If you are not aware of the verses of the stock market, then should probably gather some information about the regulations of the stock market before you invest. The beginner often had a hard time in understanding the terms of stock. As a trader you are your own boss, your home is your office, can set your own schedule. Smart trading will help you to buy a fancy lifestyle for you.
The information from the Wall Street and newspaper is more than enough to stay the beginner in constant learning. Most people invest in long-term profit stocks. Instead of long-term profit short term and multiple profits in a month give you much more revenue from your investment.
Buying and selling your product with the short moves in the prices can be lucrative. But it can be dangerous for the non-experience trader. Therefore it is important to know the basics of trading in the stock exchange. When to buy? When to sell? How to understand charts? Common trading strategies and limit your losses.
Knowledge is power:
The thing that will help you to stand against big fishes in the stock exchange is your knowledge. Gather knowledge about the market ups and downs from different sources. Learn the basics procedures of trading. Keep yourself updated with the latest stock news and prices. Do your homework; make lists of the stocks you are interested in. Visit reliable finance websites to keep yourself up to date.
Set an amount:
Access how much money you are willing to risk. Most of the traders risk 1- 2 % of their money in trade. If you have 40000$ to invest and you are willing to invest 1% of it then your maximum loss per trade is 400$. Set aside a fund that you can trade with and are prepared to lose.
Set time for trade:
Trading requires time- so you need to set a time for stock exchange. The trading process requires the traders to track the market and different opportunity, which can only happen when you spare some time for trading.
Start with small trades; start with one or two stocks. Wait for profitable opportunity. It is advisable for beginners to concentrate minimum sale and purchase.
Execute order time:
Most of the orders placed in the market early as soon market open. A player must recognize the patterns of charts and make their sales and purchases according to the pattern. But as a new trader, it is better to read the moves for 15-20mins before showing your cards. A newbie should avoid the making any move through the rush hour.
Most of the trader wins only 50-60 % of their trades. The point is making more on your wins than that of your lose in losses. Take risk to a limited % of your investment. Make sure entry and exits strategies are clearly defined.
Successful traders may have to move fast but dont require to think fast. Stock exchange/market tests your nerves on many occasions. Learn how to keep away from away from greed and fear. All decision should be taken logically not emotionally.