Do you think about stock trading? Want to trade stock for a living? Here are my “stock trading for dummies” tips and tricks.
I can only agree with your decision to take care of your financial future and learn information how your stock investment or trading could make your financial future much brighter. It is possible and an accessible goal.
But understand that the market is not place for “get rich quick” systems. Stock trading and investing could be profitable activities but is will take a time to learn everything that is needed for profitable results. It is the same as if you want to be a good cook or a good doctor – you have to learn and study.
How to prepare for trading stock for dummies
I have summarized my thoughts about the steps that are necessary for everybody who wants to take care of his market investments or who wants to trade stocks much actively then passive investors do. I recommend this more active approach as it can make money for you instead of doubtful prospects of any long term investment.
Prepare a plan for your equity market business
A good plan has an answer to every question regarding stock trading for dummies. If you don’t know what to do, you must find the answer to your current situation in your plan. This is basic idea I provide to everybody who wants to learn stock trading for dummies. It is major important first step.
Learn to use money management rules
Protecting your capital is the first objective for any trader. Your plan has to describe your money management rules and also risk management rules.
Understand market basics
Learn how exchanges works, how market works physically and what the role of the broker is. Find some resources of these basic information. I think that some books about investing are really good choice.
Study and test
You will discover that there are plenty of different ways to invest in stocks or to trade stocks. But not all are profitable or not all fit with your personality.
So you have to check if you can understand them and if you can use them for making money. Use some market simulator and test your system by virtual trades (paper trades). Only then you can start to make live trades.
Learning takes time
Do not expect that you will know everything after a few days. Your style improves as you trade. You have to be open to new information. Read some newsletters and try to learn from the advice of other traders.
Keep you stock trading system simple
Prefer to use simple rules for stocks selection, for entry and exit rules. The more information your brain has to process, the more complicated the decision process will be.
Read good books
As I mentioned before, do not stop studying the equity market and strategies. Markets are changing; they evolve every day. So, you have to modify your strategy from time to time. A book can help every trader.
Good books about stock market for dummies
Books are very useful source of information to learn to trade stocks or how to invest if you prefer to hold positions for several months like active investors do.
There are series of books that describe different parts of stock investing “for dummies” available on Amazon. You can check some of titles from this list.
But my advice is select little bit different books that are better I think. These books are written by Toni Turner. I like this lady’s approach to stock trading and their books are good for beginners. Check one of these books especially if you want to trade stock with shorter holding period from few days to few weeks.