I learn to trade stock

[Elmira Nancy]

What is the best way to learn how to trade stocks?

The only thing i ever read about investing is that I read "rich dad poor dad" and "investing for dummies".

I don't know where to start. Any suggestions?

[clydewolf]

Elmira Nancy,

I would suggest reading Peter Lynch's book, Beating the Street.
You can check it out at most libraries, or buy your own copy at Amazon.com:
http://www.amazon.com/Beating-Street.../dp/0671891634

Then sign-up with an on-line broker.
Make your stock picks and place your buy order.
When you think it is appropriate, place your sell order.

Keep good records of your buys and sells. You will need this information at tax time.
When you reinvest dividends, it is very important to record these buys as to date, amount reinvested and the number of shares your reinvestment purchased.

[pochax]

there are also good books on gambling (obviously said tongue-n-cheek)

seriously, TRADING stocks is easy. MAKING MONEY CONSISTENTLY off trading stocks is an entirely different ball of wax. today's news is an example: most people would say Intel (INTC) is probably one of the most solid blue-chip stocks around and would constitute a good buy for a long-term strategy. Today they are getting sued by the FTC for antitrust issues. Will they survive? most likely, yes. they will probably settle and pay some million-to-billion to get this monkey off their back since they have deep pockets. but why risk it? i am not saying not to own Intel. I am saying not to put all your eggs in one or two baskets (ie. DIVERSIFY). mutual funds/index funds allow you to do that. If you have loads of cash (most of us do not) to invest, you can probably create your own "mutual fund" of stocks and i think that is an acceptable practice. but for most of us, we just don't have enough to work with to get a well-diversified portfolio together so the next best thing are funds. consider going that route until you REALLY understand stock trading - both it's upside potential and pitfalls.

[4jacks]

Given information given in other threads, I don't think you should be looking into stock trading.

[C9Consulting]

I used marketwatch and updown to play games trading stock. I also read a couple of books and I read financial websites daily (to keep me plugged in to trading trends). After about a year of this, I started to use my money with the trades that I would experiment with the "fake" accounts.

[pochax]

I used marketwatch and updown to play games trading stock. I also read a couple of books and I read financial websites daily (to keep me plugged in to trading trends). After about a year of this, I started to use my money with the trades that I would experiment with the "fake" accounts.

How has that panned out for you? And how do you determine your potential winners?

[Amatachick]

I've been able to learn a lot from www.updown.com. The Updown website allows you to sign up for an account where you get $1 million (fake obviously ) to play around in the stock market. It is actually tied to what the market does and you can play-purchase real stocks. They charge you broker fees so you can get the feel of that and also allow you to purchase ETFs and bond. It's helped me a lot!

[pochax]

I've been able to learn a lot from www.updown.com. The Updown website allows you to sign up for an account where you get $1 million (fake obviously ) to play around in the stock market. It is actually tied to what the market does and you can play-purchase real stocks. They charge you broker fees so you can get the feel of that and also allow you to purchase ETFs and bond. It's helped me a lot!

i did this "game" a few times in the past (different website, i believe it was MarketWatch just as the earlier poster mentioned). One thing i can tell you is that your trading behavior when the money is fake compared to when it is your hard-earned cash is VERY DIFFERENT. you will realize the risks you take when you have nothing to lose can't be translated as such.

i'm sure for most of us, it's no big deal...we clearly know we should not be gambling with our life savings in this manner. however, i throw the cautionary word out there for those who might actually think they can strike it big in the stock market but do not have any of the foundational principles of long-term investing in mind.

[cdrain]

Elmira Nancy,

I'm also starting out as a new trader in the stock market. My husband and I have always had our investments in mutual funds, but God has been encouraging me to learn more about the market, and work on being a better steward of our money. I'm starting out small (very small!), and am reading as much as I can with many different view points. A great starting point for me was Phil Town's Rule #1. He's quite a show-man, and I don't really like that, but his information seems sound, and is based largely on Warren Buffett's principles. I have become a huge fan of Buffetts, and intend to put some money in his BRK/b stock soon. Also, Lynch's book -- Beating the Street is on my list; looking forward to reading it soon!

[Gander]

Thanks for all your insights

[carodoo]

I'm learning about investing too and haven't done much real trading yet. A website that I found helpful is The Big Picture, a blog by Barry Ritholtz. Here's a link from his blog of a reading list for beginning investors http://www.ritholtz.com/blog/2010/01...fundamental-2/. If the link doesn't work, just search for his blog and click on book club at the top of the home page.

[redbonegirl97]

This is exactly what I have been looking for. I want to learn more about while playing it. Thanks so much.

Tiffany

[monkeyfresh]

These days I'm trying to invest money on apple shares, some of you have any advice for me? How can I do this?

[4jacks]

Monkeyfresh,
You can just open an account with Sharebuilder or any other online company that will let you purchase stock. Then you purchase apple stock AAPL.

Honestly though, I seriously don't recommend it. You already missed the little boost from the iPad, and investing in a single stock is pretty risky. There are others on this forum who are better equiped for investing adviced than me. But I would say be really sure about it before you do it.

[Hosannakk]

The truth is, almost everybody can be a successful trader.

I am no Einstein, by any stretch of the imagination and I have managed it.

Being successful takes a great deal of time and persistance. Many of us have very busy lives and beleive we do not have the time to start trading stocks.

[tim_v]

The truth is, almost everybody can be a successful trader.

I am no Einstein, by any stretch of the imagination and I have managed it.

Being successful takes a great deal of time and persistance. Many of us have very busy lives and beleive we do not have the time to start trading stocks.

Well certainly anybody might make money trading stocks but it's not possible for everybody. If you separate the money people make in stocks between owning stocks and trading stocks the average person will lose money trading. That's because whenever you buy a stock someone has to sell it and whenever you sell someone has to buy. So if you only own a stock when it's going up someone else has to own the times that you don't. On average, before expenses everyone breaks even just like going to a casino. But when you include expenses the average person loses by trading.

[robertgpitts]

Dittos to what Tim just said. I'll add something I just read in The Investor's Manifesto by William J. Bernstein: When you trade stocks, you have to consider who you're trading with. Is it a retired pensioner who just needs to raise some cash, or is it a pro who has way more information about the stock than you do? You just don't know, but the odds are good that it's the second person and not the first. Considering the uncertainty, trying to beat the market by active stock picking is a fool's errand, and trading is utter folly. Much better to have a sound, diversified investment strategy based mostly on low-cost index funds. If you can't resist the urge to trade, it should be with a fixed amount of money that's a tiny portion of your overall portfolio. And when it's gone, it's gone.

Robert Pitts
Freedom Personal Finance

[Daniel]

Hi,
I also read a couple of books and I read financial websites daily to keep me plugged in to trading trends. After about a year of this, I started to use my money with the trades that I would experiment with the fake accounts.
Scottsdale Homes for Sale

[Andrew]

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[linkdire42]

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[makingchristian]

I started with stocks today. I decided not to trade. A number of years ago, during the .com days, I traded regularly and lost much of what I invested. My strategy now is to buy blue chip stocks that are inexpensive but with strong companies and hold onto them for the long haul. I believe this is a better idea than trading. If someone wants to trade, more power to them. But I learned my lesson!