Stock Market for Dummy
It is not easy to start trading on the stock market when you have no financial background at all. It shouldn’t be difficult to prosper, though, if you follow certain guidelines. Being organized and disciplined are two very important factors in this business. Don’t let all the information you gather confuse you. Make sure important decisions are taken before you start risking your money. Decision 1 – Investing or Trading?
The answer to this decision can be found in the type of person you are and the time you intend to dedicate to the stock market. Here is a guideline that should help you understand the type of investor or trader you can be. Type: Long/Short term investor
Hold Period: Months to Years
Time Required: A couple of minutes every week
Being an investor is different from being a trader. Investing can be done through a broker and shares bought can be kept for a long period of time. Daily market fluctuations are not really your problem and the time required to check your investments is really minimal. Type: Swing Trader
Hold Period: Days to Weeks
Time Required: A couple of minutes every day
Swing traders normally buy and sell shares every week, with the intention to hold to their positions for only a couple of days, sometimes a week or two. Being a swing trader, more time is required in front of your computer, or on the phone with your broker, and the profit is made as a result of a move in a stock that occurs in a short period of days. Type: Day Trader
Hold Period: Minutes to Hours
Time Required: Several hours every day
Being a day trader is the ultimate in stock market trading. This requires a good setup which should include a PC with a couple of monitors, and a fast internet connection. Day trading is not for everyone, but if mastered could be the most profitable form of buying and selling shares on the stock market. Decision 2 – Fundamental or Technical?
Buying or selling a stock should always be a result of a trading system already in place. If not, that is where trading becomes gambling. A trading system can be either based on news and figures related to a particular stock, known as ‘fundamental trading’, or one could have a system based on charts and analysis of the stock, known as ‘technical trading’. A combination of the two can also exist, but normally traders tend to stick to either one or the other system. Again, this decision is also based on the type of person you are. If you are a person who likes watching news every day and don’t find problems in getting to know all there is to know on a particular stock, getting to know about the company, its directors, what they really do, their products and services, then trading based on fundamental analysis could be for you. If on the other hand, you prefer working with charts and software that can be used as a technical tool, as well as back-testing systems, then you would probably feel much more comfortable trading the technical way. Beyond the decision
Whatever decision you take, one of the most important aspects of trading is to stick to your system and your plan. Don’t improvise during market hours. If your system is not trading profitably, you can always go back and see what’s wrong at a later time when you are not trading. This is only the beginning. You can never stop learning about the stock market. Don’t rush into it just for the fun of it. Treat it as a business, from which one day you can reap great benefits from.
Other Trading System Articles
Performance Management, Productivity and The Decision of The Pilot The more productive we are, the more we get paid. Seems logical, but is it true? All depends on the definition of productivity on an individual level. Take for example the decision of the pilot.A plane from North-West Airlines is heading to India. Above Germany the crew does not fully trust a group of twelve passengers. They used mobile p ...Forex Trading – Five Tips to Make Money Fast! This article is all about FOREX trading to make you rich - and we’re going to give some alternatives to conventional investment wisdom. Why? - Because most traders in FOREX follow the norm and make average gains - while this article is about making spectacular gains from FOREX Trading and making money fast!The AimHere we are going ...Can I Get Affordable Dental Care? In the United States most companies offer their employees dental insurance, but yet many do not. They slip through the holes of the system – the in-betweeners – that have to pay, but struggle to pay the out-of-pocket expenses.The in-betweeners have two choices, go without any insurance, go to the dentist and take the full attack on their ...NASDAQ 800? In November of 2000 when the NASDAQ was trading at 3000 I wrote in this column that the NASDAQ Index would fall to 1500 and I got lots of heat for saying it. Microsoft had fallen from $129 to $60 per share. You know where they are today.The talking heads on CNBC-TV and many of the radio stock experts are convinced we are headed back up as ...California Car Wash Fundraisers and Environmental Law Many non-profit groups are feeling upset that they are allowed to do car wash fundraisers in some California Cities. It is not that the government officials are against your groups raising money, it is that they worry where are the soapy dirty water is going. It is a problem and it might be good for you to understand some of the history behind t ...Ed Seykota Markets: FuturesContact: Undisclosed. (I do have his e-mail address but it would be unfair to disclose it.)Results:Undisclosed but thought to be up there with the VERY best. He has made some of his managed account holders into multi-millionaires from small initial investments.Featured in the books "The Market Wizards ...Genetic, Robotic, and Nanotech Decision Time: Genetic, Robotic and Nano-Opportunities:There is an abundance of technological threats and/or opportunities that mankind has before him. Whether or not there is an ethical basis upon which we might effectively utilize these technologies is something that worries many serious students of our species. The head of the Club of ...FOREX Trading Systems – How To Pick One For Huge Gains FOREX trading systems are big business now as the internet allows anyone to use one and make big profits.The question traders need answered is - what do they look for when they buy a FOREX trading system to locate the good FOREX systems from the losing majority.This article will give clear, concise, tips for picking a FOREX trading ...Geocaching -- The Technology Behind "The Hi-Tech Treasure Hunt" It all started on May 2, 2000 with the removal of selective availability by the White House. (Selective Availability is the intentional modification of GPS signal to degrade accuracy of readings) At that moment, the GPS receiver became 10 times more accurate.GPS, or Global Positioning System is a navigational system which operates through ...Candlestick Charting – Adding a Visual Dimension To Your Trading Candlestick charting is great for traders wanting an extra edge in their quest for profits - this is due to the way the candle bodies are drawn, that gives a better insight that is visual, and shows trader psychology.More traders than ever are using candlestick charts due to the extra trading edge they can get with this form of charting - ...US Economy and the Impact of Indian Economy on the Global Market Since the dawn of the 21st century very few nations have been recognized or emerged to have the largest economic stability in the world. Leading nations like the United States entered the 21st century with an economy that was bigger, and by all means more successful, than ever. Despite enduring two world wars and an everlasting depression in the ...The Curve Drawdown - A Sensitive Aspect of Stock Trading If you are a new player on the stock market, you should know that things aren’t always nice and shiny when it comes to stock trading. There are downsides and upsides as in any other trading or investing process and you have to be prepared to cope with the negative aspects. The drawdown is the worse thing a stock trader may experience along the y ...An Introduction To CFD Trading (Part 1) Here's a really simple yet useful tutorial on CFD trading that will get you up and running very quickly if you're new to CFD trading.By the time you finish this article, you'll know how CFDs work, what makes them highly profitable, and understand the costs involved in CFD trading.CFD stands for Contracts For Difference, which is a ...Condom Sense: Condoms and the Environment So you are smart enough to practice safe sex (preventing both pregnancy and STDs) by properly using a condom. But what do you do with the condom when you are done with it? Here are some hints on environmentally-friendly condom disposal.Firstly, don’t flush your condoms, ever! Flushing condoms is not the way to deal with them. Condoms ...Successful Options Trading Strategies When it comes to giving people the hope of becoming a millionaire overnight, the stock market excels. Every day we see evidence of stocks that have flown upwards as if they had wings, providing investors with a windfall of profits. It's inevitable that catching one of those stocks just before it takes off is an exciting possibility, inspiring ...A Mini-Guide To The Managed Forex Account A managed forex account is forex made easy. It is especially tailored for those investors who do not have the time or desire to monitor their own forex account. Many different companies offer these accounts to their clients. A managed forex account is often chosen by individuals who wish to take advantage of the high liquidity and high profit ...Buy Local Food To Reduce Food Miles You would think that the UK and USA does not produce any food, if this is the case then where has the billions of pounds gone that our two governments pay in farmers subsidies?By buying food from abroad, developing countries get to market their produce world-wide and we get out of season food all year round. Everyones happy except the env ...How Do Other Countries Devalue Their Currencies? Countries devalue their currencies only when they have no other way to correct past economic mistakes - whether their own or mistakes committed by their predecessors.The ills of a devaluation are still at least equal to its advantages.True, it does encourage exports and discourage imports to some extents and for a limited period of ...'Carbon Neutral' What Do You Mean? This new term which has lately been doing the rounds in environmental circles and also in the more general media, refers to carbon dioxide and how we can find ways to reduce or offset the amount of this global warming gas which we pump into our atmosphere.We are attempting to neutralize part of the carbon dioxide emission by increasing ca ...Big Pharma Bottoming Process (BMY PFE & LLY) Big pharma innovators have been under pressure from generic drug competitors, Medicare changes, and lawsuits. There's been a general negative feeling towards high drug prices. However, the pendulum may swing in favor of drug innovators, because of greater awareness that large capital investments are required to create a new drug, and if those in ...Money IS Green Money IS green! And here all these years I thought "money", for Americans, only consisted of paper "fiat" script. Or printed wastepaper, if you prefer.Money, that is REAL money, was invented by a guy named Penny, in England. This is our more modern variety. There has existed money in the form of coins or medallions for almost all of human ...The Wind Farm Debate Wind power is proportional to the cube of the wind's speed, so relatively minor increases in speed result in large changes in potential output. Individual turbines vary in size and power output from a few hundred watts to two or three megawatts (as a guide, a typical domestic system would be 2.5 - 6 kilowatts, depending on the location and size ...Forex Scams: How to Spot Them A Mile Away In recent years, investors have witnessed increased number of investment opportunities and offerings. While the complexity and success of these investment products vary, technological innovation has made the Forex market one of the fastest growth areas. Many of the leading Forex brokers reported up to 500% rise in the number of new retail cust ...What's the Fuzz about E-currency Trading You keep hearing about this money making system that requires no selling, only an hour a day (max) and no special skill.Yeah right.At least that's the first impression for someone who has been in the internet for a while.Enter E-Currency Trading.What if you were able to provide the liquid capital for "Internet Money" ...Are These Simple Trading Mistakes Costing You Money In The Forex Market The 2% rule is a powerful tool in Forex trading. By adopting this rule you’re using a strategy that decreases the size of your losses during losing streaks, an important consideration. There is, however one small caveat that you need to be aware of when using the 2% rule to calculate how many Forex shares you are going to buy. As you know, the n ...The Move To Commodity Trading Commodity trading is remarkable, especifically because it is possible to make large amounts of money in a short period of time. It is simply a means of trading any physical material that is exchangeable with another like item that investors buy or sell. Commodity trading is basically speculation on the future price actions of a basic raw materia ...Corporate Websites: ROI or DOA? Here are some statistics from a recent B to B Survey:93.4% of respondents use the internet to research a B to B purchase decision. 63.9% of respondents go to the search engine as the first step in the buying process. 54.6% of the people are 1-3 months away from making a buying decision. 89.7% of the people are 2 weeks to 6 mo ...Stock Market Trading The stock market offers various opportunities for trading. Apart from the main securities, which one can trade on various exchanges like the New York Stock Exchange and Nasdaq, there are other forms of trading like forex trading, currency trading and ‘contracts for difference’ also known as CFDs.Stock market trading normally involves open ...Electronic Arts: Buy or Sell As the new generation of video games will finally take over this November with the release of Nintendo’s Wii and Sony’s PS3, should you, as an investor, be interested in purchasing shares of affected companies such as Electronic Arts (ERTS)? An answer to this question may unfortunately surprise you.Known for its Madden and Sims series, EA ...Markets: Rotation and Relationships Over the past several months, there has been rotation from cyclical to non-cyclical stocks, which suggests the cyclical bull market is in a late stage. However, there has also been a general rotation between bonds, stocks, and commodities, given financial institution's asset allocations.The seven-month chart below shows SPX (blue line), T ...Crude Oil Prices Historically, crude oil or petroleum prices in the United States have been affected by a variety of global factors. In the beginning of the 20th century, crude oil production began to be controlled by the US government, with restrictions on the amount of production and price to conserve this valuable energy source. Following the Second World W ...Switzerland as an Offshore Jurisdiction Thinking of using Switzerland as an offshore jurisdiction, think again!The following comes from the Swiss embassy page and speaks for itself showing clearly that Swiss banking secrecy is not what it used to be.Bank Secrecy FactsBanking secrecy does not protect criminal or illegal activitySwiss banking secrecy is in no ...
|
