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| 5 Steps to becoming a stock market and foreign exchange day trader-00-5638 |
By:
alexsavesamillion |
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1. Firstly, don’t think this is going to be easy. You need to learn about Stock Market and Forex trading before you even attempt dipping your toe. Read up on the subject with a book like Rodney Hobson’s “Shares Made Simple: A Beginner’s Guide to the Stock Market” or Jared Martinez’s “The 10 Essentials of Forex Trading”.
To begin your lesson, here are a few key Stock Market terms:
Bid – This is the highest price that a buyer is willing to pay for a stock.
Broker – A person that buys or sells stocks, bonds, commodities and such in exchange for a fee which is called a commission.
Bull – An investor who believes the whole market or one individual stock is going to increase in price. This is the opposite of a Bear.
Bear – This refers to an investor who believes the stock market or a particular stock is declining. This is the opposite of a Bull.
Dow Jones Industrial Average – This is a compilation of the 30 most traded blue chip stocks. This list is the most widely used for analyzing stock market indexes.
NASDAQ – This is a stock exchange consisting primarily of technology companies.
Stock – This is the smallest measurable unit of ownership in a company. Shares fall into either the common or preferred categories; companies issue shares of stock in order to raise capital without borrowing money.
2. Produce your own system by studying the market or use one of the many great ‘Training for Traders’ websites that can predict trends and teach you how to start making money.
If you can, why not learn from the best and use a website like Spyglass Trading Solutions (http://www.spyglasstrading.co.uk/). Their expertise is second to none and they offer a proven solution of software and training to become a stock market or forex trader.
Their Head Trader, Mike Baghdady, is the perfect person to teach you the ropes. A stock market guru, Mike is the world’s foremost expert on Price Behaviour and a 33-year veteran of the global financial markets.
3. Practice using your system with a paper trading account where you can trade as a would-be investor without committing real money. This will give you invaluable practice without the risk.
4. Start trading! Begin with small amounts and gradually increase as you become more confident. Remember, this is a marathon, not a sprint. Consider starting with a rules based trading system that shows you the ropes and takes emotion out of the equation. Remember, there’s a good time to sell as well as to buy; and many novice traders stay with a stock too long in the hope that their fantastic run will continue.
5. Finally, don’t get carried away! Whatever you do, don’t let emotions cloud your judgment. But most importantly of all, enjoy your newfound income you are now a stock market trader!
One final important point:
If I was starting day trading again, I’d learn the tricks of the trade from a company that offers forex and stock market trading training, as well its own software to help you make the trades. Companies like Spyglass Trading can also help you learn how to play the markets by allowing you to follow their trades, shadow their traders and provide ongoing mentoring from industry veterans.
The insights you learn from experienced stock and FX training companies like [anchors]
will give you a competitive edge in the market from day one.
About the Author:
Spyglass
Spyglass Trading Solutions
Spyglass Trading |
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