Learning The Stock Market – 4 Tips To Short Track Success

by Bullhunter on August 13, 2010

As a newbie, learning the stock market can be a very daunting task to undertake. There are many aspects to learn in order to become successful at stock market trading, so knowing where to start can be a real advantage.

Learning The Stock MarketProbably the best piece of stock market investing advice I received, was to learn the basics of the stock market for free.

Learn enough free knowledge to make an informed decision on which market and instruments to trade, whether you would like to be a day trader, swing trader or position traders and what type of specialist knowledge you need to acquire.

So I’ve decided to put together a basic blueprint on some key considerations when learning the stock market.

1. Basic Stock Market Education

As I mentioned, it’s wise to lay the foundation with a basic stock market education, and there are two roads you can take here, either you pay for this basic knowledge or you can get it for free, the choice is entirely yours.

The information can be obtained by reading trading books, studying a trading course, or alternatively you could search for the information on the internet via Youtube or Google.

Simply search for your topic of interest, and you will be spoilt for choice on trading education videos, e-books, article, wiki’s and audios that you can absorb and quickly develop your stock market knowledge. Some key topics you may what to research are:

● Stock, options and forex markets – What are they, how are they traded, what do they offer.
● Technical Analysis – Chart types, Timeframes, Indicators & Overlays.
● Fundamental Analysis – Dividends, Price to Earnings Ratio, Cashflow.
● Stock Market Terminology.
● Money Management – Stop Loss, Risk management, Trade & Portfolio Management, Order Execution.
● Trader Psychology – Fear and Greed, Trading Emotions.
● Options Strategies – What are the different types.

Once you start digging, you will be amazed at what you will learn.

2. Stock Market Strategies

Learning what following points are, is one thing, but learning how to apply them really does require specialized knowledge and you should choose your mentors wisely in these areas.

Stock market strategies are methods in which you can tip the odds of success in your favour if executed correctly. There are many different strategies you can learn, including entry and exit strategies, option strategies, portfolio management strategies just to name a few. Learning the stock market strategies that suit your style of trading is equally important, and requires some thought.

3. Stock Market Plan

Having a stock market plan is a basis to build consistent performance, continuously improve and minimize the affect your emotions have on your trading. Rather than ego trading or trading from the gut, it enables you to follow a simple set of trading instructions and execute your plan. Learning how to build your very own trading plan is a must for every trader.

4. Stock Market Timing

Having all this stock market knowledge is pointless if you can’t read and time the markets. As Kenny Rogers says “You got to know when to hold’em , and know when to fold’em”.

Knowing what mode or environment the market is in, can help you choose a strategy to suit or even when to stay on the sidelines. So learning some key methods for stock market timing will ultimately improve your stock market success.

So there you have it, 4 great tips to short track your trading success. Take your time and have fun learning the stock market.

Guest post by..
Cade Arnel @ globaltrendtraders.com

The Bullhunters Guide
Universal Wealth Creation © 2004 – 2010

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