Trading and what it is for you
Thursday, March 15th, 2007Decide what trading will mean for you
Hello Fellow Bullhunters
When you first decide that you want to trade the stockmarket, think about how you will be trading. Ask yourself the following questions:
1. Will you make it a full time or part time job?
2. Are you doing it for a possible source of extra income or to replace your income?
3. Are you prepared to commit to practice to increase your confidence?
Trading the stock market is a personal journey. Just like it is for an artist to be good at his craft, it takes many hours of practice to be good, or confident, at trading the stock market.
Different uses for shares
When investing in shares, we can use them for passive income, growth “Capital Gain” or to build an asset base. Whatever you choose, it is wise to diversify as I mentioned last week. Do not put all of your trading bank into the one stock. A little here and there should perform and grow nicely for you, with the intention to keep it active Have some stock to rent, some to grow, and some to build on.
Disciplines of trading
Some useful hints for proceeding to trade the stockmarket:
It is a good idea to develop a plan and set some ground rules. These rules must then be adhered to. Do not stray. If you stray, things can go wrong and usually do.
1. Writing down your intentions is usually best as you can then refer to your notes on a need to basis.
2. This plan must then be tested to see if it is working for your strategies.
Some homework for you…
Could you have a look at 2 stocks in the US DOW JONES that you may be interested in paper trading and research them. I would like to refer to them down the track so depending on how many comments I get and how many stock suggestions there are, we can follow these and learn how to trade them.
Get in quick….so you don’t miss your stocks getting looked at!
Angela Recchia
Graduate Support
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