Stock Trading Tips

How To Trade Stocks

How To Trade Stock OptionsHow To Trade Stock Options
Stock Trading Courses For Beginners Are A Great Way To Establish The Proper FoundationStock Trading Courses For Beginners Are A Great Way To Establish The Proper Foundation
A Guide To Finding The Ideal Stock Trading SchoolA Guide To Finding The Ideal Stock Trading School
Looking At Popular Stock Trading StrategiesLooking At Popular Stock Trading Strategies
A Beginner’s Guide On How to Trade In The Stock MarketA Beginner’s Guide On How to Trade In The Stock Market
Stock Trading Apps And How They Have Revolutionized InvestingStock Trading Apps And How They Have Revolutionized Investing
Can Penny Stock Trading Get You Rich?Can Penny Stock Trading Get You Rich?

Stock Trading Basics Every Young Investor Needs to Know

By Mike J

If you are new to the stock market, the numbers and terms thrown around from the markets section of your favorite news site and channels can be utter gibberish to you. Terms like ‘all time highs’ and ‘earnings movers’ do not mean much to an average investor and in most cases shouldn’t. If you have entered the industry for the long-term, then you don’t have to worry about this lingo or the flashes of green and red that cross the bottom of your television set.

money from the marketHowever, if you are in for the short-term gains, it goes without saying that you need basic knowledge of how the stock market works.

Stock Trading Basics:

The stocks market consists of exchanges such as Nasdaq and NYSE. Stocks are listed on particular exchanges which bring the buyers and sellers together, thus acting as markets for shares of the stocks. The exchanges track the demand, supply and the price of each stock.

However, this is not your conventional market and you cannot just appear and take your shares off the shelf like how you would at a grocery store. Individual investors are usually represented by a broker. You basically place your stock trades through the broker, and then they deal with the exchange on your behalf. Today, however, there are online brokers or platforms, which have made trading easier for the younger investors.

What Causes the Prices Rise & Fall?

There are numerous factors that cause the stock prices to go up and down. These include social and political unrest, supply and demand, natural disasters, media influence, opinions or reputed investors and risk. The combination of these factors in addition to all relevant information creates a particular kind of sentiment (either bullish or bearish) as well as a corresponding number of buyers and sellers. If there are more buyers (Bulls) than sellers (bears), the prices will rise and the opposite will occur if there are more sellers than buyers.

Stock Trading Basics: Bull vs. Bear Markets

A bull market means the price is rising while a bear market means it is falling.

You might be familiar with the phrase bear market, but if you’re new to stock trading, then you are unfamiliar with the experience. In the past 9 years, we have been in a bull market, making it the second largest in history. Of course, it started after the great recession, but generally, that’s how the markets work: Bull markets are always followed by bear markets and vice versa. The good news, however, is that bull markets far outlast the bear markets, which is why it’s possible to gain profits by investing in the long term.

Now, the information in this post is just a tip of the iceberg and so, it’s important to learn as much as you can before investing in stocks. The prices of stocks can rise and fall for various complex reasons and so, avoid the ‘hot tip’ talk in the office or in your stock trading group.

You may also want to find a mentor, who can guide you through this industry. It might seem unnecessary, but going into an unknown region alone can often cost you more than you would expect.

Filed Under: How To Stocks, Trading For Beginners Tagged With: basics in trading

Looking At Popular Stock Trading Strategies

By Mike J

There are many different strategies when it comes to trading stocks, and there are even huge arguments over what the line between trading and investing is and how that affects strategies about trading stocks. While there are many different options, there are several that stand out as some of the best stock trading strategies out there.

The One Per Week Strategy

This is one of the best methodss for true beginners because it forces them to really focus in, study the markets, and examine every good and strategies in tradingbad move they make during a week to figure out how they really are as a trader. Are they overly pessimistic and too cautious? Too optimistic and ignoring certain danger sign over and over? Do they really understand the technical charts they are looking at and trading off of, or trying to cheat with general trend lines?

All these questions can give a trader insight into how they trade, how they can adjust to trade better, and force them to slow down and get better since they're restricted to one stock per week. This can be one of the best stock trading strategies for mastering the basic (and even advanced) skills needed to consistently succeed.

Learn To Trade The Breakouts

This is one of the most common strategies when it comes to trading the stock market and it isn't hard to see why. Learning to read candlestick charts and the movement of high and low points can help to predict when a breakout happens, either up or down. By identifying potential breakouts before they happen or spotting them early at the beginning, a trader can jump in, see massive profitable movements in the market, and then jump out when the signs began to flatten out or even reverse.

This has long been one of the most popular models for trading stocks and because of the very high profit potential from a short time, will continue to be so.

Is Scalping The New Thing?

Scalping relies on being able to make tons of small profitable trades since no one trade is going to last more than minutes and the profit margins are going to be small. The winning comes from an overwhelming number of trades that are winners and just keep adding up over time. While this sounds good in theory, liquidity in the market is crucial for this to work which is why it is most often done in the Forex market. There are mixed reviews on how it works with stocks.

Looking At The Oracle

The nickname “The Oracle” might be a bit ostentatious, but it's hard to argue with the results that Warren Buffet has managed to accomplish over the years. While many traders will call this long-term investing as opposed to trading, it is a strategy that is true long game. Buffett looks for the most solid of companies in industries that can't or won't die, companies that have heavy cash and a huge customer base, and he invests heavily in their value over the long term. It's not sexy, but obviously he has made it work.

Filed Under: Stock Trading Tools, Trading For Beginners

A Beginner’s Guide On How to Trade In The Stock Market

By Mike J

When one thinks of investment bankers and stockbrokers, one will immediately consider highly stressed individuals in blue suits with high-polished shoes. Of course, while the career path is stressful it is also very well-paid. In fact, stock brokers are known to have the highest income among all financial employment. So, how can a person enjoy this type of income without having to travel to Canary Wharf each day? The answer is trading online and this article will show one how to trade in the stock market using the internet.

1. Begin With A Trading Account

Analyzing Stock Market ChartWhile this may seem an obvious step in the “how to trade in the stock market” guide, it is the most important aspect of this activity. The first step to any effective trading is to open a trading account with an online stock broker. It is recommended that one conduct some research into the stockbroker before committing to their service. Only a reputable broker should be used, and once the account is opened one should become familiar with the account interface. The more beneficial brokers will offer virtual trading training as part of their packages.

2. Learn To Read The Stock Market

There is a wealth of information available regarding trading, the stock market, and how to perform transactions. To become a successful trader, it is essential that a person learn how to read the market by learning all they can about the market. One mistake that many people make is focusing on one aspect of the game. This can lead to a narrow-minded perspective and may result in one not being able to trade using different strategies. Always be flexible and open-minded.

3. Learning To Analyze

In addition to reading literature on trading and the stock market, it is vital that a person learn to analyze the market. According to research, performing fundamental analysis during trading can result in increased profits. This is due to the fact that it tracks revenue streams and growth curves. While this can seem a tiresome task, it is important that a person continue analyzing all data to gain an “edge” over those who ignore it.

4. Start Practicing Trading

Once a person has gained knowledge about the market and trading, it is time to begin practicing trading. Virtual trading, also known as paper trading, is the ideal form of practice as it allows an individual to follow real-time stock market actions. It also offers them the chance to make buying and selling judgements that will form the outline of theoretical trading records. It is important to note that virtual trading is a simulation of stock market trading and is only an option for practice.

5. Other Forms Of Learning To Trade

While using virtual trading is one effective method in trading, there are other alternatives available. One option is additional training in trading either in-person or online. Specialized consultations and seminars are offered by experienced traders to teach “newbies” investment strategies, analysis skills, and how to develop trading techniques.

Filed Under: How To Stocks, Trading For Beginners

Stock Trading Apps And How They Have Revolutionized Investing

By Mike J

Stock trading apps make investing easy, modernizing platforms and providing instant account access and details. There are many great apps for investing in stocks. Some of them tied to traditional firms, some are for informational purposes, and then there are those newer companies targeting the generation mostly using these apps, millennials. Let's take a look at the different types of apps that fall into this category.

To technically be classified as a stock trading app, an app has to of course represent a brokerage. Traditional brokerages have released apps to make trading easy. Boring. Then there are the newer companies like Acorns and Stash that have released apps targeting millennials. It is first Tablet computer, smartphone and other business objects on woodenimportant to mention, however, that these apps, while worth a much closer look, focus on exchange traded funds or ETFs. In other words, they aren't for purchasing individual securities.

There are still many modern discount brokerages for purchasing and trading stocks. There are those platforms that penny stock traders use, too. Most of the online discount brokerages that are around now were available prior to the onslaught of the app market. Commissions are still generally the same, meaning you have to pay at minimum $4 in commissions for each purchase. However, there is one company out there that has shattered the concept of commissions and has single-handedly pioneered an investment app in which people buy and sell individual stocks commission free.

The app, although not necessarily new anymore, still scares people a little. Investors aren't used to the concept of buying and selling stocks without paying commissions. Big time investors that make huge purchases aren't worried about paying even a $9.99 commission on thousands of shares anyway. Many people out there, however, are small investors, and those commissions hurt their ROI. Plus you have to take into account day traders that don't want to pay thousands in commissions each month.

What is this stock trading app that allows you to purchase securities without paying commissions? It is the Robinhood app, and it has been around for a couple of years now. The Robinhood app even caters to day traders as long as they have a $25,000 account balance minimum. Otherwise, there is no account balance minimum, and there are no commissions ever for placing trades. You get what you pay for.

Like other stock trading apps, Robinhood is sleek and very nifty. Sign-up is simple, bank accounts can be instantly linked and funds are instantly available for trading. Robinhood has revolutionized stock trading, and the app has been backed by many big name celebrities. What's interesting, however, is that while it does have millions of users, it hasn't completely taken over the market yet.

Acorns, Stash and other ETF apps have their place. There are apps that help you purchase securities on a subscription basis vs paying a commission each time. Discount brokerages and traditional firms have released apps for stock trading. But the Robinhood so has entered the market and is set to literally reshape the way stock trading is handled in modern times.

Filed Under: Trading Apps Tagged With: apps for trading stock

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