how do I start trading shares?

Question

Trying to get into the sock exchange and don't know where to start

Sorry STOCKS!


but im guessing there is money to be made in socks too

Answer 1

Investing shares of real companies is very exciting and full of promises...

However, before you invest some real money into online trading, it is very important to start learning about what stock investing is, how it works in principles, and how the market actually behaves. While looking at a price graph gives a warm feeling when the trend is up, it is difficult to know when the trend will change.

On top of that, the other investors who also invested money have emotions (fear and greed!) and when that happens, they stop acting rationaly, and this is the hard part to predict. The company might be a good investment but you have to be prepared to see the stock price drop unexpectedly.

First you need training and time to observ the markets and stocks. But taking one course will not get you to the point where you will make money. You will have to be very disciplined to take the time to learn and to apply what you have learned, and the best way is with virtual money (like monopoly money). This will save you from loosing real money by taking too much risks and not controlling your emotions. Your own emotions are probably what will make it the most difficult for you to behave rationally.

For access to a virtual trading environment, go to : http://vse.marketwatch.com/Game/Homepage.aspx

In this totally free site, hosted by MarketWatch, you will be issued some starting money and will place your own buy and sell orders over the internet. Each day, you will see your virtual portfolio account value increase and decrease. In their Research section, you will even find some free training tips to get you started!

So, even if you have taken a trading courses or read a few books about online trading, be careful and trade virtually for a few months. For each trade you make, always keep a log of why you bought and how you will exit that trade. When you close each trading position, review the record for that trade and evaluate your performance. After that, have a look at your trading record and decide then if you are ready to invest with real money.

With time and techniques, you may find you are able to make good profits, but take your time .

Answer 2

First, learn how to invest/trade. Then get an account with a discount broker. Please note that if you want to be a brain surgeon, there is a lot of training and cost involved. And, you will spend a lot of time just taking patients temperature before you are allowed to operate on your own. There are medical boards and hospital boards watching over you. In stocks, you are totally unsupervised. Alone. Get all the credit and all the blame. So, go get some good books (anything that promises assured profit is making money for the author, not you) and study the subject. Elder's "Come into My Trading Room" is a fine starting point. Read it cover to cover. Sleep with it under your pillow. It is that good.

Answer 3

getting started on E-trade is real easy. I already had an account because of stock that I got through a plan from my company.

But when I wanted to learn how to do it myself, they had all kinds of tutorials and helps to study. Study well before you plunk your money down. You don't want to end up with an account that means you are using their money instead of your own because you can get in real trouble doing that. I think that's called "margin".

Answer 4

the best trading software http://tradingsolution.info
i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.
if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.

Answer 5

Why would you want to trade socks? If you meant stocks, get a broker. You can do it yourself, but for the first timer, get a broker like those advertised on TV. Just be sure to closely read the prospectus and ask about their fees before you commit to anything.

Answer 6

Go to Scottrade.com and open an acount.

Get some advice about how to invest before you invest.

I suggest morningstar university, which is a free thing at morningstar.com.

Avoid penny stocks and unsolicited tips, or you are likely to lose money. Most small investors lose money most of the time.

Answer 7

Getting into the stock exchanging and trading shares is as easy as opening a brokerage account, pick your favourite stocks, sell them when they rise in price, that's it... HOWEVER, this simplicity is exactly the wolf beneath the sheep's skin. If trading shares is so simple, why are so many people still poor, right?

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com )

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.


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