Stock Market Trading for Beginners
The number one key factor for anyone looking to get involved with the stock market is that you must be sure you can afford to lose the amount of capital that you are willing to invest with. Whether it is day trading, short term investing, swing trading or long term investing, you must realize that you may lose all, some or more than the amount of capital you inject into your trading account. Day Trading, Swing Trading or Investing are *not* get rich quick schemes. It takes a great deal of time and dedication to learn to trade, the right way.
Begin by doing research on the stock market including the hours of trading, hours for pre-market trading and hours for post market trading. Traders will need to have a margin account if you plan on short-selling stocks. In these market conditions, short-selling is almost a prerequisite to trade because you do not want to be limited to only trading stocks on the long side. A one way trading account can be utterly useless in a Bear market. Reading books about trading generally provide a variety of information for new traders.
Finding the right broker is very important. Remember, you get what you pay for and if you are searching for the broker with the cheapest commission, be prepared to receive, unacceptable service. Look for features offered by brokers and compare, side by side. Traders must have an online broker to make trades online. Also look at the brokers customer support and give them a call at various times throughout any given day to see for yourself, how quickly they respond and the attention you receive. Find out if they offer pre and post market trading, if you intend to trade during those time periods.
You will need to have a charting platform as well which is generally available from the online broker. Many brokers will provide demo-platforms for you to load and play around with prior to making your final decision on which one to use. You should be prepared to demo for several weeks or months, before jeopardizing any real cash, so look into several brokers for a thorough comparison. Also, ask trading associates or others in the stock market business for recommendations and also, those you should stay away from. Just remember, one individuals experience may not be the same as your own. Assistance on setting up your charts can be found by subscribing to the Chart Settings.
Any individual new to the stock market must be prepared to ‘practice’ trading for a period of time prior to risking even one penny of your capital. Practice trading is also known as demo-trading or paper trading. The amount of time needed for demo-trading is up to each individual. A trader should focus on learning their trading platform and how it operates.
You should consider utilizing professional stock picks services for assistance while demo-trading and following through with your live trading methods that you will develop, over time. Professional services provide potential stock picks however, no one should ever consider trying to duplicate performance of any service. Services from professionals are not meant for mirroring and those who lead customers to believe they can, are not worth your time or your money.
After you have your trading account and charts set up, you should seriously consider subscribing to a Training Program for professional assistance. Fees will vary depending upon the provider you select however frequently, the cost of a Training Program can be the same or slightly less than the amount of loss a trader is willing to take on any one given trade. Successful trading lies in the hands of the trader who sincerely wants to learn.