Stock Marketing Newbie

Due to the possibility of turning a hundred dollars in thousands overnight, many newbies are lured into the stock market. They all dream of their own rags to riches story. There is no qualification to be a trader so any John Doe can make money with enough skill. Unfortunately, some of them are carried away by the hype, thinking that they struck an untapped gold mine and all they have to do is knock on the right place.

The Myth

If you've seen the Wall Street movie, its easy to be dazzled with the exciting and lucrative lifestyle. More often then not, the stock market is portrayed as a wild playground in films. The protagonists is way in over his head, but with a chance meeting with a ruthless pro (who underestimates him initially) and/or a sequence of events, he hits it big in a short period of time by using his charms.

The Reality

Being a successful trader takes a lot of work. Even earning a net profit of earning $100 a day can take a week or month. The competition is cut throat and the market will do whatever it wants no matter what you do. All you can do is know the ins and outs of the stock market and execute a well researched strategy that works for you.

Basic Rules

• Decide on what you are going to invest on
• Decide how long you are willing to trade
• Do not put your whole asset on stake, even if you lose, you'll live another day to trade
• Set expectations that is accordance with your trading experience
• Start with a capital that you can manage
• Work backwards, consider broker fees and taxes that may apply before setting a trading goal
• Study and research, but this does not mean you should copy Warren Buffett's methodology to a tee or pay $9000 for a live trading chat room
• Use a personalised strategy, not all methods work because every trader interprets data differently
• Be flexible enough to adjust to market changes
• Do not make a decision based on your emotions

There are no guarantees in stock marketing. There are no gift wrapped answers that will enable you to afford an island. Even billionaire investors had to work hard to get to where they are now. No matter how big your trading capital is you'll lose it if you don't know how to manage your portfolio.