Stocks Buying and Selling?
Question:
I am new to the stocks online trading world. Before I really begin to start investing big money, I needed some questions to be answered.
1st how do I buy the S&P 500, NASDAQ COMPOSITE index and the DOW JONES?
2nd if I were to buy and sell stocks online, will the money be directly deducted or added to my account??
3rd any tips would be welcome from you guys..
Thank You
Answer:
I see you are interested in investing in the stock markets and think that you can start successfully by asking questions like this online. Just think, if winning in the stock market is as simple as posting questions like this, why are so many people still poor?
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.h...
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.
http://www.optiontradingpedia.com/...
http://www.mastersoequity.com/
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If you are asking such naive questions, then you REALLY need to not invest for yourself. put your money in an passive or index mutual fund.
It sounds like you could use the expertise of a real advisor.
I am very worried you are launching into something without preparation. My last trading course cost me nearly $4k and I'm still learning...it's not my first and it won't be my last.
I have also lost hundred's of thousands because I didn't get an education...can you afford that?
Take care...do your courses first..it's money well-spent.
Look like you are too new... first do some courses about investment.. it's not easy.one of my friend started like you and lose 6k in just couple of days...
1) It would be very wise to research before you jump into this. Although it does not take $4k etc.
In the online world you have several options in opening an account. Cyber Trade, Scott Trade, Charles Schwab etc.
All have pluses and minuses. In general, the cheapest tend to have the least available information.
Schwab is reasonable in trade fees ($12.95 per trade [stocks]. But they really shine when it comes to information available. There are a number of tutorials you can go through and Schwab will assign an advisor fee of charge.
Your first question sounds like you are searching for Index Funds although they may not be the best for your position.
Shwab has a Investor Analysis that reviews your age, wages, goals etc to guide you on what kind of investments may be the best for you.
Investing in the market is not magical or carry a specific amount of risk. It can be easily self taught and if you adhere to investment guidelines, you should be OK.
You should never invest based on emotion or a 'hot tip'. You should invest the time to become familiar with the company or fund you are interested in, know where they are going, are they structure for the future etc.
Again, this analysis is available on Schwab (and other reptuable companies as well, but I am only familiar with Schwab)
Horror stories usually stem from decisions made in haste or by emotion or lack of effort to stay on top of what is occuring to the stock.
2) Yes, the money is added and subtract immediately.
3) I suggest researching Exxon (XOM), GE, MacGraw Hill (MHP), Marvel Corp (MVL), Nike (NKE), Janus Overseas JAOSX, Harding Emerging markets HLEMX as a starting point.
I own these and they do quite well (20-25% in the last year) but you need to see if they are right for you.
If I were you, I'd call Charles Schwab or another company and explain what it is you are trying to do. Make sure they are aware that you wish to learn as much as possible and what kind of online services do they have (for free) that you can study to get yourself acclimated. Ask them what other free services do they offer which will help you become a better investor.
It costs no money to open an account.
Good luck.
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