| You've worked hard and saved money. Now you | | | | dollars to place one single trade while an online |
| want those savings to work for you and earn you | | | | discount broker can do the same thing for $5 or less. |
| even more money. The stock market is the easiest | | | | 6) Before investing real money, practice paper trading |
| and best way to do it, provided of course you know | | | | your stocks and strategies. "Paper Trading" means |
| what you are doing. | | | | simply that you find the stocks to invest in and |
| Here are ten stock market tips for beginners that if | | | | pretend you are buying them. Once your paper |
| followed will lead you to success. | | | | trades make consistent profits on paper, then start |
| 1) Determine your goal. Are you trying to generate | | | | trading them for real money. |
| an extra income or do you just want your money to | | | | 7) Before buying any stock, always have an exit |
| grow so you can retire at an early age? Once you | | | | strategy. The stock market can be rough for |
| have defined your goal, then you can create a | | | | beginners. Always have a price you will exit at on the |
| trading strategy for achieving that goal. | | | | downside or the upside and stick to your plan. After |
| 2) Mutual funds are for the ignorant. Mutual funds | | | | you buy a stock, emotions such as fear and greed |
| have historically underperformed the markets. It is | | | | can kill your portfolio. Make a plan before buying and |
| extremely rare that you will ever get a 100% return | | | | stick with it. |
| with mutual funds. Therefore, take the time to learn | | | | 8) At the end of each year, go over your trades. |
| how to pick stocks so you can easily make double | | | | Figure out why the losers lost and learn from it so |
| even triple-digit gains rather easily. | | | | you don't make the same mistakes next year. |
| 3) No one trading strategy will work in all markets. | | | | 9) Master technical analysis and you'll be able to |
| You must have an arsenal of at least three trading | | | | predict the direction of any stock or index with fairly |
| strategies, one for when the markets are moving | | | | accurate results. |
| higher, one for when the markets are moving | | | | 10) As a stock market beginner, you may not have |
| sideways, and one for when the markets are falling. | | | | had the time yet to learn (or want to learn) how to |
| 4) Avoid short selling. Short selling is a strategy used | | | | pick winning stocks. Use a stock picking service |
| to create wealth when stocks are falling. It is | | | | instead. You can find these all over the Internet. |
| extremely risky and your broker is in control. He can | | | | Make sure they have a proven track record you can |
| force you out of a losing position right before it | | | | check, and make sure they give you a free trial. |
| reverses and takes off. A better alternative is to | | | | By following these ten tips as I have laid them out, |
| invest in Contra ETF's or Puts. | | | | your chance for success in the stock market as a |
| 5) Choose a low cost broker and do your own | | | | beginner will increase dramatically. |
| investing. Full service brokers charge hundreds of | | | | |