I lost 2.000$ of my retirement money when they plunged recently.
Pls do this:
1. Buy different industri type of stocks (oil/pc equip./banks/food etc.) to spread the risk.
2. If they fall and fall then sell. They can allways fall a lot more. Then You can buy them again.
3. Check out companies on smartmoney.com: http://www.smartmoney.com/eqsnaps/?stor ... =hp_search
Are they making money?/ how much per employee?/ how much last year? etc.
4. Buy when RSI is low (~20) and sell when RSI is high (~80) RSI = Relative Strengh Index
5. It takes some time monitoring (every day) to avoid loss.
6. Sometimes a stock will drop/rise 50% i 5min. Nothing You can do about it.
7. Non US citizens have to take into account the value of the Dollar also.
8. The P/E ration is impotant. It tells how many $ Your have to pay to get 1$ in earning. The lower the better. P/E = Price/Earnings
If 1 Nvidia stock cost 20$ and earnes the company 2$ the P/E = 10.
Just some tips from a novice. It's not easy
Do it at Your own risk (as do I).
Edit: I used to have these stocks, but sold them not long ago (they produce car petrol from corn).
In 1 day they dropped 70%:
Not fun for the stockholders