Trading

The percentage of traders who fail is a daunting figure. The market has a sadistic sense of humour and traders often fail because they are not up to it. Randomness is a cause, and so is having limited trading experience. Telling the difference between random acts of the market and true lack of skill should hedge against both overconfidence and beating yourself in the head for things that are out of your control.

Blood, busted neurons and lost capital under their belts separate the big boys from the plankton. As to how the sharks reached that blessed place, they certainly did not look up at the stars for help in shedding their amateur status (although employing astrology is your choice.)

Different people have different answers as to when they are ready to trade professionally for a living. Targets depend on your personality. One trader would consider trading from home when he consistently hits $5000 month for at least 2-3 years, along with confidence that his trading strategy is working.

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?

Companies have to make announcements now and then. With the hustle (mostly) and bustle of the stock market, you may need more than the typical tapping on the glass to be heard. Companies have the option to temporarily suspend trades when they have an important announcement to make. This gives investors a breather to evaluate their trading options. A trading halt shares similarities with suspension of official quotation because both stops trading activities related to the company, but they do have a difference in relation to the sequence of events.

Trading Halt

There are wide array of methods and information for any beginner who wants to trade in the stock market. Trading the sharemarket can be overwhelming at first, especially if you don't know much. Some successful traders might tell you what you should do - or someone pretending to be a guru to prey on unsuspecting newbies - but others insists otherwise. Fortunately there are nuggets of wisdom that can be very helpful.

What you need to have:

So you want to start trading but don't know where to start? You're already on the right track, because you're asking questions and doing research before playing with the big boys. Nobody's going to hold your hand so you might as well put in the effort.

Arm Yourself with Education

You can never bee too educated about the stock market. If you think you have enough knowledge, curve balls can hit you without warning.