Stock Trading 101 - All You Need to Know to Get Started in the Stock Market
In this video I'm going to cover the basic thing you need to know to get started trading in the stock market. So what do you need to get started? First of all, you're going to need risk capital. And what I mean by risk capital is money that you have that even if you loose 100% of it, it will not negatively affect your lifestyle.
This is essential not only to safeguard your life, but also because trading with money that isn't risk capital can wreak havoc on your psychology as a trader. So it's essential that you make sure your trading with risk capital or not at all. Second, you will of course need a computer and an internet connection. You'll need an understanding of the stock market and trading basics. And also, you're going to need an online broker, a trading software platform, and if you choose to use them, trading tools and access to market information. And finally, a personal plan and strategy, and a dedication to learning. For the basics, the first thing to focus on is learning the different order types - for example, a market versus a limit order and also the settings for these orders, such as good-till-close or good-till-cancel.
The bid and ask system is also important to understand. A good resource to learn all this is online at Investopedia.com. Next in basics is the simulated account. A simulated account allows you to place orders in an environment that mimics live trading action. This is very similar to the concept of paper trading, but the simulated environment adds to the realism so it's a great idea to start out trading this way. I'll add a caveat to this though - there are some differences between a simulated account and a live account, so please do make sure you know what these are before you trade live.
But generally, a simulated account is a great way to get the feel of trading and practice placing orders without the risk of losing money. A piece of advice I can give in regards to simulated accounts is to treat them as if they are real money accounts. This gives you the closest approximation to how it will be when it's actually your money at stake, and it will give you the best preparation for your live trading. The next basic to cover is information. It's important to learn what kinds of news and information you need to know before you place a trade in a given stock. For example, things like FED announcements, earnings reports, and other pieces of news can move the stock price quickly and substantially - and you want to know before this happens, so you don't jump in and then get surprised by a jump in the market that could have been - you could have been prepared for had you had access to the right information.
Last in basics is connection. And although this is optional, I personally enjoy connecting with other traders online because there can be great opportunities to learn from each other and to share in the experience of trading as a whole. There are a lot of different online communities for traders, one of them is StockTwits and I really enjoy this one so I highly recommend you do check them out. If you want to find me on StockTwits, my username is @TraderJesseJ and that's the same username that I am on Twitter as well. So the next section that I'm going to take you through is brokers. So first of all, what exactly does the broker do? They are the entity that allows you to buy and sell securities. So you open an account with them, and that will allow you to trade. There are a huge selection of brokers to choose from though, so that takes us to the next part which is choosing your broker.
So one of the first things to consider in choosing your broker is what level of service you want. Different brokers will offer different levels of service, for example some have hands-on services where some are a lot more basic and require that you're more self sufficient in managing your own account. So the choice really depends on your own needs, so you'll want to consider what level of service suits you best when you're choosing a broker. The second thing to consider are the costs. You'll want to find out what kind of commission structure the broker offers, and then decide if the cost of these commissions are balanced with what this broker can provide you. And lastly, you do want to factor this cost into your trading plan. Another important thing to consider with a broker is compatibility. So it's really important that the broker you choose is able to tie in to your specific trading software platform.
So your trading software platform is the front end software that you're going to use that allows you to see charts and most likely place trades right on those charts. Some brokers provide a software platform as part of their offer. If this is the case, you'll want to determine if you like the platform they offer. And if not, you'll want to make sure they can tie in with a platform that you do like. That takes us to the trading software section and as I just mentioned if your broker provides this, you just want to decide if you like the one they offer.
If not, there are many platforms that are "broker neutral" that you can choose from. One really important thing though to make sure is that if you use trading tools like indicators you want to make sure that the trading software that you choose is compatible with your trading tools because not all will be. So this brings us to the final section on trading tools. Technical traders often end up using tools to help in their analysis. There are many different tools available that use different market inputs to give a variety of deeper insights to trading charts and decisions. Having a good tool set can help you create your own market edge and it can really give you a more systematic way to trade so although having and using trading tools in your trading is optional, I would highly recommend that you at least look into it and consider the use of trading tools. So in summary, make sure you have risk capital. Choose your broker considering your own needs. Choose a trading software provider that has an interface you like.
If you use tools for technical analysis make sure you choose them well as they are your equipment in the market. Finally, remember that you are the most important part in this whole equation, as a trader, and it's important that you develop your own system and commit to ongoing learning in the markets. So I hope you've enjoyed this video presentation, please stay tuned for a brief risk disclaimer video and the links to follow me on YouTube and to visit my website - it's www.StockMarketProfile.com.
Thank-you. This presentation is intended for educational purposes only. The concepts depicted are solely the opinion of the presenter and are not individualized advice for viewers. The risk of loss in trading commodity futures, options, securities and Forex markets can be substantial; therefore, prior to trading, investors should understand these risks and must assume responsibility for these risks and their results. Past performance is not indicative of future performance. .
Stock trading 101, trading, stock market, risk capital, trading basics, online broker, trading software platform, trading indicators, market information, trading plan, strategy, market order, limit order, bid, ask, simulated account, FED announcements, earning reports, StockTwits, brokers, commission structure, technical traders, analysis, stocktrading22
In this video I'm going to cover the basic thing you need to know to get started trading in the stock market. So what do you need to get started? First of all, you're going to need risk capital. And what I mean by risk capital is money that you have that even if you loose 100% of it, it will not negatively affect your lifestyle.This is essential not only to safeguard your life, but also because trading with money that isn't risk capital can wreak havoc on your psychology as a trader. So it's essential that you make sure your trading with risk capital or not at all. Second, you will of course need a computer and an internet connection. You'll need an understanding of the stock market and trading basics. And also, you're going to need an online broker, a trading software platform, and if you choose to use them, trading tools and access to market information. And finally, a personal plan and strategy, and a dedication to learning. For the basics, the first thing to focus on is learning the different order types - for example, a market versus a limit order and also the settings for these orders, such as good-till-close or good-till-cancel.
The bid and ask system is also important to understand. A good resource to learn all this is online at Investopedia.com. Next in basics is the simulated account. A simulated account allows you to place orders in an environment that mimics live trading action. This is very similar to the concept of paper trading, but the simulated environment adds to the realism so it's a great idea to start out trading this way. I'll add a caveat to this though - there are some differences between a simulated account and a live account, so please do make sure you know what these are before you trade live.
But generally, a simulated account is a great way to get the feel of trading and practice placing orders without the risk of losing money. A piece of advice I can give in regards to simulated accounts is to treat them as if they are real money accounts. This gives you the closest approximation to how it will be when it's actually your money at stake, and it will give you the best preparation for your live trading. The next basic to cover is information. It's important to learn what kinds of news and information you need to know before you place a trade in a given stock. For example, things like FED announcements, earnings reports, and other pieces of news can move the stock price quickly and substantially - and you want to know before this happens, so you don't jump in and then get surprised by a jump in the market that could have been - you could have been prepared for had you had access to the right information.
Last in basics is connection. And although this is optional, I personally enjoy connecting with other traders online because there can be great opportunities to learn from each other and to share in the experience of trading as a whole. There are a lot of different online communities for traders, one of them is StockTwits and I really enjoy this one so I highly recommend you do check them out. If you want to find me on StockTwits, my username is @TraderJesseJ and that's the same username that I am on Twitter as well. So the next section that I'm going to take you through is brokers. So first of all, what exactly does the broker do? They are the entity that allows you to buy and sell securities. So you open an account with them, and that will allow you to trade. There are a huge selection of brokers to choose from though, so that takes us to the next part which is choosing your broker.
So one of the first things to consider in choosing your broker is what level of service you want. Different brokers will offer different levels of service, for example some have hands-on services where some are a lot more basic and require that you're more self sufficient in managing your own account. So the choice really depends on your own needs, so you'll want to consider what level of service suits you best when you're choosing a broker. The second thing to consider are the costs. You'll want to find out what kind of commission structure the broker offers, and then decide if the cost of these commissions are balanced with what this broker can provide you. And lastly, you do want to factor this cost into your trading plan. Another important thing to consider with a broker is compatibility. So it's really important that the broker you choose is able to tie in to your specific trading software platform.
So your trading software platform is the front end software that you're going to use that allows you to see charts and most likely place trades right on those charts. Some brokers provide a software platform as part of their offer. If this is the case, you'll want to determine if you like the platform they offer. And if not, you'll want to make sure they can tie in with a platform that you do like. That takes us to the trading software section and as I just mentioned if your broker provides this, you just want to decide if you like the one they offer.
If not, there are many platforms that are "broker neutral" that you can choose from. One really important thing though to make sure is that if you use trading tools like indicators you want to make sure that the trading software that you choose is compatible with your trading tools because not all will be. So this brings us to the final section on trading tools. Technical traders often end up using tools to help in their analysis. There are many different tools available that use different market inputs to give a variety of deeper insights to trading charts and decisions. Having a good tool set can help you create your own market edge and it can really give you a more systematic way to trade so although having and using trading tools in your trading is optional, I would highly recommend that you at least look into it and consider the use of trading tools. So in summary, make sure you have risk capital. Choose your broker considering your own needs. Choose a trading software provider that has an interface you like.
If you use tools for technical analysis make sure you choose them well as they are your equipment in the market. Finally, remember that you are the most important part in this whole equation, as a trader, and it's important that you develop your own system and commit to ongoing learning in the markets. So I hope you've enjoyed this video presentation, please stay tuned for a brief risk disclaimer video and the links to follow me on YouTube and to visit my website - it's www.StockMarketProfile.com.
Thank-you. This presentation is intended for educational purposes only. The concepts depicted are solely the opinion of the presenter and are not individualized advice for viewers. The risk of loss in trading commodity futures, options, securities and Forex markets can be substantial; therefore, prior to trading, investors should understand these risks and must assume responsibility for these risks and their results. Past performance is not indicative of future performance. .
Stock trading 101, trading, stock market, risk capital, trading basics, online broker, trading software platform, trading indicators, market information, trading plan, strategy, market order, limit order, bid, ask, simulated account, FED announcements, earning reports, StockTwits, brokers, commission structure, technical traders, analysis, stocktrading22
Thanks for the guide!
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