Trading On The Stock Market For Rookies

Trading On The Stock Market For Rookies

Here's a guide for those looking to get into trading.

Have you wanted to get into the stock market, but don't know where to begin? Are you an amateur trader like me that has very little capital to invest? If you said yes to either of these questions, congrats we are in the same boat of untapped potential! I will try to share my mistakes, tricks, and tips as I am a year or two into equity trading. This article will focus only on trading shares of a company; not options, futures, bonds, mutual funds, etc. Those investment strategies are much more complex and beginner traders should not worry about these just yet. The reason why people invest their money in the stock market is because your money is doing absolutely nothing in the bank. It is merely just sitting there and making maybe five cents per year. Also, the bank takes it upon themselves to invest your money anyway and reap the benefits of the returns they make on your money. So logically, why not just invest the money yourself and reap the benefits. That being said, there is plenty of risk involved with investing, and I would recommend still keeping a good amount of money saved up.

First of all, it is important to understand what the stock market actually is. The stock market is simply a place where people buy and sell equity (or shares) of a particular company. Based upon many different factors, the price of this equity can increase or decrease. You can buy and sell stock with a brokerage firm. These companies include TDAmeritrade, Scottrade, E-Trade, Fidelity Investments, and many more. They all have websites, which you can sign up for and deposit money into. These companies will charge a 6-10 dollar commission fee every time you initiate a transaction. However, the Robinhood app is a wonderful platform for those looking to get their feet in the water because they do not charge a commission fee and they only allow you to trade stock. The primary goal of trading is to sell your shares of a particular company at a higher price than you buy them for. Some companies also pay out dividends, but the return from dividends is miniscule compared to actually buying and selling. Below are some answers and tips that I believe may be helpful for amateur traders.

1. Know What You're Getting Into

Do not make the mistake I made and just jump into the stock market for the sake of doing so. Wait for the right time to get in. You need to make sure the money you are investing is not vital to your survival. This means that the capital you are investing should mostly be discretionary (aka it is not the end of the world if you lose it). Have a plan. What price do you want to buy it at? What price to want to sell it at? Put a time period on your investment. Don't just wing it

2. Do Your Homework

You are not going to be successful by picking an arbitrary company and investing in them. Do your research. Look at the companies 10-K's and make sure they are in good standing. Look at their charts for particular patterns. You need to read and understand what the company does and how it is managed. Look up the company's EPS, volume, P/E, Market Cap, 52-Week Range, and many other indicators. If you don't know what these mean, that is okay. Look up what they mean and connect the dots. Do these numbers as well as the company's internal status reflect well on the company? Just like anything in life, it is vital that you put in the work to get the results that you want.

3. Watch/Read/Listen To The News

News about a company, whether good or bad, can have huge implications on the price per share of a company. I am not saying you have to read the Wall Street Journal daily, just don't be oblivious.

4. Trade Value

As Warren Buffet puts in "Price is what you pay; value is what you get. Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." Everybody loves a great deal. So, if you think a company is strong and you see it's price going down, maybe it is a good time to buy. As logical as it seems, people tend to fret when they see companies in the red. Sometimes rightfully so, but at other times it can be seen as opportunity.

5. Be Decisive and Don't Be Greedy

Cut your losses at around 10% and take your earnings at around 20%. Don't be greedy and try to hold onto to your investment in order to make even more money than you already made. On the flip side, admit defeat and sell your shares when your company is losing a good deal of money. Don't let your emotions get in the way and don't get attached to a particular company.

Also, remember what is most important to you such as family, friends, health, and happiness.

Happy trading!

Stay warm.

Popular Right Now

General Overview of Cisco Certifications

Cisco is the worldwide leader in IT and networking.

The most popular and useful certification programs in the field of IT business are provided by the Cisco. The credentials are for beginners to advance level. Read on to get some answers concerning Cisco certifications and its accessible assignments.

Cisco certifications have been demonstrated to help organize experts to get a higher position, an increment in their salaries, remain employed and it also helps to approve their insight on directing, exchanging, outlining and securing everything Cisco

However, Cisco additionally offers networking, storage, applications for binding together interchanges, inbound-communications and coordinated effort (WebEx), and a variety of administrations from the simplest product to the final solutions for the server farms and cloud administration.

To get the confirmation that IT experts have the basic skills to support the Cisco products and are able to solve all the technology related problems of the customers. 

The Cisco Certifications Programs from the entry level to an advanced level that covers all the important aspects. The step by step learning helps them to gain the knowledge about all the major and minor aspects.

Each level requires different credentials depending on the level you are attending. For the entry level, you acquire fewer credentials and prerequisites. But for the highest level, you have to prove the right prerequisites and need to meet all of its requirements.

General Overview of Cisco Certifications:

Cisco includes the following credentials:

• Cisco Certified Entry Networking Technician (CCENT)

• Cisco Certified Technician (CCT)

• Cisco Certified Design Associate (CCDA)

• Cisco Certified Network Associate (CCNA) 

• Cisco Certified Network Professional (CCNP)

• Cisco Certified Design Professional (CCDP)

• Cisco Certified Internetwork Expert (CCIE)

• Cisco Certified Design Expert (CCDE)

• Cisco Certified Architect (CCAr)

Different programs and paths are provided by the Cisco, the two main branches are network design and network operation.

Cisco organizing certifications stepping stone starts with the entry-level CCENT accreditation, jumps to the CCNA, at that point to the CCNP, and comes looping with the CCIE.In case you're more outline situated, you could consider the start-up with the CCENT, moving to the CCDA, at that point the Expert-level CCDP, trailed by the CCDE, and complete the program by acquiring the CCAr.

Different specialized programs are also provided by the Cisco. The list includes the following:

• Rich Media

• Security

• Operating System Software

• Internet Of Things

Cisco’s Entry level Program:

Cisco beginning level introduces the two levels, CCENT (Cisco Certified Entry Networking Technician) and CCT (Cisco Certified Technician). There is no need to obtain the prerequisites. Candidates must have to pass the simple test for each of the credential.

A professional should have to keep the information and aptitude to make the installments, work and investigate a little to branch the networking arrangements, including essential system security. 

The  CCENT guaranteed proficient installments, keeps up and investigates little systems or a branch of an endeavor system, and executes fundamental system security. The CCENT qualification is an essential for relate-level accreditations, for example, the CCNA and CCDA. 

The CCT works nearby in client areas, diagnosing issues and repairing or supplanting system related hardware. A CCT can pick one of a few claim to fame tracks, which may incorporate Data Center, Telepresence, Routing, Switching and associating the important data.

Cisco’s Associate Level Program:

Associate levels, mostly synonymous with understudy or establishment levels, start with the Cisco Career Programming Certifications. They contain the CCDA and CCNA accreditation ways. 

CCNA 

The CCNA perceives essential abilities in introducing, supporting and investigating wired or potentially remote systems. It is an essential for the expert level CCNP affirmation. Essentials for the CCNA depending upon the arrangement track picked as to pass the required exams. All arrangement tracks require possibly maybe a couple exams. 

CCDA 

Cisco Certified Design Associate (CCDA) experts can configuration directed and exchanged system foundations, including WANs, LANs and dial get to administrations for organizations and associations.

The CCDA does not have a copious supplement of the books for considering, yet in its training camps located at the Training Campaigns, there were examined every one of the choices and at last settledon the CCDA Exam Programming Guide as the best asset.

Cisco’s Professional Level Program:

Cisco's professional level qualifications incorporate two primary projects: Cisco Certified Design Professional (CCDP) and Cisco Certified Network Professional (CCNP). To get the CCDP, one must pass three accreditation exams and have both the CCDA and CCNA Routing and Switching qualifications or any Cisco CCIE confirmation. 

The CCNP qualification perceives experts who design, send and investigate nearby systems and wide territory systems. The CCNP tracks are the same as those for the CCNA, except for Industrial and Cyber Ops, which are not provided by the CCNP. 

Cisco’s Expert Level Program:

Cisco's Expert-level accreditations additionally incorporate two principle confirmations: the desired Cisco Certified Internet work Expert (CCIE) and the Cisco Certified Design Expert (CCDE). There are no requirements for either confirmation, however, you should pass a composed exam and a thorough practical exam for each of these accreditations. 

The CCDE distinguishes specialists who plan framework answers for vast enterprise surroundings, which incorporate innovative, operational, business and spending part of a project. 

The CCIE has expert specialized abilities and learning about Cisco networking and arrangements in one of the CCIE specialized tracks, which right now incorporate Collaboration, Service Provider, Wireless, Data Center, Security, Routing, and Switching. Passing the CCIE exam is not just possible without the help of sites for example PrepAway Cisco section provides Exam Questions and dumps along with video training courses from top notch trainers who have over 15 years of industry experience to help students pass their exams!

Cisco’s Fields With Vast Career Goals

Cisco certifications are uniquely designed under all the level and provide assistance in different area selection. For the skilled Cisco’s professional job opportunities are plentiful. But it varies from their experience and network operations and simulated networking design. 

Some of the most common job opportunities are:

  • CCENT that helps in technician roles
  • CCT that is useful in system administration
  • CCDA support in analyzing system and design development 
  • CCIE that includes the expert level architect

Related Content

Connect with a generation
of new voices.

We are students, thinkers, influencers, and communities sharing our ideas with the world. Join our platform to create and discover content that actually matters to you.

Learn more Start Creating

Dear Kev

You don't need this anymore.
EM
EM

You don't need this anymore kev. You really gotta stop this and grow up. I hate seeing you like this. I know you're not happy, you haven't been in all the time we've spent getting high together. But I know this, when we hang out sober I've never seen you happier. And I know you know that. You're not stupid kev, you know that you need to get sober. I just wish one day you would actually give it a real chance. I hate seeing this shit happen to you over and over again. But I also know that it's your choices that are leading you down this path and you're the only one that can change it. I wish you would kev. You don't realize how close I feel to you still and always will, and all I want for you is to get over this and to have a truly happy life. You deserve it so much even if you don't believe me.

EM
EM

Related Content

Facebook Comments