So you are at the point where you are thinking you'd like to grow your portfolio, and you think that to buy stock is the way. No one will tell you that to buy stock isn't risky business, and that is simply because it really can be.
At the same time, of course, the reward can be high. Buying stock can be an easy thing, but before you dive right in, do yourself the favor of following a few steps.
Begin by researching the stock that interests you. The internet is a good start before you buy stock. As well, periodicals, and specialized TV stations give sound advice. The more adapt you become at this, the more you develop a feeling for a particular stock.
When you start to feel comfortable, and feel like you are at a point where you can buy stock for the first time, you will want to open an account with an online broker. This is becoming the most common way to buy stock, but if you feel like you might need a bit more assistance, you might want to try a full service brokerage instead.
This is the best place to start. You will be assured of experience and confidence, making the purchase of the stock relatively painless.
Ask the broker for information about the stock. For example, how much growth has the stock seen over the last year? How well has it done over the past five years? Ask about the company that is selling the stock. How well are they doing compared to other similar companies? Inquire about the fees to buy stock and the selling commission.
After you have made your stock purchase, you are far from done. I would venture out to say that the real important part starts now. You need to carefully examine and watch your stock.
You will be able to check your stock purchase daily so that you can properly evaluate its performance. You will hope, of course, that it will do well, but if it doesn't you will quickly need to learn to cut your losses and move on.
The stock market can be a great way to earn money and save towards retirement, but it needs to be done with prudence. Always perform proper due diligence before you buy stock, and after purchasing make sure you are aware of what your stock is doing so you can make the correct decision.
Looking to buy stock? Make sure you read James' buy stock guide now!
Sunday
How to Start Day Trading For a Living
Some people love numbers, and the thought of learning a whole new language of technical jargon thrills them to no end. They think with the analytical side of their brain at all times, and can be counted on to see the big picture, no matter what else is going on around them. These people have the super speedy brains of a numbers-based genius, nerves than can be slightly shaken, but never stirred, and just a touch of brass; they are the perfect person to take on day trading for a living.
Do not get the idea that these are just some kind of young, hip cowboy types that roam in making trades at random, raking in the big financial rewards as they do so- they must truly know their stuff and they have to have an innate sixth sense ability before heading out into the day trading world. That world, by the way, is online, so heading out is a misnomer as well. Day trading activity takes place daily, online with the more short-term trades that they move quickly. They are literally traders, rather than investors, but can reap huge rewards in a relatively short period of time. Of course, day trading for a living does carry some fairly large monetary risks, so you must know a little about the market, your limits and what your loss cap is before even beginning.
Day traders do not always buy and sell their stocks in the course of the day, some may be held onto for a few days or even a week or more, in an activity commonly known as "swing trading". Doing day trading for a living will probably encompass both types of trading activity, especially on days when certain stocks are fairly flat. Knowing the trends of stocks is always a wise idea, and while the day trader moves quickly, without the wait and see approach of a more traditional trader, they do know and understand these trends.
Before thinking about day trading for a living you must know more than just the stock market and your own capabilities. A day trader must function under certain regulations which include minimum equity requirements for a day trader account, as the day trade buying power of that account and what defines a trader as a day trader. You do not want to begin your new career with SEC trouble looming over your head. Check out the regulations and the requirements. Do your homework and possibly buy and download the applicable software to your home or office computer. Day trading for a living can be lucrative, or it can be the financial death of you, know what you are getting into before you get into it.
Do not get the idea that these are just some kind of young, hip cowboy types that roam in making trades at random, raking in the big financial rewards as they do so- they must truly know their stuff and they have to have an innate sixth sense ability before heading out into the day trading world. That world, by the way, is online, so heading out is a misnomer as well. Day trading activity takes place daily, online with the more short-term trades that they move quickly. They are literally traders, rather than investors, but can reap huge rewards in a relatively short period of time. Of course, day trading for a living does carry some fairly large monetary risks, so you must know a little about the market, your limits and what your loss cap is before even beginning.
Day traders do not always buy and sell their stocks in the course of the day, some may be held onto for a few days or even a week or more, in an activity commonly known as "swing trading". Doing day trading for a living will probably encompass both types of trading activity, especially on days when certain stocks are fairly flat. Knowing the trends of stocks is always a wise idea, and while the day trader moves quickly, without the wait and see approach of a more traditional trader, they do know and understand these trends.
Before thinking about day trading for a living you must know more than just the stock market and your own capabilities. A day trader must function under certain regulations which include minimum equity requirements for a day trader account, as the day trade buying power of that account and what defines a trader as a day trader. You do not want to begin your new career with SEC trouble looming over your head. Check out the regulations and the requirements. Do your homework and possibly buy and download the applicable software to your home or office computer. Day trading for a living can be lucrative, or it can be the financial death of you, know what you are getting into before you get into it.
Chat With The Very Best Day Traders
In this Internet based world of ours, you can find anything you have ever dreamt of with the click of a mouse. You want a new pair of shoes? You type a few words into a search engine, wait for a page to load, and boom! You are shoe shopping. Feeling lonely? Then you go to the chat rooms and you talk to someone down the road, or halfway around the world. There are chat rooms for literally everybody- any taste, any interest, any lifestyle- you name it and there is a chat room. So, it should come as no surprise to anybody that there are, in fact, day trader chat rooms, where traders can sign in and become an instant member of a vast network of people just like themselves.
Of course, day trader chat rooms are not just rooms full of "LOLing and OMG's," they are meant for serious, frank discussions of current trends, as sounding boards for decisions that need to be made and for networking. The chat room can provide additional sources of information and can point you in the right direction on issues like day trading software or where to get the best price on a new computer. Educational seminars are often conducted as part of day trader chat room networks, so becoming a registered member of a site can be in your best interest.
No trader is an island, and there are times when you need to vent to somebody, but you are the only one in the field in your home or neighborhood. Since most day traders typically do all of their business online anyway, you can join in on a discussion and get some of your frustrations out into the open without walking away from your trading. Logging onto the day trader chat room and asking a quick question can save you some unneeded stress and can provide you with a sympathetic support system that understands all too well what you are going through.
While it is good to have a community of like minded individuals to turn to, you must understand that by its very nature, the world of day trading is very competitive and you should be careful what you divulge while in the day trader chat room. Of course, there is more than just back stabbing to watch out for while chatting, be careful of anything that could be misconstrued as insider trading- you do not want to make a single entry into a chat become a federal case.
Of course, day trader chat rooms are not just rooms full of "LOLing and OMG's," they are meant for serious, frank discussions of current trends, as sounding boards for decisions that need to be made and for networking. The chat room can provide additional sources of information and can point you in the right direction on issues like day trading software or where to get the best price on a new computer. Educational seminars are often conducted as part of day trader chat room networks, so becoming a registered member of a site can be in your best interest.
No trader is an island, and there are times when you need to vent to somebody, but you are the only one in the field in your home or neighborhood. Since most day traders typically do all of their business online anyway, you can join in on a discussion and get some of your frustrations out into the open without walking away from your trading. Logging onto the day trader chat room and asking a quick question can save you some unneeded stress and can provide you with a sympathetic support system that understands all too well what you are going through.
While it is good to have a community of like minded individuals to turn to, you must understand that by its very nature, the world of day trading is very competitive and you should be careful what you divulge while in the day trader chat room. Of course, there is more than just back stabbing to watch out for while chatting, be careful of anything that could be misconstrued as insider trading- you do not want to make a single entry into a chat become a federal case.
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