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Learning The Stock Market For Beginners

By Edited Apr 15, 2016 0 0

If you would like to learn how to invest in the stock market but don't know where or how to start, don't worry. The stock market is not difficult at all to learn. You don't need to take a college course in finance to be able to profitably invest in stocks. Although there is a dizzying assortment of strategies you can use to profit in this market, one of the simplest, known as "buy low and sell high" is still a great one with strong profit potential.

To use the "buy low and sell high" strategy you must first be able to determine when a stock is at a low point. You can do this by analyzing a stock's history to see what its past high and low points were. It is also a good idea to watch the news to see if there is a news item that might affect a stock's price. A negative news item, such as a product recall, for example, could force a stock's price down. These negative news items are usually temporary setbacks for the company and may represent a good time to purchase the stock.

Checking out a stock's historical trend on a chart is another way to tell if a stock is at a low point. You can do this very easily by going to the Yahoo Finance web site and entering the company name of the stock. From there you simply select "chart" and you will be able to see its trading history. You can view a history of several years, months or even just a few days.

It is necessary to establish a trading account to be able to buy and sell stocks. This is very easy to do. You simply find one of the many great online stock brokerage companies and fill out an online application. You can also fund your account electronically and be trading in literally just a few minutes. And the good news is that because there are now so many of these companies competing for your business, this competition has dramatically driven down the cost of commissions.

These online brokerage companies also offer some truly great educational resources as well. They offer these resources to ensure that your trading is both frequent and successful. They want you to trade frequently because they earn their profits from commissions when you trade.

Lastly, the easiest way to learn how to trade and invest in the stock market is to read through a good book on the subject. Although there are a lot of great books out there, a good one to start with is "Stock Investing For Dummies," by Paul Mladjenovic.

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