Learn How To Start Trading Stock

The majority of trading of stock is done electronically on the computer and requires more hard work than the outsiders realize. A majority of the "how to start trading stock" books on the market do not give the reader any real clue to what he might be getting in to. Because these books give the impression that making big money is so easy to do, they enter the market misinformed about stock trading in general and subsequently part with their initial bankroll.

Capital

Undercapitalization is one of the two main reasons the rookie, who is just learning how to trade stock, goes bust the first time.

Business Plan

The other reason the new player goes broke while learning, hands on, how to start trading stock, is that no business plan was written and adhered to. The business plan you develop will tell you how to start trading stocks, and it should be implemented before your first stock trade.

Trading System

Once you have developed your trading system implement it as soon as possible and it will eliminate how to start trading stock questions from your brain because it will make all the decisions for you.

Research

Do not pay a broker for something that you could do as well or maybe better. You can teach yourself how to start trading stock. Effective research of a company, by the person who is learning how to trade stocks, can pay off handsomely in the future. It requires a few steps to get the overall picture of a company. Remember that just because a company looks good in print it is no guarantee that it will make money for you. Company news, press releases, national news, buyers, sellers; all can effect the price of a stock on an hourly basis.

Developing both your trading and research skills should go hand and hand and involves a simple step by step process. The person learning how to start trading stocks must be willing, and in a position, to devote a large amount of time required to master the skills.

Selection

Select stocks that you have done extensive research on and have a price that fits into your business plan

Buy on Rumor - Sell on News

The very first book written on how to start trading stocks had an entire chapter written about this strategy. I am not sure that it always works, but if you find it works for you, then use it. Use anything that works for you even if it involves flipping a coin.