How Do I Trade Stocks As A Beginner
Some may say if you are a beginner you shouldn't be trading stocks. But that sentiment ignores the fact that even current expert stock traders began as a beginner. Whenever you decide to make your first trade you are by definition a beginner. But "beginner" doesn't have to equate to "dummy".
Obstacles For Beginner Stock Traders
It's easy to see how good or bad news about a company can make its stock price rise or fall. Everyone will avoid the stock of a company with bad news. But it may take some time to learn about how volume, moving averages, moving average convergence and divergence, resistance levels, and support levels affect the price of stocks. You can add to that the effect of interest rates, the economy, politics, and other factors to confuse things even more. So a beginner will have to take some time to become educated. An educated beginner can become successful fairly quickly as a stock trader, but that education need not take years.
Beginners Can Start With An Advantage
A well equipped beginner can also become successful quickly. Equipped how? With tips and a head start. Money is made as a stock trader by finding stocks that can be bought at a low price and sold later at a higher price (buy low, sell high - no duh). Where are the stocks with a low price - relatively speaking - and relative to what? Well, winning stocks, the ones that can be bought low and sold higher later, are everywhere in the market, even on days where the market is down. Timing is what matters. Most successful stock traders subscribe to services that spotlight stocks ready to pivot and make a move. (The article you are reading now appears on such a service (this site)).
The Most Excellent Investor Advantage
Some stock traders prefer a service based on news or earnings fundamentals, others prefer technical trading indicators, many prefer both. This site spotlights stocks in watch lists based on a combination of technical indicators that signal that a stock is relatively low compared to the market in general, stocks in its sector, or to itself, and indicators signal the stock has enough interest from the market that it is ready to pivot up in price. Starting stock research with a watch list can give a trader a head start. The remaining activity is to check for news about a stock to make sure that there isn't any bad news that would make the relatively low price more expensive based on new risk.
To allow time to become familiar with using our stock watch lists all Most Excellent Investor membership levels begin with a seven day free trial period. During this trial period allows time for daily back testing and paper trading putting no money at risk.
With at least some education and the head start that our watch lists can give a beginner can mean less stress in becoming a successful trader.