Investing 102

[GregWeld]

Originally Posted by chichirone

Still reading as well Greg. Your goading is what got me hooked in the first place and now the repetitive goading is pushing me to do more. Keep it up man. It's much appreciated and educational. Just to read how you look at the stock beyond the charts is beneficial not only in stocks/market but in everyday business dealings.

On another note, I have been wondering what tools are beneficial on the Schwab site? They have all kinds of links on the right hand side of the research page which I just get lost in...corner stock of the day, highlights, pick lists, Morningstar, etc. Most of this seems to be "noise" to me. I have delved into some of it but not sure if you have any suggestions on how to use these links or continue to focus more on the charts, screeners, and comparison tabs.

I have become "comfortable" navigating these tabs but was curious if there was any additional tools or ways to use them you would recommend to us as we look at the research page.

I only use Schwab for looking at charts of companies I'm interested in - and for comparing choices by overlaying one or two companies to see if they march in lockstep or ??

And I use them for the TOTAL RETURN which they show if you know where to find it. Total Return over a period of time tells me pretty much everything I need to know... So I use the chart to make sure it's low on the left side and climbing to the right side -- and the Total Return numbers to help me see and compare one choice over another. Other sites have these tools - but I know where they are and can navigate quickly on Schwab.

Since moving to Sun Valley -- I've only kept a very small amount in Schwab since they have no local office here.... and I use their site over other sites because I like their tools.

I have used their "finders" tools in the past - but usually just for research. I don't - NEVER - blindly buy some company just because I read about them or found them on the top of some list. That's the kiss of death! If you don't KNOW the company and are familiar with it - stay away! I don't care what the number say. The reason for that is you'll be what's called a weak hand holder. The first time the stock hiccups -- you'll tend to sell.... and that's when you lose money. This is one of my top recommendations about investing. You can't buy and hold and add money to your holdings if you're not familiar with them and feel totally comfortable long term.


So if I want to invest -- I look for a couple categories -- pull up a name I'm most familiar with -- then alway scroll down (using Google Finance) to see what other names are considered to be in the same category -- and I start poking around and comparing the 2 or 3 I know - to see if I can find a better "version" of what I started with.... it's how I learn -- and expand my horizon... but even if I find one that has better numbers - if I'm not familiar with them I don't buy. I'll buy the one with slightly lower numbers used for reference and stick with it.

It's like this oil slump we're in now.... everyone got hammered and suddenly. You'll lose money only when you freak out and sell because of being a "weak hand" --- but if you're comfortable with the name - you might tend to stick some more money in when it's DOWN ---- and reap the reward of the rebound.