You may have $10,000 you want to buy shares in a company like Intel. But when a funs manager decides to take a position, it can be hundreds of thousands or millions. You may also like a stock and tell your friends. But an analyst will issue a buy recommendation and it appears in market news sources and read by many thousands, who then in turn might act on that recommendation.
For me, I like to buy blue chip companies that pay a decent dividend and hold over the long term (but selling and buying partial positions to take advantage of market conditions as they happen). using Intel as an example, I may buy 1,000 shares, then sell 200 when it goes up 10%, then another 200 another 10% after that...and then buy more once it goes down. When you establish a position, you should also set buy and sell triggers in your mind, adjust them as needed, but stick to them. over time, you will hopefully make money not just from the dividends but also from the buying/selling you do while riding the ups and downs.
Also, pick companies that you understand the business they are in, how they make their money, and what things can impact their business so you can make well informed decisions. As an example, If you are looking at a company that sells a product that depends corn or wheat (lets say General Mills who likely makes your cereal), you need to keep an eye out for corn and wheat prices, the weather in those regoins to see if the crop was damaged, new counties entering or leaving the grain market, crop disease outbreaks like what Russia had in what a couple years ago, etc...Good luck.
P/E, while a useful ratio, is one of the weaker ratios. Earnings can fluncuate widely depending on a number of factors (some outside the company's control). Consistent ROA/ROE above industry average, P/B and P/Cash are much more useful.
Also don't recommend selling your stock for a loss, unless the company's fundamentals change that make it not such a good investment anymore. No reason to sell for a loss just because the price dropped. The market randomly fluctuates and will come back up - your new stock is just as likely to drop after purchasing it.
Check out www.thestockmarketoutsider.com - I think it'll give you the help you are seeking.
What are your investment goals? Are you saving for retirement?
The stock market isn't really a place to "get rich quick."
You need to understand your own tolerance for risk and it sounds like you do not have a high tolerance for risk. (Two days is nothing if you are saving for retirement,) Individual stocks might not be the right answer for you. Consider investing in mutual funds or Exchange Traded Funds (ETFs.) You will be able to diversify your investment with just a single purchase. This will help lessen the volatility when one or two stocks start to fluctuate.
You might also consider stocks that pay a dividend. If the stock goes down you are still earning money from the dividends.
I've looked at everything and taken every tiny detail into consideration but I still feel like it's taking a shot in the dark without the smallest amount of moonlight to help me see the future.
I've looked at the Bid and Ask prices, the Market Cap., the P/E Ratio (which I feel like that doesn't have any relevance to the future of the stock, really. As I've read in some article about the P/E Ratio, "You're looking forward to the stocks future, not it's past" but I digress) I look at every single detail about the stock but I still may have a loss from it. I bought FSL two days ago and it's fallen a few cents since then and I've decided to sell it for another stock. I figured it would have been a strong asset because it's before only come up over a period of days, weeks, months, and even a year and five years.
Maybe I'm just not being patient.
Please give me any information that may help me invest more wisely.
I already consider all of the information available, really. But I still had a loss!
