I suggest you also visit Bulkowski's pattern website, and learn about stock patterns.
Your father is correct in telling you to learn before you trade. That's the best way to prevent loss. Expect to spend anywhere from months to years analyzing the stock market and trying to make inferences. It's not a quick journey.
As for your last question, you just buy company stock at a low price, and sell it at a high price. However, it's not as simple as you hear me say it. You have to factor in many other things, such as a company's reputation, and how well they are doing.
Good luck, and don't rush :)
To be a day trader you must first know how to trade and in order to trade you must know how to invest. To day trade you need several years experience as a trader. 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.
There's no guarantee that if you trade, you will make money, if this were true every one on Wall Street would be making money and this has not and will never happen
Here’s a list of books you should consider, at least read half of them
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas
Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.
Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader it takes work and constant study of the markets and the products traded in those markets, there is no easy way.
I started investing in the market at the age of 11, but before my father opened the custodian account I had spent a along time studying the market and the stocks in the market.
When I was 15, after more studying my father permitted me to trade. Yes, I made good money my profits paid my high school and college expenses but it was very hard work.
So you must be prepared to work if you want to be a trader.
"Online trading to make money" is a sure way to loose money and quickly go broke. Computers, able to analyze data and make trades in hundredths of a second, for years now beat out even the best of the old day traders. If you are really interested in this go to college and get an MBA degree. There is so much to learn that it is scary.
As you see I'm still under 18 but i did talk to my dad about trying online trading and he said sure but foist i must find out all the important things about being successful in the trading business. So can you please tell me some information about online trading or trading in general as i would like to start earning money? also how does investment work and how does buying companies work in order to make profits?
Thank you!!
