Stock trading, what do I need?
Hello, I am interested in beginning to invest in stock to make some money on the side and to understand about how it works etc. I am new to the whole process and was wondering if anyone could tell me any pointers or tips that could help me in my experience to investments. Also, I am unsure as to which online broker i should use, which is the easiest to use? Thanks for your time and help.
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about 1 year ago
first of all, are you prepared to lose money and will it hurt you if you do?
then, it is a good idea to study the stock market and know something about it before you start investing your money
even the best of stock traders lose money but fortunately they make more often than lose
about 1 year ago
if you’re investing small amounts then be careful of the transaction fees that certain brokers provide. i.e. if you are using a broker that charges a $30 max transaction fee and have $600 to invest then the stock would have to go up 5% just for you to break even.
I think ING sharebuilder and Scottrade have some of the cheaper transaction fees (although I haven’t used them for trading so i can’t vouch for their usability).
Also for market opinions check out seekingalpha.com
about 1 year ago
I use ING sharebulider and they are great. They have great customer service. The frees are low. also look for promo codes or refer a friend to get free trades or cash for both if you decide to use them. My brother uses scott trade – the fees are a little lower than ING but the customer service is not as good. I personally would pay more for the customer service as I invest for the long term. If you plan on buying and selling often go for the cheaper fees.
about 1 year ago
Before you look for a brokerage firm, you should first learn what you are doing, how to do it, why your are doing it. then you can decide on where to do it.
Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.
Start your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs.
Here is some reading material that can get you started in the right direction,
The first book you should read is Rich Dad Poor Dad by Robert Kiyosaki
Then try some of these
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
The Warren Buffett Way by Robert Hagstrom
Trading For a Living by Alexander Elder
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Disciplined Trader by Mark Douglas
Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )
While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why. This site has some basic information for beginners. If any site offers free information, take it.
Other website that can provide instructions and help with procedures and terminology are
Investopedia – http://www.investopedia.com/ Stock Charts – http://stockcharts.com/
http://www.investorshub.com/ http://www.1source4stocks.com/
Visit some of the more professional websites like Zacks – http://www.zacks.com/
Smart Money – http://www.smartmoney.com/ Schaeffer’s – http://www.schaeffersresearch.com/
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.
Attend all the free seminars you can, just be careful and don’t get pressured into anything you really don’t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (FINRA SEC MSRB CBOE) may provide some free literature.
You at least have made the right decision to start investing, this is the first big step and it won’t be your last. Keep taking those steps forward and along the way never take the advice from people that are not in the market or try to tell you not to invest. Good luck on your journey
about 1 year ago
Before you even think about a broker go read some books, go to some seminars (do your homework to make sure they are legit) and find a mentor or investment club. After you’ve learned a little bit “paper trade” for about six months.