Posted on 22 October 2012. Tags: beginner stock trading
When you are a beginner stock trading should not be the source of your daily income. That is a sure recipe for disaster. At the outset, your goals should be to learn about all the tools available to help you. For example, a stop loss order can force the sale of your stocks when they lose more than a certain amount of money. This prevents you from losing it all just because you took your eye off the stocks for a few minutes. You should also want to have a decent understanding of how to research fundamentals and balance sheets.
You should never invest money that you could not stand losing. Following this simple tip can save you a lot of heartache. Many traders will say that this prevents you from winning big. The problem is that very few people make fortunes from one brilliant investment. You are much more likely to earn a living and remain satisfied with your investments if you focus on making conservative but smart moves.
While you are in the beginner stock trading phase, it is better to let an opportunity pass by than to invest ignorantly. If you think that something may be a great investment at a certain price but do not have the time to research it, your best option is to let it pass. Fundamentals come first.
Always keep your investments spread out. Resist the temptation to sink all your funds into one promising stock. The best stock portfolio represents multiple interests. Until you have left the beginner stock trading phase behind, you should focus more on learning than on trying to become rich overnight.
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