How can I start stock trading?

I'm not in school but have some earnings. What can I do to start (i opened an account but didn't begin). I'm interested but know a lot o people who have regular jobs (50k-75k/year) that invest in some stocks... how should i begin... thanks . 

6 Answers

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  • 2 months ago

    Get coin swapping service https://mintonblock.com/

  • 4 months ago

    Instead of investing in stocks why not invest bitcoin investment with Annie Fox on Facebook and I can assure you that you will come out strong

  • kswck2
    Lv 7
    4 months ago

    Wait till the US Election is over. Don't take the risk now. 

  • ?
    Lv 7
    4 months ago

    There is a difference between investing in stock and trading.  Trading is usually speculation aimed at trying to time the market. It is a good way to lose money.

    Most traders use charts.  You can study technical analysis, which teaches you how to read charts and used indicators.

    A simple way to trade is to trade two ETF's.     QLD and QID.  QLD will make money in a rising market, QID will make money in a falling market.  These ETF's are tracking in Nasdaq.  This is much simpler than trying to pick different stocks.

    You should study stock trading, as their is an art to not losing all your money.  The win/ loss ratio is very important.  If you make $2 when you have a successful trade and only lose $1.00 when you make an unsuccessful trade, you can lose 50% of your trades and still make money.   The key is letting the winners ride, and getting out fast when the trade goes against you.

    Also, you should understand the risk of ruin.  If you are rolling a dice, and you win on even numbers and lose on odd numbers.  If you bet your whole stash of money, their is a 50% chance of being wiped out on one roll of the dice.  If you only bet 1/2 your stash, you drop your risk of ruin to 25%, because you would have to lose two consecutive rolls to lose your stash.  If you bet only 10% of your stash, your risk of ruin drops significantly.    Traders who trade to much of their capital have a higher probability of  getting wiped out.

    Bottom line, you should study a little about trading before you begin.   A good book which is realistic about trading is "The Way Of The Turtle".  Its not an easy read, but it discusses the probabilities of trading successfully.

    My advice is to become and investor and not a trader.  Buy and index fund such as the ETF SPY    or   VTI.    Save money each month and put it in the index fund.  Also, read about the benefits of Diversification. A Great investment book is Asset Allocation, Balancing Financial Risks by Robert Gibson.  Another great book is  The Intelligent Investor by  Benjamin Graham.

    Most people dream of trading to make money quickly.   It is a pipe dream to think  you can trade a $10,000 account and make $100,000 a year, or a  $ Million like some of the adds try to tell you.  Take my advice, learn how to invest wisely by reading the books I've mentioned.  Build your wealth slowly.   Forget about day trading, you'll be money ahead.

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  • Anonymous
    4 months ago

    Trading is a good way for a newbie to lose money. Investing on the other hand is a good way to make a lot of money over a long period of time.

    A low fee s&p 500 index fund is what Warren Buffett suggests.

    https://grow.acorns.com/warren-buffett-index-funds...

  • 4 months ago

    Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it and make sure you have the money to do it. Also, you must have an understanding of the rules & regulations that govern what you’re trying to do. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself. 

    Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing for Dummies” by Eric Tyson.

    To continue your education, select some of the following 

    Beating the Street by Peter Lynch

    Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea

    From Riches to Rags, by I.C. Freeley

    How to Make Money in Stocks” by William O’Neil

    24 Essential Lessons for Investment Success by William O’Neil

    The Intelligent Investor, by Benjamin Graham

    The Little Book Common Sense Investing – John Bpgle

    Common Stocks, Uncommon Profits, by Philip A. Fisher

    One Up on Wall Street by Peter Lynch

    Stocks for the Long Run, by Jeremy Siegel

    Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.

    What Works on Wall Street by James O'Shaunessey

    You Can Be a Stock Market Genius by Joel Greenblatt

    Your Money and Your Brain by Jason Zweig

    Websites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks

     - http://www.1source4stocks.com/info/stock-analyst-o... or Smart Money 

    http://www.smartmoney.com/

    Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fromad=1

    Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

    And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/ 

    and/or http://www.tradingsimulation.com/ 

    After you feel comfortable with what you're trying to do, visit the Web sites of some of the more popular brokerage firms. So if you feel comfortable with what you see on line and look at the cost and/or charges. When you are ready to go, just open an account with the firm using their on-line services. Please remember, the cheapest is not always the best. Even though you’re opening an account on line. you can always call the firm's "customer service" area for help

    Source(s): from The Street
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