Beginners: How to Trade the Stock Market
You will learn a complete, easy-to-learn trading process that hones skills quickly and prepares you for trading.
You will enjoy the learning to trade at your own pace, when you want, and at home, in your spare time, when it is convenient for you. You don’t need to travel to a trading school.
Every student is unique, and you will be taught how to customize your trading style to meet your goals and needs.
Start now, watch training webinar. Be sure and take notes.
We are serious about helping beginner traders become successful traders.
Our no-cost training webinar will introduce trading techniques you may not have heard about. It is important information all new traders should have to begin their trading education.
How to Trade Stocks for Beginners
Learning How to Trade Stocks is all about learning a trading process that gives you a step-by-step method that you follow every time you trade.
When you have a methodology that is laid out in a simple process, learning to trade stocks becomes logical and something anyone can learn.
Here is How to Trade Stocks if you are a beginner:
- You will use a scan and sorts via computer software to find stocks based on your specific criteria for trading. You need to learn how to choose specific criteria to set your scans properly for your trading goals.
- You will take this small group of stocks and look for a Buy Entry Signal. These are specific Candlestick Patterns that are very reliable.
- You then also need to use a set of indicators that together confirm that the Buy Signal is strong and that the stock will move.
- You must also use Risk Analysis to determine if how long it will take the stock to run, how many points it can run before it stops due to resistance or profit taking by other short term traders.
- What entry price to use when placing the order with your broker. You must use a specific order type, NOT a limit order, to force your broker to give you the best execution. Using a limit order allows your broker to control your entry.
- You need to PLAN your exit based on chart patterns called resistance levels so that you sell the stock before it encounters profit taking which can cause the stock to drop back in price temporarily.
If you are a beginner, learning how to trade stocks may seem daunting at first, just remember that trading is a skill and any skill that is learned using a set process will be easier to learn and develop much faster than a skill that doesn’t have a complete process.
Many times beginners assume that if they learn some technical analysis, or MACD crossover signals, or a few Candlestick Patterns, that they have “learned how to trade stocks”. Unfortunately, these are only snippets of what you need to learn. These are what we call “teaser” training which makes you believe you can trade. The primary reason beginners lose money trading stocks is they do not have enough training, education, or skill development to succeed.
To avoid the common mistake most beginners make, you need to realize that trading can be a hobby, a part-time endeavor for extra income, OR a career. If it is just a hobby, then it doesn’t matter if you make money or not and attending webinars and seminars, and reading stuff online is enough. Hobby Traders are just having fun trading and making profits is not the most important thing.
If you want to trade part-time, you will need to learn more than what is taught by your broker or charting software company. They can give you the basics but basics are not learning how to trade. You will need to learn a complete trading process that covers every aspect of trading from choosing the best stock to trade to knowing when and how to take profits without losing what you have gained. TechniTrader has specific courses designed just for part-time traders who do not have all day to trade.
If you want to be a full-time or career trader, you will need to approach trading as you would going to college for a career. TechniTrader has courses designed for traders who are serious about trading as a career and as a business they do out of their home or office full-time.
How to Trade Stocks Online
Learning How to Trade Stocks Online is quite easy.
- You will need to open a Broker account.
- You will need to learn how to enter an order to buy a stock in your broker account.
- You will need to learn how to find stocks you want to trade.
However, this is not what you really need to learn. Trading Stocks Online is more than just getting a broker account and looking at a few charts. It is more than learning a couple of technical analysis patterns or candlesticks.
Trading Successfully Online requires understanding the what, when, where, how, and why of trading stocks.
- What stock do you want to trade? Just reading or hearing about a stock in the news or using a guru stock recommendation is the best way to LOSE money trading stocks online and that includes social media stocks and broker recommended stocks in particular. You need to realize that brokers, recommendation services, and news all make a LOT OF MONEY from YOU when you listen to their advice and buy stocks they have in inventory they intend to SELL TO YOU.
- When should you buy this stock? That is a huge question you should ask yourself. It is NOT about timing the market but about seeing the best entry price with the lowest risk and then controlling how you buy the stock, what you actually pay for the stock, and the risk you are taking.
- Where should you go for accurate and reliable information about a stock before you buy it. One place you must learn to use is the stock chart because the technical patterns tell you what is going on with the stock right NOW. Fundamentals are often 3 months old and are therefore not telling you what is happening at this moment with the company for this stock. Remember, WHO gets what information WHEN is not the same for every market participant group. Buy Side Institutions receive information about the company way ahead of YOU and retail news. So they buy in earlier. The only way to SEE their activity is to study the stock chart.
- How you buy and sell a stock makes all the difference in the world with your profits you can take to the bank. If you just place an “at Market” order you will pay too much for the stock as you are giving your broker permission to fill your order at any price within the National Best Bid Offer spread. If you use a limit order you will be buying into weakness. Much of the time limit orders will have you enter as a stock is going down. Stocks can run down very fast. There are better entry orders that control price and what you will pay for that stock.
- Why are you trading this stock is another big question you need to be able to answer before you every buy it. “My co-worker told me this was a good stock to buy” is one of the most common mistakes beginners make and why so many beginners lose a lot of money when they start out. There should be only one reason why you ever buy any stock: The stock analysis you do tells you the stock is about to move, has low risk of moving against you, and has very high profit potential.
Trading Stocks Online is a way that anyone can participate in the stock market. It is a means by which many average investors can earn extra income, and allows you to trade with ease and less work. However, if you start trading online without sufficient knowledge and education you will lose money, and at some point it may be a huge amount.
Think of it this way, teens get all excited when they learn something new they have never heard before. They rush to tell you, their parents all about it and assume they know more than you do, right? But in reality you, the parent, already know this information and much much more. This is a phenomenon of adult learning. It is far to easy to believe you have learned a huge amount at a training video when in fact, you won’t remember most of it AND you don’t know what you have not learned that will make a huge difference between making and keeping profits, and losing your capital do to trading details you have not learned yet.
Start Trading Online with a good education. That way you will have success from the get-go.