I want to learn about stocks trading...can anyone give me some pointers?

1) Open an account at a Brokerage like Scottrade. They have over 301 branches nationwide.

2) Deposit 500 dollars into your account and maintain that balance.

3) Do some research on certain stocks using these websites:

http://www.money.com
http://www.marketwatch.com
http://finance.google.com

4) Look for stocks with a good track record. Stocks that have graphs that have steady rise. MA, Goog, Bidu, Rimm, AAPL.

5) Two types of stock trading accounts:

Margin accounts: no limit on trades
Cash accounts: 3 day settlements per trade

6) Monitor hot IPOs like Blackstone IPO that comes out tomorrow.

Once you've learned the basics, join a stock trading group to talk to experienced traders who are in the trenches right now:

http://finance.groups.yahoo.com/group/TradingZoom/

I recommend http://www.top10traders.com It's a free site that let's you invest with play money so you can learn stock trading without risking your money. Good luck !

I think the best way initially to get a hint as to what to invest in would be to watch MSNBC "Mad Money" - it is funny and informative
You will not understand a lot in the beginning, but if you watch it 3 or 4 times you will start to "get it"

Never use your own money and if you do not much.
Because stocks are like:here today gone tomorrow.

Don't trade. Invest instead. Buy and hold your investments regardless of current market conditions. Keep your costs low. Match your risk exposure to your time horizon. Don't buy individual stocks; buy mutual funds instead.

Have a plan before entering the trade and then stick to it. Lets say you like the stock NGA now trading about 9.30. Lets say you have 100,000 for investing.
Only buy one third of what you can allocate to this stock so if you want to own 15 stocks spread them out into different sectors.
So that would be 6,666 for each stock and with NGA purchase
1/3 to start ie 2,200 worth of the stock or in NGA's case about 235 shares...repeat the process for each stock you like.
Pick the stock on fundamentals looking at revenue growth, earnings growth, debt/equity, net quick, insider ownership, volume traded, recent stock price history and read the 10Q's for managements outlook. Avoid out of favor industries or buy puts in them.
If NGA continues to meet your criteria and the price drops to say 7.71 (about 20% decline)then buy another equal dollar amount, so this time 285 shares...sell those when the price goes back to 9.30 so as to avoid having too much in any one stock. If it drops to 6.36 and the fundamentals are the same then buy another chunk of 345 shares and sell those at 7.71
2. Have an overall stop loss on any one stock and certainly if the price behavior becomes suspect then dig deep to see if something is amiss. Frequently its nothing and I have found 95% of the time the price will rebound. I have a set stop loss of about 50% but sometimes disregard it and although its rare that it will happen it does happen. The keys are the fundamentals of the stock and the economy.
This technique will provide about an 80% win rate on trades with each trade about 20% profit. Paper trade it until you are comfortable. The 20% that don't pan out are normally due to markets and or out of favor sectors

Try The Motley Fool's website and discussion boards. They're a good starting point for those who are serious about learning how to invest.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.034
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy