A Beginner's Guide to Make a not so Quick but Consistent Profits

Anyone who has watched the film Wall Street knows how exciting and lucrative the business world can be. With the technology we have today, a regular John Doe can become the next millionaire with the right moves. Unfortunately like the movie, the stock market is a cut throat world where hard earned savings crash and burn.

Decide your Future

The great thing about trading today is you can do it almost anywhere with a computer, internet connection, and television. Are you going to be a part time or full time trader? Decide how much you are willing to commit and prepare. If you want to earn a living through the stock market, you have to make sure you are prepared enough to take the risk.

Know the Terrain

Before diving in you have to familiarise yourself with everything about trading and the stock market. Apart from the internet and self help books, joining forums is also a great way at getting tips from novice and pro traders. Skip the comic section for the mean time and read financial papers. Watch the news. CommSec (Commonwealth Securities), among brokers, offers a free account that you can take advantage of. Use their depth of market data and charts to keep tabs of the Australian Stock Market.

Choose your Weapon

You need money to make money, so make sure to save up. Any trader will tell you that money will be inevitably lost along the way. Use money that you can afford to lose. You don't to have to sacrifice everything or else you won't survive. $2000 sounds reasonable enough but be sure to have extra cash. Get a discount broker that you can trust so that you won't lose your money to commissions.

As Always Practice Makes Perfect

Before trading in the stock market for real, you can practice by paper trading. You don't have to worry about blowing up your whole account in a couple of minutes. There are various trading simulation tools on the internet that enables traders to try out their strategies without losing money. Absorb what is useful and learn from your mistakes.

There is no way to make quick money. According to some people 97% of traders are failures. Although there is no statistical evidence that proves this is fact, you can't deny the fact the a substantial amount of money is indeed lost by traders. Although you can't be a millionaire overnight you can make consistent and sustainable profits in the stock market as long as you keep yourself informed.