Good Place to Learn Stock Market Basics?

[Josh]

My wife changed jobs about six months ago and has some money in an investment account with schwab that let's you buy and sell for $9 trade so I've been playing with it. I'm up about 9% which I think is pretty good. It's a realized gain because I sold out yesterday and it's all sitting in cash right now. It's not completely "beginners luck", but I would like to learn a bit more about it. Of course I wouldn't expect anyone here to give securities advice, but are their any sites better than others when it comes to learning "basics"?

 

[Justin Bilyj]

I love babypips.com they are mostly forex centered but they REALLY take you through the types of trading and the types of analytics in a high school format. The forum is a great place too...

 

[FL P&C Broker]

If you wanted to get into options check out tastytrade.com. Their school of thought is by capping your profits you can lower your cost basis and increase your probability of success.

 

[scagnt83]

For technical analysis babypips is great!!
I trade FX so technical analysis is huge in what I do.

But for stocks you cant rely on technicals alone.

But a lot depends on what you want to do.... do you want to trade or invest? Trading is short term high risk. Investing is long term med risk.


For trading Jim Cramer is hard to beat. I know that a lot of people do not like him. But just look at his charitable fund that he manages, it does very well.

A lot of people will point out a recommendation he made and show how that stock is now lower. But what people dont understand is that a "Trade" has an expiration date. It is not meant to be held a year. So you have to pay attention to the time frame.

I am not saying to listen to him for stocks to pick. But read some of his books about trading fundamentals. He has also done some series on his show about the basics of trading on fundamentals.

For trading based on Fundamentals (not technical analysis of charts), Jim Cramer is one of the best minds out there. (imo)

 

[Justin Bilyj]

Amazon.com: High probability trading : take the steps to become a successful trader (0639785382409): Marcel Link: Books

This book is great. I know it is from 2003 but it covers the basics of investing which is centered around time frames, entering the market, leaving the market aka when to take profits, trader psychology and most important, trading probability in relation to amount per trade compared to the total account. This concept is SUPER important if you are to last long trading anything...

 

[Josh]

But a lot depends on what you want to do.... do you want to trade or invest? Trading is short term high risk. Investing is long term med risk.

It's a hobby, so I'm trading. I'm sure there is a term for it, but I've been looking for stalks that are stable enough, but fluctuate. So take a stock that's trading at $25 let's say, but swings $24-$27 pretty regularly. Buy in at 24, sell off at 27, buy in again at 24, sell again at 27, etc. Maybe those aren't the exact numbers, but that's the idea. Of course with my current stock I just cashed out on it could go up and up and up so the plan doesn't work, but regardless of what it does I made 9% in less than half a year and I cashed out so that's really and truly a gain. I know nothing about the stock market, but that seems like a pretty good little hobby. Hell, that stock only did about 3% last year with dividends, so if I let it sit in cash up 6% higher than everyone else that keeps it.

 

[Justin Bilyj]

You sound like a day trader or scalper. I would also pay attention to stops and trails and also be sure to factor capital gains taxes in your roi...

 

[xrac]

Lex van Dam Trading Academy Deal of the Day | Groupon

 

[pcbinsurance]

"You sound like a day trader or scalper."
*****************
What Josh is describing is along the lines of Swing Trading----holding for a short period and try to make a buck or three per share.

Day traders are 100% cash at the end of every trading day.

Scalpers, on the other hand, make up to hundreds of trades daily looking to capture on small moves, rapidly, within the trading day, utilizing TA tools such as short range (1-5 min) charts.

Of course, this is not for the faint of heart and protecting your gains is paramount. It's a momentum game.

 

[ineedhelp]

I know very little about investing, but I have a new client who's involved with a program called: northoftheblue.com.

Check it out.