A nobody has a very good explanation. It is very clear and detailed summary. I just wanted to add to it. If you don't have the time to read a lot of books and just get to buying stocks right away, you can always open a simulated account and paper trade. In other word, go through the motion of buying stocks without risking any personal money. I personally believe it is the best way to learn. But in my opinion day trading is much harder to make money and you might get discourage if you don't make money in the beginning. But ironically, if you do make money in the beginning, it will give you the false impression that it is easy. And when you put your money on the line, you painfully discover that it is hard when you lose real money.
Personally, I think you might want to invest long term. Just open an account with $500 or $1000 and buy a well known stock, especially one that issue dividend. For example, McDonald fast food is a pretty good start, http://american-ticker.com/finance/ratio... The company's dividend yield is 3.4%/year. Obviously, buying shares have risk that the stock price might go down versus putting the money in a bank savings account. But if you hold it for 2 or 3 years, you'll see that the dividend accumulate nicely and perhaps you'll also see that the stock price appreciate, too.
There's a lot of different ways people make money in the stock market, but some methods require more knowledge of the market than others. A buy and hold is the simplest and in my opinion the safest way to learn with real money. The reason is that established companies might missed a few quarters, but in the long run, they will catchup and make money. If they don't make money, they won't be in business very long. So invest in well known companies that are simple for anyone to understand how they make money.
Here are a few more names for you to research: Target (TGT), Las Vegas Sands (LVS), United Parcel Service (UPS), and Walmart (WMT)
To start trading stocks, you will need to open an account with a brokerage house such as Scottrade or TD Ameritrade. They are required to have you fill out some forms. You must put money into your account before you can begin to order trades.
You select the stock you wish to own and place your order with the brokerage either by phone or online electronically. During the business day, the brokerage makes the trade for you, usually within seconds.
The shares that you buy are kept on file at the brokerage. Many companies no longer issue certificates for shares but keep track electronically.
When and if your company issues a dividend, it goes directly to your account.
You can get more information at their websites.
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If you buy stock hoping that you can sell it for a quick profit because of the daily (or monthly) swings in price, then you are not investing. You are hoping that for some unknown reason, the trading price will go up instead of down, and that you can outguess the public and sell at the best price. That is gambling.
Instead of gambling, choose a company that has steady earnings each year instead of losses. Buy these sturdy stocks and hold on to them. When you hold these stocks over a period of time, the prices will go up for a real reason; the companies are earning money every year and becoming more valuable.
If your company has very little long term debt, it will likely not get into financial trouble.
Don't pay more for the shares of stock than they are worth. If you pay 25 times earnings for a stock, you are only getting a 4% return. If earnings are steady, you will need 25 years to earn your money back on this stock. That's horrible.
If you save a portion of your income each payday and invest in solid stocks, over the course of several years you can grow very wealthy indeed. It is like hiring someone to get a job and earn money for you, and then using that money to hire more workers. Your money grows exponentially.
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Not sure if you mean investing in the market or really trading in the market. Realistically, not all investments make money and not all trades are profitable, and no professional investors and/or traders are always profitable
To be a trader you must first learn how to invest. You must know the products and the markets in which they trade, how security transactions are cleared and more importantly you must know the rules that govern those products and markets. So you must know what you’re doing, why you’re doing it, and how to do it. You should start by reading “Investing for Dummies” by Eric Tyson.
Before you spend $0.01 on any investment, you must know what you’re doing, why you’re doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself.
Begin your education by learning why you should invest and the importance of being able to make your own decisions or how the pro’s make theirs. Start your education by reading “Investing for Dummies” by Eric Tyson.
To continue your education select some of the following
Beating the Street by Peter Lynch
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Intelligent Investor, by Benjamin Graham
One Up on Wall Street by Peter Lynch
Stocks for the Long Run, by Jeremy Siegel
Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
What Works on Wall Street by James O'Shaunessey
Websites that can provide instructions and help with procedures and terminology are Investopedia - http://www.investopedia.com/ http://www.investorshub.com/ and 1 Source for Stocks - http://www.1source4stocks.com/info/stock... or Smart Money
http://www.smartmoney.com/
Visit some of the more professional websites like Zacks Research - http://www.zacks.com/ Schaeffer’s http://www.schaeffersresearch.com/ Investors Business Daily - http://www.investors.com/default.htm?fro...
Some of these web sites will have advertisers who are worth looking into also. And remember, if they offer free information, get it.
And when you think you want to invest/trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/
After you feel comfortable with what you're tryng to do, visit the Web sites of some of the more popular brokerage firms. So if you feel comfortable with what you see on line and look at the cost and/or charges. When you are ready to go, just open an account on line with the firm. Please remember, the cheapest is not always the best. Even though you’re opening an account on line. you can always call the firm's "customer service" area for help
Good luck on your journey, study hard and you’ll invest well.
sorry but I don't know how to trade stocks but before u trade stocks you should research the company you want to invest in.
Good luck!
I need stock trading details. Because i have producers in new product ,this product how to introduce in stock market.Any body know the details send to my mail laurawil6@yahoo.com.
I'm no't experienced in this field and I don't know how to start and earn money.so please help!
