Friday, September 19, 2008

So You Want to Learn About the Stock Market

By Jimmie Newell

Not so long ago, almost the only way the individual investor could trade in the stock market was by employing a stock broker to place trades for you.
With the advent of the Internet, and online stock market brokerage services this has changed. For the investor who is willing to learn how the stock market works, learn to manage stock market risk, learn stock market terminology and make good timely decisions trading stocks without the help of a broker is a good way to make a profit.
Because you are choosing and analyzing your own investments and not depending on a broker to help you, the costs or commissions are much lower. Of course when you eliminate the broker the services they used to perform are not available either, however most of the online brokers do provide a vast array of basic services.
All of them have links to quotes data bases and stock market listings, some may be delayed a few minutes and some may be live. Most have charts of the individual stocks available; some have stock market tutorials built into their sites. Most will maintain portfolios and watch lists for you; they will of course provide a method of placing orders and selling. Some will provide stock market analyst reports sector reports, earning estimates, and many other historical and technical analysis tools.
If your chosen online broker does not supply everything you need, there are a wide variety of free services available on the Internet. Most of the major portals (MSN, Yahoo, etc) have a Money or Investing section where you can obtain all of the information you are likely to need.
If you are diligent in learning how to read the stock market how to analyze a stock, how to set entry and exit rules, and follow them, playing the stock market can be a profitable replacement for a part time job.
The importance of learning to ignore the "noise" cannot be over stated. Television, print and Internet ads will bombard you with information on trading tips, and trading systems, all professing to be the "holy grail" for making a fortune. You need to learn to filter all of this information and focus on the basics of trading stocks.
There are many types of trades available, including stocks, bonds, mutual funds, options, futures, commodities, penny stocks, etc. There are also different markets to trade in, such as Forex for trading currencies, commodities markets for such things as food and crop products, gold oil and so forth. All of these trades and markets offer different levels of risk, you need to be sure that you understand the risks and rewards of whatever trades or markets you decide to focus on.
Start with learning how to trade stocks, once you are making consistent profits, explore something else. Get good information, study things like The Wall Street Journal, Investors Business Daily, The Financial Times, check the financial offering on television, and study books on investing.
And most importantly enjoy the trip, and spend your profits wisely.
Jim Newell is a writer and Internet publisher for a variety of websites, newsletters and publications. For more information on Stock Market Investing please visit http://www.sys-adsystems.com/stockmarket
Article Source: http://EzineArticles.com/?expert=Jimmie_Newell

No comments: