| Here's your short, step-by-step guide for trading the | | | | 7. Know the direction of the stock market trend. |
| stock market for beginners: | | | | Before making any stock trades, learn how to |
| 1. Investing tools you'll need: an easy to use | | | | determine the direction of the general markets. You'll |
| calculator, a spreadsheet program, a good computer | | | | want to buy into an upward moving market to give |
| with ample processing speed and good-sized monitor, | | | | your trades support. A strongly downward trending |
| a color printer, a high speed internet connection with | | | | market will work against any long trades as in 2008. |
| security protection, access to a stock screener and | | | | 8. How much capital to trade. Before you buy any |
| an open account with an online brokerage. | | | | stock decide how much of your capital you'll trade in |
| 2. Open an account with an online trading broker. | | | | any one stock. |
| Look at commission fees and other service charges. | | | | 9. Incubation. Right after you purchase a stock it |
| There are several websites that offer side-by-side | | | | goes into an "incubation period." There's really nothing |
| comparisons of online stock brokerages. Use the | | | | you can do but give the stock space to grow. Like |
| account for access to stock market information, | | | | when you plant a seed and you're waiting for it to |
| resources and educational programs you can use as | | | | grow. If it doesn't grow you have to plant a new |
| you begin the stock trading process. | | | | seed. |
| 3. Research various investing strategies and choose | | | | 10. Know when to sell or when to buy more. |
| one or two. Websites and books are terrific | | | | Beginner online stock trading success relies heavily on |
| resources for finding stock trading strategies. Search | | | | knowing when to exit a position in order to protect |
| on Amazon for stock trading books and use the | | | | your initial capital and your gains. Examples include a |
| reviewer's comments to choose a book to purchase | | | | stop loss based on a percentage, a dollar amount or |
| or check it out at your local library. | | | | the stock's price volatility. For buying more of a |
| 4. Write out your trading plan. This will be your stock | | | | position, this can be based on a percentage gain |
| trading guide detailing when will you get in and out of | | | | combined with price strength. |
| a stock, how much to trade on any one stock, risk | | | | 11. Track and document your trades. Successful online |
| management, when to sell and setting your goals. | | | | stock trading includes continuous improvement on |
| 5. Find good trading candidates. Have access to a | | | | your strategies and system. After you close out a |
| good stock scanner for technicals. Your broker should | | | | trade, print out the chart for review. Looking back |
| have the tool you need. | | | | will give you a good picture of any places for |
| 6. Practice buying and selling stocks. Before making | | | | improvement. It also gives you a chance to see if |
| any stock trades, a smart and practical thing to do is | | | | you are meeting your stock trading goals. |
| to "paper trade" as you begin to learn and evaluate | | | | 12. Make time to continue learning. Stock trading |
| strategies. That's basically where you keep a fake | | | | knowledge is power and continuing to build your |
| portfolio of your trades until you have confidence in | | | | experience and knowledge will increase your ability to |
| your strategies. Your broker should offer watch | | | | successfully profit in the stock market. |
| portfolio services and you can also find it for free on | | | | That's the simplified guide to online stock market |
| Yahoo Finance. | | | | trading for beginners. |