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Trade the Stock Market with Confidence .pdf

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Trade the Stock Market with Confidence
Build a solid foundation for years to come
and learn how to win in the stock market


It is not that hard as it seems.
Stock trading does not have to be as difficult as you might think.
In fact, it can actually be quite simple but, of course, you must follow a few
basic rules.
If you've never traded stock before or have traded unsuccessfully you have to
realize that it's time for you to learn stock trading. Whether you're interested
in online stock day trading training or you want to trade longer-term, there
are tons of resources available online and offline to help you gain the
knowledge you need.
Before we get into that let's chat a little bit about what stock trading is.
Trading and investing are terms that are often used interchangeably.
Investing is longer-term in nature. Trading stock is typically shorter term in
nature and seeks to take advantage of smaller market movements within the
larger trends.
Trading stock, means that you are taking a more active role than if you are
investing in stock. Let's look at an example of a very simple stock trade.
Buy 100 Shares Of XYZ Company at Monday's Open
Sell 100 Shares Of XYZ Company at Friday's Close
Please keep in mind that this is just a simplified example and not a
suggestion of a trade for any security. The above example is of a very simple
trade that lasted for one week. Here's an example of stock day trading using
the same fictitious company is above.
Buy 100 Shares Of XYZ company at Monday's open
Sell 100 Shares Of XYZ Company at Monday's close
As you can see in both examples we open the trade with a buy order and
close the trade with a sell order. In both cases we were "bullish" and chose to
"go long" the stock. Our second example was a stock day trade because we
opened and closed out our position all within the same trading day. Some
stock day traders place a much greater frequency of trades during the day.

You can also see that in both examples we specified the quantity to be
traded and also both examples we closed our trades using that exact same
quantity. It's always important to keep this in mind and make sure you are
completely out of a trade when you want to be. What I mean by that is that
when your trading method requires your position to be closed make sure
that you close the trade using the same quantity of stock as you opened the
trade with...That way you will not have any unwanted open positions that
may potentially move against you.
Something else that's important for you to keep in mind is that different
types of stock trading will require different amounts of capital. For example,
opening a standard stock brokerage account can require as little as $500$1000 to get you started. If, however you find that you will frequently day
trade than your minimum may go up if you're classified as a pattern day
trader. A pattern daytrader places four or more day trades in a rolling fivetrading-day period, stock brokerages will then require that you maintain a
minimum balance of $25,000 in your account and this may vary upward
depending upon the online stock broker that you are using.
So you can see trading stocks need not be mystical or difficult as long as you
keep the "trading stock for smarties" attitude in mind and continue to learn
while you earn while keeping things as simple and uncomplicated as possible.
Article Source: http://EzineArticles.com/1761328

You have to learn to trade effectively
If you want to make a fortune through stock trading, then you have to learn
how to trade stocks effectively. The very first thing you have to learn about
this business is to study several stocks by looking at them as your long-term
investments. It is also important to learn about different trading styles, risk
management and trading strategies.
You can get useful information on stock trading and investing in general
from the websites of several stock exchanges. The investor education
program of the Securities and Exchange Commission will also be of great help
for those who are just starting to learn how to trade stocks.

Just like any other business, stock trading also needs a business plan and
enough capital to make it work. But before starting a trading business, you
must first eliminate all your personal debt, have a trading system that is
logical, and be prepared to follow utmost money management principles.
As beginners in stock trading, you will learn how to trade stocks effectively if
you take into consideration your financial responsibilities in setting up your
goals and objectives as an investor.
An effective way to learn how to trade stocks is to develop your own trading
strategy after evaluating carefully the history of the stock's performance and
studying the investment strategy used by successful mutual funds. It is wise
that you invest your money in stocks that have good dividend and have
shown progressive gain in the stock market. You can determine what
companies are valuable by the use of fundamental analysis.
If you are just starting in this business, start small. Do not invest all your
capital in the stock market because the fluctuations are very unpredictable. It
will be helpful if you consult a professional to help you learn how to trade
stocks. Stockbrokers are very good in this area, but finding one that is right
for you is not easy. The best stockbrokers that you can get are those that do
not charge extra when trading penny stocks or those that do not have hidden
There are also risk-free ways to practice stock market investing without
actually putting money in the market. You can make use of stock simulators
and trade journals that allows you to practice trading stocks. With this, you
can practice new trading strategies and grow your own portfolio. A trade
journal is also helpful because you will learn a lot from the stock symbols you
have written on it and the calculations you make every day.
Also, it is best to understand the risks involved in investing in stocks. Stock
trading can be very risky and needs a lot of consideration before engaging
into this business. Although some people earn a living through stock trading,
this venture is not however for everyone. If you get into stock trading, you
have to be really prepared to take risks, as it can drain your savings in a short

Article Source: http://EzineArticles.com/expert/Carolyn_Anderson/338254
Article Source: http://EzineArticles.com/3188978

Copyright @ 2016 MyGearMedia All rights reserved. This report may be freely shared but may
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