Wednesday, March 17, 2010

What are some tips on learning how to make money from trading stocks?

I want to be able to generate money on the side from my main job by trading stocks. I want to learn how to generate money from short term investments.

What are some tips on learning how to make money from trading stocks?
IF you can't watch those suckers every minute of the day, then you better forget trading stocks. Hire a pro to invest for you or you WILL lose trading stocks, it's dangerous and today even more so. I do trade off and on and I do ok and every year I'm positive. But there are so many variables in that jungle I couldn't even begin to tell you here.





FOUR rules I always follow.





1.) Never buy a hyped up stock on the day it is being hyped. It will come crashing down just as fast. You'll get burned for sure that way.





2.) Don’t just buy a stock because it’s got news MAKE SURE the company is solid. Check out the financials.





3.) NEVER NEVER NEVER buy penny stocks NEVER.





4.) And the most important rule is NEVER rush into any trade, always take your time and think carefully about every trade you make. Know exactly what you are doing. DO NOT be greedy, got a profit take it! And KEEP YOUR FINGER ON THE TRIGGER! KNOW WHEN TO GET IN AND OUT.





And if you have hundreds of little trades at the end of the year like I do be prepared to go through HELL doing you taxes. They want every detail, so much fun. And yes, they will come after you even if you lost money. And no the tax software doesn't do it all, your little fingers will. Just so you know.





And no you won't get rich quick, or at all, doing this. And if you are rich it's a good way to become poor. So be very careful the system is rigged against the little guy, they do know how to get you.








Ok?
Reply:The best way to learn how to trade stocks or currencies or commodities, etc. is to "paper trade". "Paper trading" is when you pretend you're opening up positions in the market whether a buy or a sell. Write down your position (i.e. buy 1000 shares of MSFT), then at the end of your trading period (whether within the day or week or month, etc.), review your trade and research on why you made or lost money. Researching is when you truly learn the fundamentals and technicals of trading. A good source of research is going to websites which focuses on the specific security or commodity you are trading - i.e. for stocks - Wall Street Journal, for currencies - Forexnews.com, etc. What I use for research is Yahoo! Finance and Bloomberg.





When you're comfortable on your strategy in going in and out of the market, that's when you trade with real money.





Good luck on your trading!
Reply:Pick the best stock broker, one with low fees.., it took me some time to see that most of my gains were lost to the fees i paid to actually buy stock and sell it, i suggest zecco, they were recently given a great review by wall streets "smart money", and are the ONLY ones who offer free stock trades.





http://friends.zecco.com/r/a7a2877caab81...
Reply:Check out this tutorial:





http://ezinearticles.com/?Make-Money-Thr...
Reply:Think of it as a casino and your gambling. Now unless your an insider, good luck.


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