Reginald T. Hobbss asked:


I’m calling this article trading stock for dummies because I want to illustrate to you the stock trading does not have to be as difficult as you might think.

In fact, it can actually be quite simple but, of course, you must follow a few basic rules.

If you’ve never traded stock before or have traded unsuccessfully you have to realize that it’s time for you to learn stock trading. Whether you’re interested in online stock day trading training or you want to trade longer-term, there are tons of resources available online and offline to help you gain the knowledge you need.

Before we get into that let’s chat a little bit about what stock trading is. Trading and investing are terms that are often used interchangeably. Investing is longer-term in nature. Trading stock is typically shorter term in nature and seeks to take advantage of smaller market movements within the larger trends.

Trading stock, means that you are taking a more active role than if you are investing in stock. Let’s look at an example of a very simple stock trade.

Buy 100 Shares Of XYZ Company at Monday’s Open

Sell 100 Shares Of XYZ Company at Friday’s Close

Please keep in mind that this is just a simplified example and not a suggestion of a trade for any security. The above example is of a very simple trade that lasted for one week. Here’s an example of stock day trading using the same fictitious company is above.

Buy 100 Shares Of XYZ company at Monday’s open

Sell 100 Shares Of XYZ Company at Monday’s close

As you can see in both examples we open the trade with a buy order and close the trade with a sell order. In both cases we were “bullish” and chose to “go long” the stock. Our second example was a stock day trade because we opened and closed out our position all within the same trading day. Some stock day traders place a much greater frequency of trades during the day.

You can also see that in both examples we specified the quantity to be traded and also both examples we closed our trades using that exact same quantity. It’s always important to keep this in mind and make sure you are completely out of a trade when you want to be. What I mean by that is that when your trading method requires your position to be closed make sure that you close the trade using the same quantity of stock as you opened the trade with…That way you will not have any unwanted open positions that may potentially move against you.

Something else that’s important for you to keep in mind is that different types of stock trading will require different amounts of capital. For example, opening a standard stock brokerage account can require as little as $500-$1000 to get you started. If, however you find that you will frequently day trade than your minimum may go up if you’re classified as a pattern daytrader. A pattern daytrader places four or more day trades in a rolling five-trading-day period, stock brokerages will then require that you maintain a minimum balance of $25,000 in your account and this may vary upward depending upon the online stock broker that you are using.

So you can see trading stocks need not be mystical or difficult as long as you keep the “trading stock for dummies” attitude in mind and continue to learn while you earn while keeping things as simple and uncomplicated as possible.



Sherry

David Jose asked:


 

Stock Trading Community-Have you observed the recent growth of the effective and challenging stock trading communities ? Hope you have done so. These days various stock trading communities are making headlines in many online journals through out the world. This is a remarkable news made by the age old stock trading organizations. In the past, there were many hiccups in the minds of people regarding investments in the stock markets. Well, at present there is a transparent change in the thinking of these people. Now they are getting more advance in their trading skills and moving with the current pace of the stock trading markets.

What has made these stock trading communities to expand suddenly through out the world ? Do you have a proper reason for this in your mind ? You might be having at least a sound perception about it. The most appealing answer is that there is a massive increase in the number of people trusting such a stock trading community. Modern people are more open to accept new challenges and always stand up to get the view of the horizons of their success. They never step back without even trying their ideas into practical applications.

The advent of stock trading community should be always welcome. They are helping more people to get united and discuss the factors which are related to the stock markets. In addition, they also bring out the various opportunities where people on investing more money can have higher range of benefits. People are surely getting profits from such stock trading communities and that is why such communities are increasing day by day.

Now-a-days, it is a common characteristic that all small stock trading communities are linking up to the giant stock trading communities. Many business experts find this occurrence to be good. People having the memberships of small stock trading communities can indirectly participate in the various global projects and then they are sure to get huge benefits. If you are a member of a small stock trading community then with other members you would discuss the prospects of investing in the giant projects and after the final decision, all the members can move with the giant projects. Here majority of people take the right decision, so you are one of them and the success out of it is evident.

 



William