Stock Market Guide for beginners: Who wants to invest

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stock market

If you are not aware of the verses of the stock market, then you should probably gather some information about the regulations of the stock market before you invest. The beginner often had a hard time in understanding the terms of stock. As a trader you are your boss, your home is your office, can set your schedule. Smart trading will help you to buy a fancy lifestyle for you.

The information from Wall Street and the newspaper is more than enough to stay the beginner in constant learning. Most people invest in long-term profit stocks. Instead of long-term profit short term and multiple profits in a month give you much more revenue from your investment.

Buying and selling your product with the short moves in the prices can be lucrative. But it can be dangerous for the non-experience trader. Therefore it is important to know the basics of trading in the stock exchange. When to buy? When to sell? How to understand the charts? Common trading strategies and limit your losses.

Basic tips:

Knowledge is power

The thing that will help you to stand against big fishes in the stock exchange is your knowledge. Gather knowledge about market ups and downs from different sources. Learn the basics procedures of trading. Keep yourself updated with the latest stock news and prices. Do your homework; make lists of the stocks you are interested in. Visit reliable finance websites to keep yourself up to date.

Set an amount

Access how much money you are willing to risk. Most of the traders risk 1- 2 % of their money in trade. If you have 40000$ to invest and you are willing to invest 1% of it then your maximum loss per trade is 400$. Set aside a fund that you can trade with and are prepared to lose.

Set a time for trade

Trading requires time- so you need to set a time for stock exchange. The trading process requires traders to track the market and different opportunities, which can only happen when you spare some time for trading.

Small trades

Start with small trades; start with one or two stocks. Wait for a profitable opportunity. Beginners should concentrate on minimum sales and purchase.

Execute order time

Most of the orders placed in the market early as soon as the market opens. A player must recognize the patterns of charts and make their sales and purchases according to the pattern. But as a new trader, it is better to read the moves for 15-20mins before showing your cards. A newbie should avoid making any move through the rush hour.

Be realistic

Most of the trader wins only 50-60 % of their trades. The point is making more on your wins than that of your loss in total losses. Take the risk to a limited % of your investment. Make sure entry and exit strategies are clearly defined.

Successful traders may have to move fast but don’t require to think fast. Stock exchange/market tests your nerves on many occasions. Learn how to keep away from greed and fear. All decisions should be taken logically not emotionally.

Reference:

https://www.nerdwallet.com/article/investing/how-to-invest-in-stocks

https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-coronavirus-stock-market-rally-amazon-stock-new-buy-point/

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