Stock Trading for Beginners

Guides and Tips for Beginners on How to Trade Stocks Online

Stock Trading for Beginners

Welcome to the Stock Trading for Beginners’ Website

Stock trading for beginners is a challenging task. The most fundamental rule for a new investor is never gambling with the market using one’s hard-earned money. Try to understand the basis of the stock trading before starting.

Many years ago, stock market trading was a privilege only available to brokers in financial institutions. Today, stock trading mostly goes through an online brokerage firm and attainable to anyone with internet access. Stock is a symbol of the rich. With trading open to public access, more and more people become involved in trading stock directly. Some treat stock as an investment, but others may take it as a gamble. There are winners and losers.  Bankruptcy is not uncommon.

Beginners should understand the market basics and respective risk before stock trading. The purpose of this website is to provide beginners with a good foundation for stock trading. Safe trading is the goal.

This website will guide beginners step by step in stock trading. The topics will cover ‘types of brokerage accounts’, ‘types of stock trades’, ‘hidden expenses and commissions’, ‘stock charts’, ‘basic trading strategies’, and ‘how to pick a stock with a great potential’ … etc..

 

Basic Principles for Beginners to Trade Stock

Below lists the principles that beginners should follow.

  • Do not do day trading. Day trading requires high discipline that most beginners lack.
  • Do not short the stock. Short means sell stock first before buy.
  • Do not open margin account to trade stock, use cash account to trade instead. Margin account allows the investor to borrow money to buy stock, which implies a potential debt that may lead to bankruptcy.
  • Do not trade stock option. Stock option trading is complex thus unsuitable for beginners.
  • Do not trade OTC or penny stock even they are cheap. OTC stocks are mostly unlisted stocks trade on the Over the Counter Bulletin Board. The stocks are usually penny stocks offered by companies without proven credit.
  • Always start with blue-chip stock. A blue-chip is stock in a corporation with a national reputation for quality, reliability and the ability to operate profitably in good times and bad.
  • Open an account with the online brokerage firm that has a strong reputation.  Make sure it provides professional trading tool and outstanding customer service even the cost per trade is higher. 

 

A Word for Beginners to Trade Stock

A trader will treat the stock as an investment. Thoughtful decisions are possible only with adequate understanding of the market and proper control of the emotion. Contributors of this website have over fifteen years’ trading experience and went through couple of stock market crashes. Our guides will provide valuable trading knowledge and prevent beginners from common mistakes. Please stay tuned for our publications