Stock Market for Dummy
It is not easy to trade on the stock market if you have no financial background at all. It should not be difficult to flourish, but if you follow certain guidelines. Organized and disciplined are two very important factors in this business. Do not collect any information that you confuse. Make sure that important decisions are taken before you start risking your money.Get Best Penny Stock Pick Program
Decision 1 - Trading or Investing?
The answer to this decision can be found in the type of person you are and the time you intend to devote to the fair. Here is a guideline to help you understand the nature of the investor or trader you can.
Type: Long / Short term investor
Hold Period: months to years
Time Required: A few minutes per week
If an investor is different than a trader. Investing can be done through a broker and purchased shares may be stored for a long period of time. Daily fluctuations in the market are not really your problem and the time needed to monitor your investment is really minimal.
Type: Swing Trader
Hold Period: days to weeks
Time Required: A few minutes a day
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Swing traders usually buy and sell shares, each week, with the intention to hold their positions for only a few days, sometimes one weeks or two. As a swing trader, more time is needed for your computer, or on the phone with your
broker, and the profits made as a result of a move in a file that occurs in a short period of days.
Type: Day Trader
Hold Period: Minutes to Hours
Time required: Several hours a day
As one days is the ultimate stock market trader. This requires a good setup to provide a PC with a few monitors, and a fast internet connection. Day trading is not for everyone, but if the knee could be the most profitable form of buying and selling shares on the market.
Decision 2 - Fundamental or Technical?
Buy or sell a stock is always a result of a trading system already in place. If not, that is where the market is gambling. A trading system can be based on news and data on a particular stock, known as "fundamental trade", or they could have a system based on graphs and analysis of the file, known as 'Technical Trade' . A combination of the two can exist, but normally traders tend to stick to one or the other system.
Again, this decision is also based on the type of person you are. If you are a person who likes to watch news every day and find no problems in getting to know everything there is to know about a certain share, to learn about the company, its directors, what they actually do, their products and services than trade based on fundamental analysis could be for you. If on the other hand, you prefer working with graphics and software that can be used as a technical tool but also as back-testing systems, you probably feel much more comfortable trading in technical way.
Besides the decision
Whatever decision you take, one of the most important aspects of the trade is to maintain your system and your plan. Do not improvise during market hours. If your system is not profitable trade, you can always go back and see what is wrong at a later date if you do not trade.
This is just the beginning. You can never stop learning about the stock market. Do not rush into it just for fun. Treat it as a business, from which one days can reap big benefits.
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About the Author
Best Forex Automatic Robot Program and other Related Resources:
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Advanced Stock Market Analysis On The VIX For Week Of June 19 2010
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