STOCK TRADING 101 .com

Specializing in stock trading information 

Part One:  A stock trading course looking at Dell Computer

The first step to stock trading is to gather a better understanding of the right stock to purchase is to look at a test case of one of the greatest stock stories in recent history.  

Dell Computer: The Greatest Stock of the 1990’s

The stock of Dell Computer was the best performing stock of the 1990’s. It is hard to gain perspective on those mind-boggling numbers, but let’s try. Have you ever heard someone describe with amazement that the home they purchased in the 1960’s for $25,000 is now worth over $100,000? That is a fine investment and has the added benefit of shelter over your head, however, such returns don’t hold a candle to a similar investment in Dell computer. A $25,000 stock trading investment in Dell stock in 1990 was worth over $21 million after just ten years! Those returns were achieved in less than a third of the time of the home purchase example. This example was not intended to discourage home ownership, but intended to show the significance of the appreciation of Dell's stock over time.

Stock trading: Why study the history of a great stock? Dell’s stock run was a feat of greatness. Along the way to greatness Dell left a trail of clues that might lead to the next incredible stock trading opportunity. Learning from Dell’s history, stock trading investors can evaluate other companies that exhibit “Dell like” traits.  

Stock trading: Investing myths Dell proved wrong
One of the interesting things about the stock trading success of Dell Computer is that it proved many stock trading investing myths wrong. Investors commonly rely on these stock trading criteria before dropping hard earned money into a company. The following are five common myths that would have mistakenly steered stock trading investors clear of investing in Dell.  

Stock trading Key Terms:  

• Stock Share: A share of stock represents ownership of a portion of a company. 
• Stock Market: A commercial exchange of shares of stock between the buyer and seller.
• Stock trading: Buying and selling stock shares. 

Stock trading Part One Quiz:

1. The biggest challenge with stock trading is?
   a. Having enough money to buy stocks
   b. Knowing the right time and right stock to buy
   c. Buying the least expensive stock
2. What steps can an investor take to learn about stock trading?
   a. Listen to a TV Guru who tells you to buy or sell a stock
   b. Study the history of stocks that have performed well over a long time
   c. Listen to a tip from a co-worker
3. Which is a better investment of your money?
   a. Home
   b. Stock
   c. New Car

Answers found in Stock trading course Part Two
  
Stock trading continued: Click here to continue with Part Two of a full circle view of Dell Computers amazing stock run   

Stock-trading-101 .com

Copyright 2001, 2006 by Stock Trading 101.com