
leahy255
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I would say, find soild companies, One I love is GE! Soild and adapts to the market, no extreme swings, has invested in clean tech, plane parts, trains, even NBC, and pays a decent dividend... You should do LOTs of research P/E is a way to compare how much your getting for your money... Price(cost its quote price is) divided by its earnings( money bring it in baby) some are high like yahoo $90 you pay for $1 that they earn in one year, P/E around 20 is avg... but if people expects growth later they will tolirate a high P/E... they will have predictions of future P/E... dont go nuts with this, if you feel like the company is solid and actually has a plan and good financal shape... good... Avoid oil, or anything that ran up, look for the market that people are missing... I did in trailers, and trains and Katrina happened and trains were in demand as there arent enough truckers and coal demand grows since the energy crisis... Be Creative! Oh yea, when you find good foundation companies (LISTEN TO YOUR GUT) Buy Low as low as you can find it, you will understand the basic price, like ge normally 35 just to ramdly use and it is at 26 and havent been like that in a long time but the markets down and it has no reason to go down, BUY as they rate it, then it may correct to be 35 or 37 you made money... like buying a home and selling higher.. Thats it and good Luck, DO your HOMEWORK! as Jim Cramer says CNBC |