Stock Tips for Beginners?

Stock Trading Tips for Dummies

Self-styled stock trading master Lance Jepsen (Jepson ?) just made 450% on a trade, which made him a profit of $4K in 4 days - hats off ! In truth he got a bit lucky when Roche made a hostile takeover bid for Illumina but he does point out that genome mapping is a hot sector to be in at the moment. After his Illumina success he has moved into Life Sciences (LIFE) - buying options. Options are not exactly what you could call stock tips for beginners but it is worth taking a good look at Life Sciences nevertheless as they are making breakthroughs in genome mapping, so it could turn out to be one of the best stocks to trade given that the sector is currently hot. Stock trading master's video is over at youtube here - -

I know nothing about genomes but here is a picture of an artist's impression of one !

What is a genome?
They will be big in both a scientific and business sense - so there is money to be made.
Of more interest in a general sense to beginners to online stock trading is 'old school chartist's' latest video about where the markets might be headed. Basically he says we are in a 'rising wedge' pattern and that this is usually bearish so we could be headed for a pullback, but we might get up to the top of the wedge around 1340 on the S+P.

Lots of useful info. on how to analyse stock charts again. If you are a beginner to stock trading then you really need to understand at least a minimum about stock charting

For information on basic investing using stock charts see the most basic tip in - Basic Investing in Stocks for Beginners


Stock Markets Next Week

Stock Market Trading Strategies for Next Week

Fascinating insights into what the stock markets may do this week and how the stock market works, in 'stock trading master' stock market report in his video (scroll down for the video). Lots of uptrends and strong uptrends for the first time in months. Lots of 'resurrection crosses' (a good sign - and also known as 'golden crosses') - when a shorter moving average crosses over a longer moving average on the way up.

Whether you're a total beginner to stocks and shares or an experienced online stock trading professional the 'master' is a good mentor and his videos are always full of useful information and an indication of which stocks, commodities or indices to buy.

The major stock market indices have broken out above their October 2011 highs. The S&P 500 has a Resurrection Cross with the 50 day moving average moving above the 200 day moving average.

Institutional traders were buying across all sectors last week, - this can be seen by the TICK closing at 835 (explained in the video).

The strongest sectors for institutional traders were Energy +2.28% and Technology +2.17%

So hats off to the stock trading master for all the priceless information he shares, there are many online stock trading courses that don't do such a good job of teaching beginners what to look out for when trading stocks. If you are looking to learn about the stock market and stock charts then you would do well to check out his videos.

Don't forget also our old friend Warren Buffett - his stock trading strategies are somewhat different and in fact he is not a stock trader as such, but a long-term investor and it was in this capacity that he was busy buying $750 million worth of the UK firm Tesco last week, after the share price slumped 20% in one day. Tesco is the largest retailer in the UK and always makes money, so WB helped himself to a chunk at knock-down prices. The price could fall another 6 or 7% but even at current prices it looks like a bargain. UPDATE : The recent Tesco trading update (June 2012) was very lacklustre - so I persoanlly expect to see a slump down to around 270p at some point, at which point it wil be even mor einteresting than it is at present (stuck around 300p).

See also - One Easy Stock Trading Strategy for How to Trade Stocks


Warren Buffett Buys Tesco Shares

Warren Buffett Likes Tesco

Tesco is the UK's biggest retailer with around 30% of the market, but surprisingly it has just had its worst Christmas for decades. As a result the share price slumped 19% on January 12. This raised eyebrows, as many people thought the fall was overdone. One of those who sniffed a bargain was billionaire long-term stocks investor Warren Buffett. Many people watch Warren Buffett's stocks and shares dealings very closely and indulge in what is referred to as coat-tailing i.e. buying what Buffett buys.

Tesco 10 Year Chart with 200 day moving average

Tesco 1 Year Chart with 50 and 200 day moving averages

After the shock announcement from Tesco, Mr Buffett decided to invest a further 480 million UKP in the company (750 million USD), increasing his stake from 3.21% to 5.08%. He made the move on January 13 the day after Tesco's anouncement.

Mr Buffett is of course a long-term investor and is notorious for not trying to time the market, so there is nothing to say that Tesco won't fall further, but if it does then it is quite possible that Mr Buffett will merely buy some more. He loves stable companies that make a profit and pay dividends. He also likes to hang on to his buys for a very long-time.

Some of the directors of Tesco have also been buying. Ken Hydon, Non Executive Director, bought 30,000 shares on 18 January at 320p per share. The Director now holds 60,093 shares representing 0.00% of the shares in issue.

Richard Broadbent, Chairman, bought 30,149 shares on 12 January at 330p.

Not big buys but better than nothing.

Personally I am waiting off to see if the price will fall back even further to around 270p :-)