I Would Like To Know The Short Cut To Learn The How To Trade Like A Professional.?

Question

I come across many and many so called Gurus out there trying to teach how to trade.
As we know we have unlimited access to the Internet but limited time to view every single page.
Right now I am having a tough time to review who has the correct path to learn how to trade stock in the fastest and precise way.
Your contribution will help me tremendously. Thank you in advance

Answer 1

Here's what I think you need to know about stocks and trading in general:
A] The market is a living, breathing thing. You are trading people. You are not trading stocks or anything else. On Wall Street there aren't any gifts.

B] You can earn money when the stock you choose goes up!
You dan earn money when the stock you choose goes down.
You can earn money when the stock you choose goes sideways.
I KNOW THIS FOR A FACT: I earned money ALL three ways.

Keep in mind: trade in the direction of the market. Many times the stock will trade the same way as the market is going.

C] Bulls (Buyers) earn money.
Bears (Sellers) earn money.
Pigs get fat.
Hogs (Greedy Traders) get slaughtered. Those people lose the money in their trading accounts.

D] Trees don't grow to Heaven - neither do stocks.

E] For each and every strategy, you must have a set of written rules for that trading strategy.

F] For each and every trade: Plan the trade AND trade your plan. Don't "chase" or go after any stock. Let the trade come to you.

G] When you break your own trading rules, you have a very high risk of breaking your trading account.

When the trade goes against you - you are losing money - get out!

H] V.I.C. P.I.E.
Volume Is the Cause. Price Is the Effect.

I] Stay away from penny stocks or stocks ending in .BB AND .PK; although these are very inexpensive they are EXTREMEMLY risky.

J] As far as those promotions and literature you get in the mail: Do your OWN investigating and checking out of that stock.
(Refer to Rule A])

K] When you open your trading account, you want to open it as a "speculator" AND get approval for a margin account AND to trade options.

You cannot be a day trader or a scalper with a balance less than $25,000 U.S. in your trading account.

When you open your account, you will be given LOTS of literature to read AND understand. READ IT AND UNDERSTAND IT!

L] Two free wonderful on-line sites are investopedia.com AND yahoofinance.com - yes, there are many others.

I haven't scratched the surface. This is the bare essentials or facts. THERE ARE MANY MORE!

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Answer 2

All great and successful traders need to follow a set of rules in order to be successful.

They all have gone through the learning part, failure part, technical and fundamental part and the emotional part during trading.

With these and maybe more on the experience, you will grow to become a better trader by the day. But all these take years to achieve.

Almost every Trader has their good and bad times. It is how they maneuver through it and still survive in the market.

As for you who has just started, I would recommend you to research the successful traders like Benjamin Graham and Warren Buffet. Always ask yourself why and what are they doing to make them so successful.

The are another few books I would recommend and they are The Way Of The Turtle, Rule No.1 and How To Make Money In Stocks. After reading those books for at least 2 to 3 times, you will have a clear picture of what investing is all about.

I hope you will not make the mistakes like what I did when I first started out. There is NO SHORT CUT to become a successful trader.

Answer 3

Trading stocks is a loosing game. If all these guru's were as great as they claim, they wouldn't be trying to sell their system to anybody, they would be quietly making their fortune trading stocks and they would keep their system a secret.

On the other hand, if you are interested in becoming an investor in great companies, rather than a trader in stocks, study Warren Buffet.

Also note that if you invest in a diversified portfolio of foreign and domestic, broad market index funds, you'll probably do better than the vast majority of stock pickers.

As a bonus, investing in index funds requires a lot less work.

Answer 4

The short cut is... to identify the most successful traders and learn how to trade like them.

Many successful traders often stay in the game the longest because they tend to lose the LEAST amount of money on trades.

Successful traders learn to calculate what the risk of losing money is and how much they are willing to lose before they trade and after the trade.

Books I have read over & over are "Jesse Livermore World's Greatest Stock Trader" by Richard Smitten and "Buffett The Making of an American Capitalist" by Roger Lowenstein. Both books chronicle very successful traders.

Answer 5

there's no short cut,u must work in this line at least 2-3 yrs in getting more experience as stock trading is not so simple as what u think.take time to learn,ok?everything starts from the bottom.

Answer 6

You can join:

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

- the best free stock picking site for small caps - and follow the best picks for a while. Plenty of good traders to talk to.

Answer 7

there are no shortcuts. It takes YEARS of dedication and research to be a savvy investor, studying 8-10 hours or more per day.