Stock Trading For Dummies – 3 Simple Steps on How to Win With Stock Trading Today

Submitted by: Mark Crisp

How would you like to learn the basics of stock trading starting today? How about understanding exactly how and what it takes to buy stocks at good prices and getting excellent return on your investment almost immediately? Contrary to what you may have been made to believe, stock trading is nothing close to rocket science if you know exactly how to go about it. It simply requires that you follow a number of time-tried and tested steps and strategies then wait and watch your money pile up. This is what the aim of this “Stock Trading for Dummies” article is all about.

Here, you’ll learn 3 basic steps on stock trading that may come in handy for you once you start working on this money making concept.

1.Decide on Which Stock to Buy – The first

 

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step in this Stock Trading for Dummies tips is to decide on what kind of stocks to buy; do you want shares of starter companies or renowned ones? And do you want stocks you’ll hold on to for a long period of time or just one you’ll sell when it reaches its peak? Whatever your answers are, you’ll find this step very useful in the long run. However, you really don’t have to decide on this yet until you try step number 2 below.

2.Signup With a Broker – Signing up with a well-known broker like E.F. Hutton, CMC Markets or Fidelity Investments should be your next step. Most of these stock trading brokers can be found online but bear in mind that a good broker is one that will hold your hand from start to finish while ensuring that you meet every single goal you’ve set for yourself.

3.Follow The Instructions Provided By Your Broker And Place Your Order – This third Stock Trading for Dummies step is probably the most crucial one as it involves money changing hands. So once you’ve found a good and trusted stock broker (be it online or conventional) it’s time to place your order. However, before you buy any stock or shares, ensure that you’ve read all the materials concerning it and that you understand everything – including the terms and conditions. This will ensure that you don’t fall into any traps or loop holes as most people do.

Now that you’ve bought the stocks, it’s time to celebrate because you now own portions of what is possibly one of the largest companies in the world. After celebrating, you can sit back and watch what your investment pay dividends.

Just like every other business platforms, the stock market has a number of terminologies that anyone willing to successfully work within its circles must know and thoroughly understand. Most of these terms are used in other sectors of the business world. However, they all mostly mean the same thing in the stock market as well. For dummies (stock market dummies of course) who know very little to nothing about these terms, at the end of this article, it should be clear to you what each means. They are:

·Stocks – You, probably, often hear that new stocks or shares are issued everyday by a number of companies, but still the question “what is a stock, and why do companies issue it?” remains. The answers to the questions are simple: 1. Stocks can easily be defined as a tiny fraction of the company that’s up for sale to people like you. 2. Companies issue stock as a means to raise money to help finance the smooth running of their daily productions and activities. Clear enough? It should be since this is a snippet of what there is for stock trading for dummies.

·Capital – Just like every other business situation, in stock trading, the term capital is used to describe “the money invested by companies or individuals to start a business”. If a company issues a stock before it begins operations (highly unlikely except among individual acquaintances), then the revenue generated by selling the stocks could be seen as the capital required for starting the business.

·Equity and Debt – Since this article is about stock trading for dummies, you’d easily be forgiven for wondering what these terms, especially “Equity”, means. Basically, there are two ways of which companies can raise money. They can do this by either selling all their stocks to get the required resources or by borrowing money with promise to pay it all back later with interest. The first methodology is called Equity while the other is called debt. Most companies, or even individuals, do as much as they possibly can to avoid debt; which is why they offer their stocks in the stock market to begin with.

As far as this stock market for dummies article goes, the main benefit of stock trading is that shareholders are eligible to share in the profits of the company. In addition, if the price of the stock rises, stockholders also benefit from it, especially if they choose to sell their shares at that point.



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About the Author: Mark Crisp The Once A Week Momentum Trading System Trader Trading System

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