How to Invest in Stocks
Being financially secure is a great feeling, for most people, houses and cars are you greatest asset, but to have it paid of is an even greater feeling.
1. Save. You need to save money so you can invest. So dont start investing until you secured enough saving to both invest and to take care loving expansiveness for several months, in case you lose your job. Also learn how to budget your money. even profits for emergencies and retirement.
2. Read. before investing you going to need a basic understanding of what stock is, and what is means to invest. So get some basic stock investing book.
3. Think. After you think, you should think again. Warren Buffet says that if he cannot fill out on a piece of paper several reasons to buy a stock, then he will not buy it.
4. Practice. pretend to trade stocks on paper before actually doing the real thing. Record your stocks and keep track of shares, dates and prices, profit or losses and include commissions, taxes. Record the reasons for each buy or sale. Calculate your net profit gain or loss for a long period of time. (1 year or more) then compare your results to the market index. like the S&P 500. dont start until your ready.
5. Open a stock brokerage account with a discount broker. find a good broker, most important factors to consider are cost, namely, how much commission will be charged. Discount brokers usually charge 10 per trade or less. while other will offer a limited amount of free traders a year.Also check whether dividend reinvestment is offered.
6. Hold for the long term, at least 5-10 years, preferably forever. Avoid trying to sell with the market has a bad day, month, or sometimes year. Also avoid temptation to take profit if stocks went up 50% or 100% or more. As long a the fundamentals are still good, do not sell.. Continue to invest with mony you don't need for 4-5 years. It makes since to sell if the company stock price hasnt drastically changed since purchase and the company is unlikely to profit again.
7. Avoid stock tips. Do your own research, don't pay attention to stock tips.. Warren buffet says he throws away all letters mailed to he recommending stock or another, these are salesmen being paid to say good things about the stock so the company can raise money by dumping stocks on unsuspecting investors.
8. Invest regularly and systematically. Dollar costing averaging forces you to buy low and sell high. If stock drops 20% or more, move cash into stocks, a;; available discretionary cash into stocks if the stock markets drops by 50% or more. the stock market always bounce back, even from the crash that occurred between 1929-1932.
9. Consider selling portions of your holdings as a stock appreciates, atleast 50 to 300%, based on quality of stock., holding on your winners will increase your long term chance of success. If the price to book gets to high, you should consider selling the stock.
10. Consult a reputable broker, banker, or investment adviser if you need to. Never stop trying to learn, and continue to read books an articles to further your success. you also should read articles on how to deal with emotional and psychological aspects of investing, to help you deal with the ups and downs of participating in the stock market.
"We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
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We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
"StockTrader.com provides weekly stock market recaps, 100s of educational articles, and a Trade Journal tool. Our mission is to empower the independent investor.
ReplyDeletewebsite: stocktrader.com/blog "