corperation stock, just pick some out you like and buy them, not much to it because most of them are stable. But if you want to make money then go with a penny stock. Now you need to find a penny stock. Some sites below may help:
http://www.thehotpennystocks.com/
http://www.drpennystock.com/
http://www.thebullreport.com/ - Regester new email(stock info only) and sign up
http://www.superhotpennystocks.com/ - sign up with new email
http://www.moneytv.net/
If you continue to read my articles, I will occasionally write articles on good stocks.
Now look at these sites and find some stocks. Write some down on a piece of paper and then go to yahoo.com/finance. In the top, next to the button where it says "Get Quotes", type in the symbol. The stock's summary will come up. The summary shows the price, the change from previous day, 1-year estimate(if one), 52 week high/low, etc. All of this can be used as an advantage. Scroll down and you will see the news. You can read this to help your personal oppinion on the stock. If you look towards the left you will see a navigation bar. Other things you should look at are the profile, which will contain the industry, company's website, and a description about the company. Look at the message board and read some of the messages. Now before making a decision at the message board, you must realize some people try to make the stock go down and type false things to make you sell. These are called bashers. They do this to get into the stock at a cheaper price. But if everyone on the message board is bashing the stock, then it means it is probably not a good stock to buy. You can also look at the financials(Income summary, Balance sheet, cash flow) This will tell you how much money the company is making/loosing. If you scroll down on one of these pages, there will be 3 numbers which are 3 years. If the number is in parentheses, it is negative. If it is not in parentheses, the number is a positive number. With penny stocks do be afraid to buy into the stock because it has a negative financial. Most penny stocks spend more money than they take in so it makes the financial negative. They spend more money so they can advertise and make money.
Now if you can find a penny stock that is inventing or making new product(s) then you should invest in it if the product is something interesting. The best kind of penny stock, in my oppinion, is a pharmaceutical penny stock because they usually are always trying to make or come up with new medicines/technology.

3. Pick a few stocks which you are convinced will make you money and go ahead and buy them with your brocker. Once you buy them, you should constantly check on them to see when to sell because they could go down or up. If they start to fall, unless you are convinced that they will never go up again, keep them. If I were you I would check my stocks at minimum 1 time a week. I check mine several times a day, that is how I make money. I sell when I make double or tripple and eventually it will go down again and i will buy it back. This is called day trading.

4. Finally you must be patient. It may take one day to make lots of money. But in some cases it may take years. You may eventually want to sell your stock, if it not going anywhere, and invest in a new one that might make you money faster.
Thanks for reading my article. If you have any personal questions on the stock market, or want some tips, go ahead and email me at mudgettn@yahoo.com. Good Luck, and Enjoy life, it's too short not to!