2008-01-03

Information For The Beginner At Stock Trading (1)

The stock markets are really unpredictable.

People say that stock market is risky.

What's wrong with that?

Each business is risky but for those who feel that stock trading is a gamble, it is important for them to know that it is not a gamble, but it is that trading unit that needs risk management at much higher levels.

Many people say that market is expensive, but it all depends on what type of investor you are and what you invest in.


Traders should follow always the market trend.

A share going high does not mean that it is a good share to invest in.

It is important to check out the performance of the share including the past moves because a share going up can drastically come down once the investors start selling it.


Before you can begin investing, you are going to have to open a brokerage account.

This account will allow you to buy and sell equities, options, bonds, mutual funds, treasuries, exchange-traded funds, real estate investment trusts, and more.

Each time you execute a trade, you will pay your broker a commission.

A broker will act as an intermediary between you and the stock market.

He or she will seek out buyers for stock you want to sell and find sellers of stock you want to buy.

Now anyone can start trading online - the only thing an investor requires is an online account.

The process of opening an account online is quite easier and hassle free. As a successful investor, you need to plan a good market strategy.

The very first step that you need to take is to find the best industry.

Brokers that are available online take care of your funds.

The stockbroker buys and sells stocks as per your direction.

So, if the share price goes up and you want to sell stocks online - you can do that with few mouse clicks.

In the same way, if according to your market analysis, you think that a particular company share price might fall - you can sell those company shares immediately.



By Indrani Bhattacherjee

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