| Stock market investing guide |
It is said that the first step is the hardest. You fail to take this step at your own cost. Step one is developing background knowledge. It is important to know how to evaluate what you discover or are told. In order to do this, you should read up on the basics. This is a life-long process and if you are not interested in learning then save your money because you will surely lose it. Be smart and if you don’t have the information you need, research it and ask for help. Go with your intuition too, and if need be, ask others who have been there and are successful, for their help as well. For your stock market investing training we strongly recommend that you pick a first year college book on statistics.
Stock Market Investing for fun and profit
Stock Market Trading. BasicsStock Market swing trading is the next best thing to day-trading. It is one way to get your blood running fast, and your adrenalin jumping way off the charts and the closest you can come to day-trading.Traditional TradingFor many Stock Market investors, the rule is to go for broke. Invest all your available money on a particular stock, mutual fund, or something similar. One of a kind and then watch it ... not sure if it will go up, down, sideways, or what it will do, if anything. This is not a good way to invest. You might as well put your money under your mattress and hope it will be there and worth anything when you finally decide to use it. Traditional Trading PitfallsThe problem with traditional trading is that it no longer works. The market does not behave like it used to, when you could buy a stock from a blue-blood company (Ie: GE, GM, Microsoft, and others) and expect the stock to behave in a normal way. In many instances, the stock doesn't exist, is worthless, or has no real foundation to it. Bankruptcy can and does destroy the value of stocks far faster than anyone imagine. If you are an investor for the long term, who buys and holds, you will be losing money. Today's trader needs to be aware of what is happening almost daily and be able to make decisions on the investment as soon as is possible. Stock Market Trading fundamentalsAre there any fundamentals that still apply to today's marketplace? Maybe. You can invest in some companies that are still returning some good results or you can gamble on those that may seem to be in a position of strenght irrespective of what the marketplace will do. Tough to predict though. Think banking (in the US primarily) where the government is now dictating what can and can not be done. There is no guarantee that any industry will be around and healthy enough to return any profits on an investment. So, what can you do? Rule of ThumbIt is very hard to come up with a rule of thumb for today's trading marketplace. However, I would suggest that having your investments liquid, for the most part, will probably be a good idea. Either in a cash market account of some kind or invested in gold will work. If you are invested in a mutual fund or market account, make sure that you have international stocks or investments as your highest investment. As far as investing in any specifics, invest no more than 20% of your investment capital on whatever investment you are working with. If you lose on the investment, your loss will be a lot smaller than if you invest more than that. I wish you the best in your investments.
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