I would like to know how to basically learn how to trade stocks.?

Question

I would like to know if it's possible to learn how to trade stocks on the internet and if it's posible to learn and even invest for a small amount?

Answer 1

WaMu and Shamu

both took a dive.

http://finance.yahoo.com/q?s=WM

Only one of them

came up alive.

Answer 2

There a lot of sites out there to learn on, I suggest going to as many financial blogs as possible, here is a list of the 100 Best personal finance blogs:

http://www.wisebread.com/top-100-most-po...  The site that I primarily use is www.fingad.com, It has a social feel to it and lets me ask questions and get some good feedback.

Answer 3

You can learn by using the internet

Before any one jumps in and tries to buy stock, they must first decide if they are going to be a trader or an investor. (A trader is very short term holder of a stock – 1 minute to 3 months, an investor is a 6 months and beyond holder).

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.

Start 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.

Here is some reading material that can get you started in the right direction,

What Works on Wall Street by James O'Shaunessey

Beating the Street by Peter Lynch

One Up on Wall Street by Peter Lynch

The Warren Buffett Way by Robert Hagstrom

Trading For a Living by Alexander Elder

Mastering the Trade” by John Caster

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

The Disciplined Trader by Mark Douglas

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance.  (http://moneycentral.msn.com/home.asp http://finance.yahoo.com/ )

While at MSN following the strategy lab analysts to get a feel for what the pros are doing and why.  This site has some basic information for beginners. If any site offers free information, take it.

Other website that can provide instructions and help with procedures and terminology are

Investopedia - http://www.investopedia.com/  Stock Charts - http://stockcharts.com/

http://www.investorshub.com/  http://www.1source4stocks.com/



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

Answer 4

You can seach for a audio book 'Stock for dummies" in dummies series or You can get a pdf version of investing for dummies online. If u want mail me, I have them.

Answer 5

You should practice first, without risking any real money. Try a site like xearn.com - you can trade just as you would at a real brokerage, but with mock money.

You can even find good investors to learn from.

Answer 6

Your best bet would be probably eTrade or something similar since you want to do small trades.  I would do some research about stocks before investing, if you don't have the book smarts or the mathematical smarts then I don't know if this is a good idea for you.  But if you want to play around with some money for the experience then I say go ahead, just don't use your life savings.  A safe bet would to go with a mutual fund, there are tons out there for the more aggressive or more conservative.

Answer 7

This should help you, without all the technical jargon.

Answer 8

i have written some steps to follow.

You can find it from here http://www.stockbrokersnet.com/Default.a...

good luck!

Answer 9

The vast percent of people that trade stocks end up making people that do not trade stocks rich. (instead we buy and hold index funds)

If you really want to trade stocks do what Warren Buffett says...write a book on the company before you buy the stock.

Do yourself a favor: forget actively trading stocks. Learn how to invest properly:

http://www.amazon.com/Bogleheads-Guide-I...

Most people think that investing is complicated. In fact, the more complicated people make it, the worse they seem to do. People that follow a few simple principles are getting the best returns. Those principles are:

1. Do not chase past returns. People that buy funds because they have done well in the past are doing exactly that.

2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund.  Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.  

6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.