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

Simple Stock Trading Strategies

Stock Market Swing Trading. Basics

I believe there are as many stock trading strategies as there are investors. Many do nothing but look for the right strategy all their lives. Some, do what works, and is profitable, and that is all they want. In my research into what works and what doesn't and what works and is profitable, I came across one simple strategy that is very easy to put in place. So, here it is.

Moving Averages

One of the ways many analysts look at stocks or industries, is through a moving average. When a stock trades in the market, it either goes up, down, or sideways. This provides a very unique and simple tool that is often overlooked by investors. Mainly because they are looking for more in-depth info than the simple moving average. However, for the laid-back investor, the moving average is one simple way to do some trading and even take some profite while minimizing the loss. This stock trading strategy doesn't require that you immerse yourself in deep research or study, either. Although you will still have to find the stocks that you want to use in your trading, once you do, though, you are pretty much set. All you will need to do is keep track of where the stock's position is in relation to a single value, the moving average. Although the moving average is usually a 50, 100, 200 day range, you really can use any other moving average. Whatever works for you. Once you start using whatever moving average you decide on, stick with it.

Research, Select, Monitor

Pick a stock that you think has a nice upward slope, and a consistently health moving average. What you will want to do is monitor the closing price of the stock during the time period you chose. So, look for a stock that has a good growth moving average. Typically, the price of the stock is on an upward swing. It may have a few down swings, but as a rule, you want a stock that is moving up. As you look at the stock check the average closing price on the time line you started with (50, 100, whatever number of days). Determine when you will buy the stock based on when it closes just above the moving average. Then monitor it's closing price for the timeline you selected - 50, 100, 200 days - and whenever the closing price goes below the moving average line, sell it. That's all there is to it.

Test, Test, and Test: Paper Trades

This is something that bears repition. In real estate, you have location, here you have test. What I would recommend you do with this simple strategy is that you do some paper trades, using a small sampling of stocks with the right moving averages. Test how this works for you and if you are happy with it take the plunge. Make sure that you take into account the cost of the buy and sell fees as they will affect the overall profit range you can expect.

Fees, Coming and Going

Often investors will test trades and start trading based on the information they get from their paper trades. However, one of the things they do not think to add into the equation is the amount of fees involved in the trade. Typically an investor pays a fee when he buys a stock and another (usually the same) when he sells. I say usually the same, if you use an online service, but not so if you use a broker. Whatever process you use to trade securities, shares, whatever, take into consideration both fees and also consider the impact of any profits on your taxes. Yeah, that too! These may affect your results as well.

Resources

This resource is one of the longest advertised on the Internet. It is one of my favorites as well and it should be a part of every investor's bookshelf. I strongly recommend you look into this as it may be one resource that will give you a leg up on your path to investment wealth. It is a simple strategy, with potential for Extraordinary Profits. This is a Proven Step-by-step Strategy to help you profit In The Stock Market. Be sure to at least check it out. Click here for more info!

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