| The Stock Market For newbies can seem like a | | | | lot of time reading each company's financial |
| place to make some fast easy money. You | | | | reports. Their is a paper called Investors Business |
| sometimes hear how a stock went up two | | | | Daily to help with this. If you are going to be |
| points, and say to yourself, if I had pulled the | | | | investing in the stock market, you should be |
| trigger on that one I could have made a lot of | | | | reading this paper on a daily basis. Technical |
| money. Fast easy money can be made in the | | | | analysis is the study of charts. The tool used for |
| stock market. But slow and easy is the way to | | | | this is charting software. Charts show a stocks |
| go, and if you start at an early age, a fast and | | | | price movement, and with looking at enough |
| easy retirement is a reality. | | | | charts we can see everything we need to know |
| Beginners at stock trading should learn all they can | | | | about a stock, just by looking at the chart. |
| in order to succeed. You do not see a | | | | Another important tool you are going to need is a |
| professional golfer pick up a club and become | | | | Stock Trading System. If you travel to a place |
| good at golf overnight. It takes time and | | | | you have never been to before you do not just |
| knowledge to be good at anything in life. To start | | | | jump in the car and go. You look at a map, decide |
| off, make sure you understand How The Stock | | | | which way is going to be the best. The same is |
| Market Works. Start at the beginning and work | | | | true with the stock market. Many beginners jump |
| your way up. You did not pick up a book one day | | | | in without a plan of action, you have to have a |
| and start to read, first you learned the letters of | | | | plan, why and when you are going to make the |
| the alphabet. | | | | trade, when you are going to take your profits, |
| How you are going to trade? knowing this is going | | | | and you must stay with the plan. Practice paper |
| to let you know what you need to be reading to | | | | trading before you start to trade to see how well |
| learn about it. Are you going to scalp, day trade, | | | | you are doing. Once you are trading well on paper |
| swing trade, or buy and hold for the long run. | | | | then it is time to open an account. |
| Scalping involves buying or selling a lot of shares in | | | | Now you are going to need some capital to start |
| a stock, and you are just expecting a small move | | | | investing with. Do not start trading with money |
| in the price. Day trading is close to scalping but | | | | you can not afford to lose. If you have to start |
| you are expecting bigger moves in the price, and | | | | saving a little at a time until you have enough |
| you do not hold the stock overnight. Swing | | | | saved, then do it. Even though you went ahead |
| trading is when you buy a stock and hold it for | | | | and learned all you need to start trading, does not |
| two days to two weeks looking for a big move in | | | | mean you are going to be a success at the very |
| the price. Buy and hold is when you plan on | | | | beginning. It is going to take some time, and you |
| holding on to the stock for a long time. You | | | | will lose some money. That is why you don't start |
| believe the company is going to grow in value and | | | | trading with money you are going to need to eat |
| the price is going to go much higher. | | | | with. |
| Next you will need to understand what | | | | The stock market might seem hard at the |
| fundamental analysis and technical analysis is: | | | | beginning for a newbie, but once you learn the |
| Fundamental analysis relies on economic | | | | basics, Have a plan, and a little experience, you will |
| information, such as the companys financial | | | | be on your way to becoming wealthy. |
| situation, and quarterly earnings. This can take a | | | | |