Basic Stock Market — learning to invest stock market
The first thing to know is to understand the language of the trade which includes the stock symbol, the stock shares, the holding , the market trade , the limit trade and many others.
Learning to invest in stock market
• Invest on an easy to use calculator, a spread sheet program, a good computer with high speed. A color printer, high speed internet connection
• Open an account with a trade broker who is also online. This choice can be made by surfing on the various websites, comparing a few in relation to their fees, brokerage, resources and educational programs.
• Make a choice of one or two investing strategies from the websites.
• Make a note of the trading plan that includes the time of getting in and getting out of a stock, amount to trade, risk involved and the final goal to be achieved.
• Search for good tools required as a good stock scanner.
• Practice buying and selling stocks by beginning paper trade. Paper trade involves no risk; it helps in building confidence in the strategy involved.
• Learn to determine the direction of the general market trend. It is better to invest in an upward moving market to get support to the trade.
• Make a positive assessment on the amount of capital to be used in a trade of any one stock.
• Purchase leads to a period of space for the stock to grow. This is the incubation period. Time has to be given to know whether it goes up or not.
• Make a judgment for the time to sell or when to but more. The knowledge of this decision depends on many factors. This comes by having knowledge of the world market, experience and several other factors.
• Keep a track of all the documents of the trade. Continuous improvement on the strategies and system will lead to a successful online stock trading. Once the trade is closed a chart should be made and printed out for review. Having a glance at the trade picture spots places for improvement and shows the status of meeting the stock trading goals.
Stock trading knowledge is a power that can be built by continuous experience and knowledge. This will lead to the ability to be successful in stock market.
• Learning invest stock market requires hard work, lot of time to study from books, articles and daily newspapers.
• Limit the amount to be invested in stock
• Do not aim to the highest and be prepared for adverse conditions.[/box]