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Tips on getting started in the market

  1. Learn about the market before you invest your money or start small 
  2. Stay away from Penny stocks
  3. Find high growth stock that could move up quickly
  4. Only buy stocks at a discount
  5. Open an account with only the highest quality brokers.  I am happy with Scottrade Securities.
  6. Open a margin and cash account if possible.  The interest you pay on margin is hard to overcome.  By having a cash account you can use that mostly, and the margin account when you want more leverage or to short sell a stock.  Stocks trend higher over time becuase of earnings, accumulated capital, and new technology so not many shorting opportunities are available.  Only look to short the very worst of stocks at over bought prices.
  7. Set stop losses for positions.  Don’t add to losing positions. 
  8. Read as many articles, and books as possible. I read a few books from the library when I didn’t have money to buy a book.  Jim Cramer has written several good books. Find a book on technical analysis. Read a book or take a course in economic theory. 
  9.  The  Kikr Report http://www.thekirkreport.com/ is  a great website to keep in touch with the market, and learn more about the stock market.   I would recomend becoming a member.
  10. Turn off CNBC they are not your friends. Too easy for anyone on the shows to manipulate you for financial gain.  That is the advice as have recieved from other professional traders and my experience.
  11. If you don’t have much money find a job or career to accumulate money.  Trying to work ful l time and invest actively is too diffucult.  Adopt passive trading rules to keep you interested; but, not uncomfortable. Things can change in a moment and you have to develop your feel for trading over time. Open an account and start with the idea of earning a small amount or gaining experience. 
  12. Patience and good judgement are the quickest way to achieve good results. If you are short on either try to work on these skill sets. 

January 25, 2008 - Posted by | Uncategorized | , , , , , , , , , , , , ,

1 Comment »

  1. […] Teresa wrote an interesting post today onHere’s a quick excerptStay away from Penny stocks; Find high growth stock that could move up quickly; Only buy stocks at a discount; Open an account with only the highest quality brokers. I am happy with Scottrade Securities. Open a margin and cash account … […]

    Pingback by Stocks on Sale » Tips on getting started in the market | January 26, 2008 | Reply


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