Tips for Getting Started Trading Stocks for Beginners
The first time a new trader starts looking around the internet for help on how to get started trading stocks, it can be very overwhelming. There is so much out there that a new trader may not know where to begin.Tips on what to watch out for in order to get started in the right direction before you begin trading stocks:
1. Technical Analysis teaches you about candlestick patterns, indicators, and
trends but it does not teach how to trade stocks.
2. Learning how to enter a trade in an online broker account does not require a mentor. Online brokers make it easy to buy and sell stocks. Most have plenty of training available on how to use their accounts. However there is a conflict of interest with free trading or investing education provided from an online broker, since their goal is to inspire you to trade as often as possible because they make profits each time you do. They are not concerned about whether you are profitable or successful. Therefore their services should be used for one purpose only, which is as a means to enter your orders for trading stocks.
3. Guru recommendations
are not what they seem. The Security and Exchange Commission requires that any guru or recommendation
service tells you whether they are holding the stock
or not. What the law does not require is disclosure as to WHEN the guru that recommended a stock,
is selling it for profit. Gurus use this loophole in the law to make
huge profits. They are great salesmen,
and market their ability to convince new traders to buy the stocks that they already own. Then when the buying causes the price goes up, they sell the stock which most often causes new traders losses.
Go watch the Basics of the Stock Market for New Investors and Beginning Traders 12 Webinar Lessons.
Go to the TechniTrader
4. Getting a stock market education by taking courses to learn how to trade is the foundation for long time success, but the credentials of the instructor matter. The internet is full of unsuccessful Retail Traders who sell their ideas
about trading, but are not successful themselves. Trust only professional
educators with SEC approved credentials such as a Chartered Market Technician CMT and a Certified Financial Advisor CFA. Those initials will show after their name.
Here are some steps of what would be done before placing a trade in order to be profitable. The Stock Market educational course should teach you how to determine the following:
1.
What is the Run
Point Potential
2.
What is the Risk
Analysis Risk to Profit Potential
3.
Where to place the Stop
Loss based on price patterns NOT percentages, and always use Trailing Profit Stops
4.
Which Buy Order Type to use. There are numerous order types offered by online brokers, and the worst one is the At Market Order
5.
Which Sell Order Type to use, for selling stock for profit
Summary
Learning Technical Analysis, Candlestick Patterns, MACD, and other indicators is one part in the process. Start your career as a trader by giving yourself an education that will provide the means for consistent success.
Go to the TechniTrader Learning Center and watch a wide variety of training webinars including Candlestick Charts, Bollinger Bands, and How to Trade.
Trade Wisely,
Learning Technical Analysis, Candlestick Patterns, MACD, and other indicators is one part in the process. Start your career as a trader by giving yourself an education that will provide the means for consistent success.
Go to the TechniTrader Learning Center and watch a wide variety of training webinars including Candlestick Charts, Bollinger Bands, and How to Trade.
Go to the TechniTrader
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Market Education
Trade Wisely,
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Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
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All statements are the opinions of TechniTrader, its instructors and/or
employees, and are not to be construed as anything more than an
opinion. TechniTrader is not a broker or an investment advisor; it is
strictly an educational service. There is risk in trading financial
assets and derivatives. Due diligence is required for any investment. It
should not be assumed that the methods or techniques presented cannot
result in losses. Examples presented are for educational purposes only.