I want to trade stock ???

Question

HOW should I start ??
Is it safe??
What company do U suggest??

Answer 1

Congratulations on getting started. It’ll help you more than you know!

Your first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.

You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!


How to invest depends on what you already know. We'll assume that you're beginning!

A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.

Another good one is one of Jim Cramer's books like Real Money (he’s got a few).

But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com

For free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc.

If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.

Next, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.

Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).

For discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter

I know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in.

As you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.

You can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc). And yes, you can definitely deal easily online.

Start slow, then as you figure things out, you can buy more shares.

Congrats again on getting started. If you have any questions, please let me know.

Hope this helps!

Answer 2

1) You need a broker. Try:

www.tradeking.com
www.scottrade.com
www.zecco.com

read the fine print before deciding on one.

2) Risk is involved with investing, and largely depends on how you invest the money. For example it is far riskier to invest all of your cash into one small company, than it is to buy a mutual or exchange traded fund that holds stock in hundreds of companies (one small company may go out of business, but every company in a fund won't). On the other hand a single small company is much more likely to double than an index fund. In general there's a tradeoff between risk and reward.

Just remember that over the long term the stock market goes up sharply. For example I'm 25 now, but can remember in high school when the dow passed 2,000. It's at 13,861 now.


3) I'd recommend an etf if you're starting out, both because it is safer and also because its hard to diversify properly if you don't have a fiarly large amount of cash. Try IVV or SPY.

If you're feeling more adventurious try Genentech (DNA) or Best Buy (BBY). These are two well run companies trading at reasonable prices that ought to do well over the long term.

Answer 3

First get an online broker and get your account set up, it's easy. Eliminate emotions and it makes it a lot more safer because the number one reason people lose money is because they see stocks going up, they buy, stocks going down they sell. Their emotions take over. Do not look for opinions on what stocks to buy from magazines, shows, or the boards like this. Bad mistake. It'll cost you. Search for companies with as little debt as possible, that is key, and find stocks under $10, they move up the most.

Answer 4

You can lose!!

Remember this fact!

Use some money to learn more about trading.
You'll need to do courses..or you will lose your money...

guaranteed!

Putting money in the market means you need to protect
it from market falls.

If you are seriously prepared to do this, I suggest

you learn how you can protect your stocks with options.

I'll mention some resources that will help you start.

Go here for options:


MarketClub videos:
http://www.tutorhelp.com.au/alertlist0.html


Money CentraL
http://moneycentral.msn.com/investor/research/welcome.asp

Cnn Money:
http://money.cnn.com/index.html?cnn=yes

Books Online:
http://www.tutorhelp.com.au/Tresources.html


ETF's
http://moneycentral.msn.com/investor/research/etfwelcome.asp?ETF=true

Options Course:
http://tinyurl.com/22t7l5

Free options teleseminar
http://tinyurl.com/2umbho

Answer 5

Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

http://www.investingtutorial.info/

wish it will help you.

Good Luck , Best Wishes!

Answer 6

http://finance.groups.yahoo.com/group/TradingZoom/

- start with the books on the front page.

It is risky and you can lose most of your capital if you don't know what you are doing.

But you can make good money if you know what you are doing.