Picking Stocks to Trade

Any suggestions on some good stocks to trade if you're just starting out with $2500 and trading in $1200 lots? Most of you trade the popular momentum stocks, but they are expensive, especially early in the month. Any good ideas on stocks that move and can be used to build up one's account?

You are going to get your behind handed to you by the stock market if you use $1200 out of $2500. I know, because I have had mine handed to me. Use less contracts.

That 2500 was the sale pitch. You need atleast 5k to 8k to get your feet moving. Anyone telling you different Im feel sorry for them.

Check out the Dow 30 stocks. AT&T (T) moves well and is a personal favorite.I would suggest you trade just one contract and focus on being right rather than profit.

I couldnt disagree more. $2500 is an excellent starting point and a place where you could buy 1 maybe 2 contracts and be comfortable making trades so you would grow into larger positions.Im not sure if anyone was like me, but I lost that $2500 several times before I got myself out of the way and began treating it like a business and not a get rich quick hobby.

If money is the issue you can always use the mini options for AAPL, GOOG, and AMZN.

BCT

WLT and VZ. I would not use $1,250.00 though. Stick with 2 contracts and build slowly. Practice these first! And I mean PRACTICE really hard. These 2 can be in today and out today. Remember ALWAYS practice before real!

I practiced 1 year and thought I was ready. I lost most of my basket and returned to practice. I then made a rule that whatever I lost I had to repay my account. That made me practice more because I was giving up a lot of "things"...like eating out, movies, clothes, and even Christmas and birthday presents. That's when I really got serious and read GW's book list.

Close to expiration Friday you can get some of the heavy hitters.

If a stock is close to one of the out of the money strike prices and the chartsa re telling you it would soon be in the money buy 2 contracts...but always practice this before applying. Get good at your choices before EVER TRADING! Just a warning!!!



Edited 1 time(s). Last edit at 10/01/2013 08:05AM by Darcy2.

I agree with Darcy, 2 contracts max... I'm playing with 3k, I've made $ and lost it... so when I get 3 wrong in a row I stop and go back to practicing b/c something is wrong... either me or market conditions for my indicators... (usually me... pretty much always) with that small a pot, never go more that 1/2 in on anything... if you would need to, you don't do it... practice it instead.. if your playing short charts I would always get in the money options and try to stay away from options expiring the same week you are in, theta kills even if the stock moves the right way...

here is a list of some top movers from the past 6 months, note that some of these suck for options trading, they have big spreads or are thinly traded making small charts useless... I narrow down trades pretty quick at open using GW charts, then its up to the E charts to further hone in on potential

PCLN
GOOG
ISRG
MA
AAPL
REGN
NUGT
CMG
TSLA
NFLX
EQIX
AMZN
LNKD
Y
MTD
BIIB
AZO
DUST
MELI
NEU
BIDU
Z
KOLD
MIDD
V
TDG
CF
SAM
ZSL
GWW
PXD
SHW
BAP
PCYC
DSLV
TNH
CSGP
ADS
AEGR
MDSO
BLK
USNA
SSYS
ALXN
CLVS
GTLS
ESS
CLB
CEO
XONE

My suggestion is, do not trade a dime of your money until you have been hitting consistent winners in practice. If you are not winning in practice, you will lose with real money-and more quickly. $1200 is a good starting point, if you are accustomed to winning in practice. Take these suggestions from people who have been there over and over again. Unfortunately, most people want to see for themselves and test the waters. Guess what happens? Yep, you lose your basket as all of us have.

Point well taken regarding $1200 being too small of an amount, but if you are getting your feet wet, that amount is great. I am sure that is what Gary was trying to convey. If you are broke, you will appreciate the 10-20% you make on that $1200. I will repeat an earlier statement, "If you are not winning in practice you WILL lose your money-and more quickly.