CFD, Options, Warrants, Forex, Shares, Products & Services, Psychology, Fundamental Analysis, Technical Analysis

A state of the art share trading computer system is unlikely to make you a trading genius, nor improve your productivity, but it is certainly convenient (not to mention there's the cool factor). It can also boost your efficiency (i.e. cuts down on Alt+Tabbing). Make sure to assess your needs before sinking money into a super-advanced killing machine. For people counting pennies, ask yourself if you really need the the bells and whistles. Try going the upgrade and second-hand route if you're unsure.

System

It's easy to get lost without a map, whether in life or in trading. With a map, at least you know what happened and where you were going even if you miss the mark. A trading plan is a document that details your investing rules and your trading objectives. What is the difference between a trading strategy and a plan? A strategy is part of the comprehensive set of rules of the trading plan. A plan can cover every aspect of your trading life.

Getting stuck in a losing streak is harsh, especially if your just a beginner. Trying to figure out where you went wrong is not easy for someone who's not that familiar with the ins and outs of the stock market. Even though every trader has a different methodology, there are common components that you have to go over. You can do all the research that you can but all data can only tell you want happened before not guarantee what will happen in the future. If you are in a losing streak, its time to go over your trading plan or rules.

As a beginner, there will come a time when your trades crumble and fall apart. For you, everything is in the right place, you did your research, and probably wrote down a plan to steer you through profitability, but the Market seems to be in a bad mood every time you make an entry. Your system worked before, so why isn't it working now?

There are as many different opinions on what makes for trading success as there are stock market investors. Successful trading is not built on a foundation of secrets, but on solid skills and knowledge. Both come with experience. As a beginner, educate yourself as much as possible about the stock market, learn the terminology, learn money and risk management and develop skill and edge. When you have grown accustomed to riding the market, you will find what works and what does not. This is your personal strategy development.

Know the Stock

The stock market can be really harsh to beginners, so apart from research making a trading plan is sensible to guide you through. Unfortunately not all plans work. As a matter of fact, some traders don't even make a plan. They ride the trends instead of trying to analyse the stocks. Whether you want to dive in or write a plan of our own, it doesn't really matter as long its profitable. Every plan or strategy is different from one trader to another, because they use what works for them.

How to start:

Traders eventually go full time as they gain experience and earn more money in the process. Knowing the ins and outs of the stock market takes a lot of time, and can only be learned through trial and error. However there are those who prefer trading the market rather than go to a routine 9 to 5 job. Rather than wait for pay day, traders can generate profit every day. But the question is with the uncertainty of the market, is it advisable to leave your day job that provides a steady source of income?

For reasonably smooth trading, you should create and consistently follow a set of rules. One of these rules is setting up stop loss or exit points. Stop loss during trading is an option. Most traders always use stop loss points, while others never use them for certain reasons. While these reasons are legitimate, reasons for using stop losses are more important.

Before the market takes you to the cleaners, you use a stop loss order. As the term states, stop loss is the trading exit point used to limit the amount of loss. Say you want a stock price to move upwards. If the price drops too low, you will want to get out of there and stop trading.

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