7 Important Stock Trading Tips For Beginners

So you are a newbie in stock investing well I was a newbie once and I admit that I have done lots of mistakes when I was new at that time there was no one to direct me to do right trading but you are lucky to find this article here I am going to share my trading experience and tips so that you don’t repeat those mistakes which I have done.

Day Trading or Intraday Trading: It’s something which you should avoid when you are just starting it’s not that day trading is bad but risk involve in day trading is also high and it’s not a place for starters you should first gain experience I mean a lot of experience then exploit this sector otherwise you may see some major loss of your money here.

Getting Emotional With Your Money: When you start trading think of it as a business sometimes people become emotional when they face loss of their money and to cover them up they hold their stocks thinking that market will rise but doing such activity they generally loss even more money so stepping out when you reaching the stop loss point is the key to minimize losses rather than holding up. It’s said that “if you want to win something you should also learn to lose”

Patience: Stock markets check the patience of investor. Did you know? Warren buffet once holder stocks of Motorola for more than 4 years when you think of investing you hard earn money you should also prepare yourself for long term waiting.

Long Term investing (A best investment option for starters) : If you are just tasting the water of the market you should avoid only short term investing and think of some long term investing too like you can buy 50% of you investment on some high profile reputed stocks on companies which has strong management and has stable growth for long term and the rest of you money in short term to improve your trading skill the half or your money will acts as a risk minimizer when anything goes wrong it’s like insurance of your investing.

It’s a game of Experience: Experience comes from time the more time you spent on investing the more you are going to earn. There are millions of factors that affects stocks market movement I know it’s impossible to learn them all but you can learn at least as much as you can. Don’t’ forget even the most experienced smart traders are also learners but they have learned much to trade in profits.

Buying Stocks Right Away: New investors specially young investors are in hurry to earn money fast and they just buy any stocks they came across without investigating much details, but this is very risky mistake you can do as an investor a right way is to read all the latest news and activities of the company this will give you an idea about how company is performing currently and there future plannings. This will help to pretty much predict the movement of their stocks.

Creating a portfolio: You have 5000$ to invest how would you invest that? Most new investors just select one individual company and invest all their money in it and when the company stocks falls they get heavy losses, so right way of investing is by creating an investment portfolio.

How to do that? Either investing in individual company stocks you should invest in multiple company this way the risk of losing is also divided eventually risk is minimized so when one of the stocks falls the other will get you profit or at least cover up your money.