Tips for Stock Investing?

Hi Zohair, great to hear you want to start investing :) Now, first off, I appreciate the fact that you've done some research, as well as picking your type of trading (long term). That being said, I'd like to share a few things from both my trading experience, as well as some things I've learned from big investors.

  • First, never, and I mean never trade penny stocks. Unless you have mastered how to manipulate others better, penny stocks are pretty much the best way to lose an easy 50-99% of your investment (especially in the long term)

  • Second, don't follow headlines and news more than price action. Focus rather on the price of a stock compared to headlines. Many think, "Oh my company just released a great product, or, they released plans for massive foreign expansion, I should buy into it." Problem with that cases is that those factors have already been added to price. You're never gonna beat the big dogs to news, unless you hold and remain patient throughout the ups and downs.

  • Third, mid-caps are, IMO, the best level of valuation to invest in long term. Now, it's definitely true that you need to pick some large caps as well (Great picks: DIS, AAPL, GOOG, etc.), but mid-caps are fantastic for solid growth over long periods of time. Pick companies that stand as both leaders, and that are set in emerging industries. This goes off a lot on the principles set by William J. O'Neil, who used an acronym called CANSLIM to pick winners over the past few decades. Though I encourage your own decision making, I will however provide some of my picks to watch (as well as some ones I'm currently trading).

Low Risk: * (OXY) Occidental Petroleum Inc. (Holding) * (DIS) Disney Inc. * (AAPL) Apple Inc. * (GOOG) Google (Strong Buy) Mid-Cap: * (CSIQ) Canadian Solar Inc. (Holding, up 41% since Jan.) * (CRC) California Resource Corp. (Strong, if you want to play oil) * (QRVO) Qorvo Inc. (Strong Buy) * (INTU) Intuit Inc. (Buy) Small Cap: * I don't have any recommendations as of now. Personally, I usually avoid small caps unless I plan to swing trade (which you're not planning on doing) so I won't discuss holding any long term.

Anyways, I hope some of this helped. Just remember, patience, research, and diversification are always key factors to becoming profitable in the market. Hope I helped, and best of luck!

/r/investing Thread