If yes, then look no further because in this ‘stock market basic’ article, you’ll learn a number of tricks that can get you up and running within a few days starting today. Follow the steps below to begin your way to a successful stock trading career.
1. Create a portfolio with Finance.Google.com or Finance.Yahoo.com – This will allow you to trade stock without using real money; which means you get to practice as much as you want and see how you do without using real money before jumping into the real deal. You can start by giving yourself as much money as you $200, sometimes more, to try out the market.
2. Start Testing and the Stock Market – Now that you’ve created your account with no real money, you may commence buying ‘dummy stocks’ straightaway. Since this is ‘Stock Market Basics’, the stocks you want to focus your buying power on are consumer staples, consumer discretionary, and healthcare; things people use on daily basis. These are known as “DEFENSIVE” stocks that will survive through good and bad times in the economy. Examples of such stocks are: 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco and more.
The underlining principle here is that everybody’s got to eat and clean up regardless of the state of economy? You bet! Anyway, many of these companies survived through the Great Depression and will survive the current economic downturn no matter what; meaning they’ll be around for a long time to come.
The main advantage of buying these DEFENSIVE stocks is that you can sleep at night knowing your money is doing well. However, there are NO guarantees that you won’t lose money; it’s just that these stocks are the best and safest for people like you who are looking for tips on stock market basics. In addition, they pay good dividends too which is the main thing.
3. Step 3: It’s Time to Start Buying Stocks – Once you’ve tested the stock trading waters and are comfortable, you can finally put in some real money to buy real stocks. A good place to start is at ScotTrade.com (or similar) because they’re excellent stock trading platforms for beginners.
In conclusion, here are a couple of advices for you here: Since you’re reading “stock trading basics”, chances are you’re new; so DON’T DAY TRADE. If you do, you’ll end of being a rookie in a world of professionals. Also, day trading involves a lot of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.To learn more, if you want to see the full review, click here.