| I have encountered many novice stock investors | | | | of your savings for the stock market because |
| who jump into the deep end of the pool without | | | | the money you have is growing anyway. |
| the slightest consideration of their stock | | | | For any individual trade no more than 10% of |
| investment strategy. While courage and the | | | | your trading money should be put into a single |
| commitment to take action are essentials when it | | | | investment. Even the best stock traders in the |
| comes to making money, having a game plan | | | | world lose money when they trade stocks. By |
| before you get started is equally critical. | | | | limiting the amount of money put into any |
| Here are some things to consider before | | | | individual trade, they are able to protect their total |
| venturing out to make money in the stock | | | | pool of cash. This means that a stock that tanks |
| market. | | | | won't wipe them out because it never involves |
| Who's gonna handle your trades? | | | | more than 10% of their total holdings. By coupling |
| This may seem like a simple thing, but I've known | | | | this approach with other strategies like stop limit |
| many people back themselves into a financial | | | | orders, successful investors always make sure |
| corner because they chose poorly when it came | | | | that their money is growing on the whole. |
| to selecting a stockbroker. There are many | | | | How much time do you have to trade? |
| options available for Internet trading today. All of | | | | Some stock traders spend 40 hours a week |
| them make it very easy to create an account, fill | | | | trading stock, studying companies, watching out |
| it with money, and start trading immediately. | | | | for news, monitoring trends and keeping on top |
| These different firms also make it equally easy to | | | | of their game. Other stock traders may barely |
| empty your account of money very, very | | | | spend 40 hours a month. Make a realistic |
| quickly. | | | | assessment of how much time you have to |
| Do a quick analysis of how much you expect to | | | | trade stocks and then seek out a stock |
| spend for each individual transaction. Compare | | | | investment strategy that matches your particular |
| that as a percentage to any fees charged by | | | | constraints. If you're on the road a lot you may |
| that broker. It's very important to know what | | | | want to find automated tools that keep you up |
| you really need to do in order to make money. If | | | | to date and help you to quickly execute trades |
| the broker appears to be the cheapest, take a | | | | without the need for more of an Internet |
| look at where else they're making money. These | | | | connection. You would want trades that can be |
| firms have to stay in business. They have their | | | | handled by your own phone. If you're able to be |
| own expenses. There's nothing wrong with them | | | | at home you may want to invest in a second |
| making money. But it is your responsibility to | | | | monitor for your computer so your real time |
| know how they're going to do it. | | | | stock views are never obscured by some other |
| How much money do you have to invest? | | | | window on your desktop. |
| When it comes to trading stocks, I've received | | | | It's not about who is right and who is wrong |
| some great tips from financial planners. First you | | | | when it comes to different styles of investing as |
| should invest no more than 10% of your total | | | | well as different time constraints. Simply do a little |
| savings in stock trading. This is especially true if | | | | homework before you get started because in the |
| you're just getting started. Take that money and | | | | end making money with stocks is about your |
| learn how to leverage it into more money. If | | | | money working for you and not the other way |
| you're successful, you shouldn't even need more | | | | around. |