Learn to trade in Stock Markets

If you always heard about people making money by trading shares,bonds,etc and now you yourself want to take the first step, then you have made the right move by visiting this site. Now since, this page has to cater to the requirements of a variety of visitor profiles, it is not practical if I straight away start off with what you should do. So, as a basic minimum, this page requires that you go through the numerous terminlogies that are given in our terminologies section, browse other parts of the site to have a general knowledge of what a share is, what bonds, forex, mutual funds are. If you already have a basic knowledge about these, then this is more than sufficient.

Now, before you start putting your money, you need to make sure about what your economic resilence power is going to be. Let me tell you that no matter how well the stocks are moving, if you are a beginner, then it is surely not going to be a very rosy path straighaway. You will be making a lot of mistakes initially. This is quite true since, though I may want you to stay away from other trading advices and listen only to mine, you still might not feel comfortable and with a variety of advices come a variety of options and until you find a balance between the advices you take and the moves you make, there is certainly going to be a hitch on the way.

So, does that mean that you are really going to lose money? Not necessarily, unless you do your homework. This means that when you set out to trade your first share, you should infact not be doing it for the first time. To help you in this, there are several Virtual Stock Market games available on the net. Some of them are even free. The essence of the entire exercise is to see how you trade the virtual money to buy and sell shares. You will know if you make a profit or loss. Do not do this just for a day and after making a profit, set out to trade. You need to go through all the phases of the market. There can be some days when except for a very few shares, all others would have made losses. And somedays, except for the ones you have bought the others would have made profit. You need to go through losses, analyze those impulses that make you go for the shares of a particular company, understand if your impulses were right or wrong, and if wrong if you can make your decision right the next time,etc. You need to do this for atleast a couple of weeks so that you get used to the environment of losing and winning.

Understand that the stock market is not a center of gambling. The highs and lows that the stocks make are out of tiny pieces of information that flow about the company. Suppose, take the case of Google. Google is one day asked by the US govt to submit all search information for security purposes. Now an event like this might force Google to disclose confidential data which can be used by its competitors. In a situation like this, most investors might end up selling the stock as this is a negative sided news. On the other hand, when Google takes over 5 percent stake in AOL, this indicates a growth trend for the company when the stock price is likely to rise. Thus, you need to look at these pieces of information and not simply speculate. Let me also make it clear that a negative sided news need not always result in stock prices falling and vice versa. But this is the general trend and you need to take quick smart decisions and that is why trading stocks is such a beautiful thing to do.

Now after trading virtually for a couple of weeks, you need to register with a broker. These brokers run online interfaces thorugh which you can buy or sell stocks. You can get other information regarding opening and maintaing your account from other sections on our homepage.

Now from now on, all you need to do is keep looking for pieces of information, stick to those stock alert news that helped you to make profits during your virtual tradings. Happy Trading!