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Basic Rules of Stock Market

Basic Rules of Stock Market Your general theme shouldn’t change. If you start bending or breaking your regular theme and can’t justify trades, then you are switching from investments to gambles. Risk is perspective. It’s also relative to your understanding of the industry you’re investing in. The less you understand about a business, the more dangerous it becomes. You don’t need to know the entire market to make money. You only need to know a very tiny portion of it  very well. If you mistake your luck for investing wisdom, you’re going to lose your money as fast as you made it. If your emotions begin taking over, you’ve lost. Patience almost always wins out. Over 95% of institutional funds do not beat index trackers. Intraday/daytrading doesn’t work. If you look at the successful companies of today (Netflix, Apple, Intel, AMD, Nvidia, etc) you’ll see that they took  a good deal of time.  Anybody with a name on Wall Street does not day trade. All the advertisements you se...
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Basic Rules of Stock Market

  Basic Rules of Stock Market Own capital Be strict with your stop loss Learn whenever you suffer a loss Avoid greed Avoid leveraging Don't act if you are not sure which way the stock markets will move Remain patient and disciplined, whatever the market condition Own capital:  Never take a loan or borrow money from a friend to trade in the stock market. Many times I have seen that people borrowed money or took loans from someone on high-interest rates and then lost capital. Be strict with your stop loss:  It means when you are losing money, cut your losses and get out of the market. Similarly, if you are on a winning spree, setting a proper stop loss will protect your profits when the stock markets start going down. Learn whenever you suffer a loss:  We lose money in the market due to our mistakes. Find out where you went wrong and ensure you don't repeat it. Be disciplined Once you have developed an investment strategy and identified companies worth investing in, st...
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Day Trading Rules for New Stock Traders

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  Day Trading Rules for New Stock Traders By  Brian M. Reiser May 12, 2021 at 11:34PM Are you new to the day trading game but can’t wait to get started? I don’t blame you. Day trading can be an exciting and profitable venture. However, it’s best for the rookie trader to keep some important day trading rules in mind so that you can make the most of your opportunities without losing your shirt! As a refresher, day trading is different from investing. When you invest in a stock like  Amazon.com  (Nasdaq: AMZN) , you are riding the stock for the long term. You may be holding the stock for years, or even decades. Not so with day trading: A day trader buys and sells a stock within the same day ( intraday trading ). The whole point of day trading is to get in, make a quick profit and get out. Over time, these profits will compound and can help you make a lot of money. Of course, don’t forget that you could also lose a lot of money if you aren’t careful. That’s why it’s good...
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Investing in Stocks

  Investing in Stocks Opening the Right Account Stock investing can be done through a wide variety of brokerage account types, including Cash Accounts, Margin Accounts, Short Accounts, Retirement Accounts, and Education Savings Accounts. To begin investing, the stock investment account will need to be funded with sufficient cash to cover the purchase. Continue reading to learn what you need to know before investing in stocks. When you're ready to start investing, complete the  Firstrade online application  to open your personal investment account! Placing a Stock Order When you place a stock order through Firstrade, you will be able to choose from the following order types: Limit Order: An order to buy a specified quantity of a security at or below a specified price or to sell it at or above a specified price (called the limit price). This ensures that a person will never pay more for the stock than whatever price is set as his/her limit. However, the order...
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