Every now and then, as a webmaster, strange things come into view. This page is most certainly one of them! Whilst thinking of a new topic for a page about trading and investment, I consulted my keyword list.
those possible phrases about which I could build a page, I found -
stock trading for dummies. Great news! I have bought and read an
investment book for dummies - and enjoyed it.
It turns out
that the 'for dummies' series has several titles about investing and
stocks - but none entitled 'Stock Trading For Dummies'. At least not
Their titles include:
> Candlestick Charting for Dummies
> Day Trading for Dummies
> Trading for Dummies
> Stock Investing for Dummies
> Trading Options for Dummies
> Technical Analysis for Dummies
It seems to me that this range of books highlights the complexity of the topic. However, for the beginner that is unaware of much of this complexity, the obvious things to search for are simpler terms. How would a beginner know whether they were interested in swing trading, candlestick charting or day trading?
On my bookshelf is a copy of Stock Investing for Dummies. I can happily confirm that it is well written, informative and - as with all the others in the series - offers a good quality overview of the topic without becoming confusing or overly complex. In other words, it is a great starting point.
Whilst I have not read the book cover to cover, I have borrowed a copy of Trading Options for Dummies from a friend. Again, it was a good overview and suggests many things that a new options trader will find to be of use. I must point out though that the book did not convert me into an options trader. For me at least, that game is a little too high risk!
And yet, this does not seem to explain why well over 1,000 people each month search for Stock Trading for Dummies - a title which as yet does not exist.
Whatever these people may be hoping to find - and that could possibly include you - I hope that you find use in one of the 'for Dummies' titles.
If you are just starting out but do not yet know what you will need, how about starting here:
Anyone stock trading in the modern world will need a super fast personal computer and internet connection. To attempt to trade without this would now be a little like going back to the 'dark ages'. Everyone in the market has acess to instant information, prices, press releases and updates - who would want to be the one person without these things?
This computer will ideally need to be connected to some form of up-to-date trading system. This might be a system that updates prices, or one that offers trade recommendations.
Combined with a stock trading program, it will be important to have access to some form of ongoing education. It is hard to imagine that any one person can master all the different techniques and nuances that trading offers, but we still need to try and improve constantly.
It would also seem prudent to suggest that a serious trader should also keep a close eye on their day-to-day living expenses. Though this is clearly a separate topic, unless a trader hs significant wealth to rely upon, money management is a very important topic - since money is the tool of the investor's trade. There are obviously many good programs which can assist in this task: both quicken and microsoft money have excellent reputations.
Such a program can usually be used to keep high quality records of transactions, costs, profits and losses. When tax time comes around, accurate records will save both time and money in accountancy fees.
Your author has also found that a very high quality scientific calculator is also very valuable amongst stock trading tools. There are a few on the market which are capable of forward pacing inflation and growth percentages - this is an excellent calculation to be able to make - though it is most suited to investors (more information here) rather than traders.
It will also be useful to work with a stock broker that has some pretty fancy technology. Some of the better US brokers include E*Trade and Scottrade. When buying stocks online with the intention to sell quickly (perhaps using a day trading strategy) it is important to be with a broker that is geared up for that type of business.
Follow the money
For a number of reasons NASDAQ is the spiritual home of the day trading world. This might prove to be a little too volatile for you though. As a beginner, trading minute-by-minute is very daunting, and so looking for opportunities amongst some of the mid-sized NYSE listed companies might be a better place to start. When looking for opportunities that are not common knowledge on Wall Street, it will probably be advisable to investigate some penny stocks (information here).
Of course if you have a strategy that works, it could be that there is just one stock market that suits your style, or it could open the door to capital markets around the world.
There is little doubt in my mind that both trading and investing offer incredible mental rewards for the successful. Considering that down times will inevitably come, there will also be times for intense self-reflection and personal growth. It can be quite a ride!
This continuing growth means that it is very important to ensure that you read constantly about a number of topics. These include the state of equity markets and commodity markets right now, some basic politics and economics, psychology (both of the crowd and yourself) and ever more about technique to try and improve your skills. It won't take very long to move beyond stock trading terms and basics and on to much more sophisticated topics. This is good and you should keep going - pace yourself, it is not a sprint, but month by month you should be seeing improvement in your decision making and thinking.
To visit more pages, please also visit: