Start with the stock market

Make your first stock deal can be quite scary. There are new languages ​​and symbols that you do not always understand. You can take a few simple steps to relieve your stress.

Step1. Learn the language of the transaction. Understand the type of order you can place. A market order is an order you purchased at any price when you place an order. This type of purchase is not the first time investors. Instead, use the buy / limit order. Buy / Limit Order limits the maximum price you pay for the stock. If the stock can be lower price, you get that price. The same concept also applies to the selling / limit price, but it is the lowest price you want to sell your stock.

Step 2. Decide whether you are a long or short term purchase. In order to make money in the stock market, you need to determine the plan you want to follow. Short-term buyers looking for stock easy but usually small sports and buy or sell accordingly. Long-term buyers seek stock that they think will appreciate over a period of time. Microsoft Millionaire got a penny stock as a bonus because it was worth so little just stick to it and later was glad they did it.

[1945900] Step 3. Choose a place you know. A women's stock club made wealth by stopping at the restaurant chain, visiting the store and consuming the products they bought. One of the best mutual fund managers in professional stock use this approach to become the country's top manager. When you choose a stock for long-term investment, understand the business.

Step 4. Observe the price fluctuation. Each stock has a different rhythm. Short-term buyers watch this rhythm and work with them. If you find your favorite stock and notice it has an up and down, almost predictable price, use the information to earn extra money. Set the buy / limit order at the low end of the cycle.

You may have missed a chance, but if it is a real repeat cycle, the opportunity to come back again. Waiting for you to buy the stock and immediately issue a sell / limit order at the high end of the cycle. Make sure the difference between the two is enough to cover the cost of both transactions and make a profit. If the cycle is continuous, repeat it.

Step 5. Focus on one or two stocks. When you start trading, it's easy to skip and buy a few stocks. This is diversification, but in the transaction more than the cost of making money on the profits. Focus on one or two stocks to start your deal.

[194590002] Step 6. Buy a larger number of stocks. Some cheap stock is seductive, but when you notice the volume, it is quite small. This means that when you want to sell, no one buys it. Unloading stocks becomes difficult.

Step 7. View who manages the company. Some CEOs have a good record. If you notice that the CEO has managed the three previous companies, they are belly, and he may not be bad, he may be the one who calls them off a company. Carefully check management.

Step 8. Keep track of your deal. List the date of the party, the stock price and the number of stocks if you sell the list of dates and prices on the other side. Track your profits to see your percentage. You need these records for IRS. Aim at your money 10% to 15% of the profits. In the downside market, 8% is still good.