newbie help needed

[RNRMM2006]

I was using the msn website to check some stocks and I was just wondering what was ask price and bid price, and which one do you have to pay to buy the stock. Thanks for your help.

[thundercat79]

When you buy you pay the bigger number, when you sell you get the lower number. Use limit orders and you won't pay more or sell for less than you want (if that price is reached).

[TheChartGuru]

No disrespect. But if you don't know the basic Bid/Ask price you are not ready to trade stocks. You will lose your money real quick. I would recommend reading Toni Turner's books on short term trading. Her books are excellent and very inexpensive. Read it over this weekend so you get a better grasp of the trading game. Believe me, it's a haaaaaaaaaard game to play if you don't know the rules.

[optimus25]

I agree with chartguru, you definitely have to know the rules. I'm a young investment professional and I'd like to get into options but I'm in the same position as you are in stocks. I'm going to paper trade for a while in options then get my feet wet once I get more comfortable.

You should check out my post on regarding new investors.

Go check out www.clearstation.com to paper trade stocks and read some investing books. Amazon has a great list of books for new investors.

[TheChartGuru]

You dont have to buy a whole library of trading books. Just buy 2 of the:
Toni Turner's books. I found these in Amazon.com

1. Short-Term Trading in the New Stock Market -- by Toni Turner; Hardcover (Rate it)
Buy new: $16.47 -- Used & new from: $16.22
2. A Beginner's Guide to Short-Term Trading: How to Maximize Profits in 3 Days to 3 Weeks -- by Toni Turner; Paperback (Rate it)
Buy new: $10.85 -- Used & new from: $6.47
3. A Beginner's Guide To Day Trading Online -- by Toni Turner; Paperback (Rate it)
Buy new: $10.85 -- Used & new from: $6.35

And Stan Weinstein's "Secrets for Profiting in Bull and Bear Markets"
These are simple read. No complicated indicators and formulas. However, these books are for those interested in technical analysis. You will get a basic course on some indicators and on chinese candlestick reading.

The Guru has spoken

[RNRMM2006]

thanks to everyone for your help and input. signed randall

[deepinwonder]

There are other ways to invest besides short term and day trading, too. Why don't you go on Amazon.com, start looking books up, read reviews, and see what other people who bought those particular books are buying, too. Also think Optimus' recommendation to practice trading without money would be a great idea.

I would recommend reading Cramer's book on investing as well, it will give a good understanding about how to invest using fundamentals and will help keep you from making some newbie mistakes.

[Natural Gas]

Think of it as an auction. The "ask" price is what the seller would like to get for the stock at any moment. The "bid" is what buyers are willing to pay for it. If you bid on the stock with a market order your willing to pay the "ask" price which is always higher (pennies but still higher).

If you bid with a "limit" order then you set the price (your bid) that your willing to pay and the duration that you are willing to let the order stand.
The price of the stock fluctuates all day long with lots of ups and down turns, so be patient. Set your price that you are willing to pay but if you really want the stock now then be reasonable so that you don't find yourself "chasing" the price upward if it goes on a good run or you will miss out on initial profit. Conversely, you may only want to expose your self to so much loss risk after you own it. Then you may want to enter a stop loss price which triggers a sell. But don't start crying if the stock sells and then turns around and soars. It depends on how well you sleep.