Tuesday, December 1, 2009

If You Happen To Be A Beginner Then Make It A Point To Learn How To Trade Stocks

By Jens Jackson

If you wish to learn how to trade stocks and make good profits be sure to understand that this is an activity that does not allow beginners (by and large) to succeed until they have become experienced enough to understand the ins and outs of the industry.

However, by doing your homework there is no reason why even a newbie cannot add one more important dimension to trading profitably on the stock exchange and so make profitable trades.

When it comes to learning how to trade stocks you will also do well to understand that by buying stocks in a company you are in effect becoming part owner of the company. Therefore buying stocks in companies that are expected to do well in the future will help you earn money as the better the company performs the higher its stock prices will rise. This means that you only need to learn how to buy when the prices are low and sell when the prices are sufficiently high.

Companies are known to list their stocks on different stock exchanges that can be located anywhere in the US. In fact, different stock exchanges are always engaging in stiff competition with other stock exchanges. This is because a company whose stocks are much in demand will attract more money to trade in and this helps the stock exchange to make more money. So, they need to outdo the other stock exchanges.

When it comes to making profitable trades in the stock market you should learn to differentiate between stocks with a ticker assigned to them and those that do not have these tickers. A ticker or a trading symbol allow you to remember a stock and can be considered the company's DNA. Knowing a stock's ticker means that you can find out more information about the company and its stock and then you can decide whether or not to trade in it.

Investing in a stock means that you are making equity investments and each share that you invest in will mean that you have become a part owner of that company. Stock options, however, are different and are not physical things (like shares) but instead are contracts between a pair of contracting parties. So, trading in options is different as the option only works out to be an agreement or a contract wherein one party agrees to sell or deliver something to the other party within a certain period of time and for an agreed-to price.

These stock exchanges are good places to trade in stocks and they will also help you get information on stock trading as well as in making general investments. These stock exchanges also, from time to time, will give some free seminars on how to trade in stocks and also how to succeed in investing your money.

These stock exchanges are all controlled by the US Stock and Exchange Commission that is a watch dog as well as regulator of the entire securities industry in the United States. In addition, it also provides programs that help in educating investors about among other things learning how to trade stocks. - 23309

About the Author:

No comments:

Post a Comment