Stock Market For BeginnersStock Market Basics Part 2Stock market basics covered rules 1-4. Stock Market For Beginners continues with rules 5-8. This is not a complete education but offers stock market trading tips to help you lean how to trade stock.
Photographic Print Stock Market Basics - Rule FiveUse limit orders until you gain enough experience to know when and how to safely use market orders. A market order tells the market maker to fill this order immediately. Price is not the primary consideration, time is. Consequently, you could be shocked at the price you end up paying for shares ordered at market. Market orders also allow the market maker to take full advantage of the bid ask spread. They put money in their pockets by taking it out of yours so be careful. When you place a limit order this tells the mm to give you the shares at the order price or better. If the price falls a little by the time your order uploads, you may receive the shares at a slightly lower price than you asked for. This is called price improvement. If the price rises before your order uploads, the mm will simply hold the order until the price falls back to your specified price. If that fails to happen, you will not get a fill. With a market order you always get a fill, but the price can be a surprise. With a limit order you may not get a fill but the price you will pay if you do is certain.
Stock Market Basics - Rule SixPlace stock market orders during normal stock market trading hours. This is generally 9:30 a.m. - 4:00 p.m. Monday - Friday.Your brokerage will charge you a fee on both the buy and sell side of each trade. These fees mount up quickly and subtract from your gains so you always want to make the cheapest stock trades you can. It's a good idea to do an online stock broker comparison before you open your account as the fees vary widely.
After hours stock trading
has its special uses and you may eventually find a place for it in your arsenal of
trading strategies
but it's more risky than trading during regular stock market hours. Don't place after hours trades until you have some experience.
Stock Market Basics - Rule SevenGo long for now.You have to learn how to trade from the long side (think bullish stocks) before you can learn to short. It's not quite as simple as just taking long trades in reverse. This brings us to...
Stock Market Basics - Rule EightThe final and most important rule of your entire stock market for beginners education.If I had to answer the question, "how does the stock market work?" in three words these are the three I would use: with the trend! Always trade the trend . For longs this means you only trade bullish stocks. Stocks that are in an uptrend in an uptrending market. This concludes my explanation of how to trade the stock market for beginners on this page. The text links will take you to pages where those terms are explained in greater depth and to some good trading resources as well.
This is a clearly written, easy to follow swing trading course. The author tells you the best online trading software (some free) and online trading brokers to use for swing trading. He is including the Trade Tracker Spreadsheet which will help you track your trades and analyze your results. Also included are 7 Habits of a Highly Successful Trader which shows you how to plan a trade and trade a plan and The Day Trading Mind an ebook on trading psychology. This is more important than most new traders realize. Warren Buffett once said, "Success in investing doesn't correlate with I.Q. once you're above the level of 25. Once you have ordinary intelligence, what you need is the temperment to control the urges that get other people into trouble in investing." There are also a couple of good stock market indicator reference ebooks included in the course. Click on the link above to check it out.
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