10 Trading Secrets for Beginners

Day Trading refers to market positions which are held only a short time; typically the trader opens and closes a position the same day. The concept got a bad reputation in the 1990’s when many beginners began to day trade, jumping onto the new online trading platforms without applying tested stock trading strategies. They thought they could “go to work” in their pajamas and make a fortune in stock trades with very little knowledge or effort. This proved not to be the case.

1. Look for scenarios where supply and demand are drastically imbalanced, and use these as your entry points.
2. Always set price targets before you jump in.
3. Insist on a risk-reward ratio of at least 3:1 when setting your targets.
4. Be patient.
5. Be disciplined.
6. Don’t be afraid to push the “order” button.
7. Only day trade with money you can afford to lose.
8. Never risk too much capital on one trade.
9. Don’t limit day trading to stocks.
10. Don’t second-guess yourself, but do learn from experience.

10 Great Ways to Learn Stock Trading as a New Investor

New investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education. Just like riding a bike, trial and error coupled with the ability to keep pressing forth will eventually lead to success.

One great advantage of stock trading lies in the fact that the game itself lasts a lifetime. Investors have years to develop and hone their skills. Strategies used twenty years ago are still utilized today. The game is always in full force.

1. Open a stock broker account
2. Read books
3. Read articles
4. Find a mentor
5. Study the greats
6. Read and follow the market
7. Consider paid subscriptions
8. Go to seminars, take classes
9. Buy your first stock or practice trading through a simulator
10. Passive Index and follow Warren Buffett