The first thing you need to do if you are a new investor in the stock or futures markets is have a solid trading plan.
The trader needs to have a plan so you will not lose all your trading capitol. Knowing that news and other market conditions will happen and can effect a trade. This is where a trading plan comes into focus.The good trader is always studying what the markets are doing. Knowledge is always sought after to make sure you are placing less risky trades.
Stock or futures traders are always analyzing the fundamentals of a company they are about to invest in.This keeps them ahead of the competition and the novas trader. The financials of a company will tell the trader how the company is doing and whether he should invest in the stock of that business. New traders need to look at a business's balance sheets and determine if their growth is constant or staying even. Take a look at their cash flow and if they have money for upgrades or other investments. Check out the daily stock trading volume if investors like the stock then the trading volume will be going up.
Take a look at the short interest in the stock. If the company has good news the shorts could get caught and the price of the stock will go up as they cover their shorts. How is the trend is it going up or is it flat? Many times a stock will consolidate before making a move up. Make sure to check the yearly high and lows to see if the security is at one of those points. Remember to set stop losses and take profits this will help make you more money in the long run then trading blindly. Look at the call and puts on the stock this could show where the futures are heading on the stock.
How much capitol do you have to invest. This is most important especially when you start out since most new traders will have a small amount of money to invest. Your trading plan should include how much money you are able to lose and how much you can put at risk. You can read the different investment forums where there are experienced traders and set a percentage on the money at risk. When you decide to start trading remember you are going up against big brokers and experienced traders so plan accordingly. You need to stay focused and stick to your plan,this is not a game to take lightly. Your knowledge of the company will give you a head start on making some money.