| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 7/13/2005
Posts: 1
|
Hi trainer..
My question is: How do i get started into buying stocks and where do i buy them, especialy that its my first time into buying any..
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
This is not the sort of question the trainers can answer. However, I'll move this to Stock and Market Talk where other traders are more likely to see it and comment. You may want to watch the following video:
If you are new to TeleChart READ THIS FIRST!
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 5/17/2005
Posts: 221
|
three comments from me ...
1) before learning which stocks to buy learn about risk management and portfolio protection .. including stops, risk / reward ratios, FEAR and GREED .....trading psychology . One thing that one mentor taught me .. trade to trade well not to make money. It makes sense to me now ....trade well and the money comes. REALLY IMPORTANT TO LEARN RISK MANAGEMENT ....
2) I personally like to buy stocks that are in uptrends , 250,000 min volume (liquidity) and 40% institutional owned. Telechart can provide all those scans for you.
3) read a few good books .. my favourite authors are Toni Turner, Larry Conners and Martin Pring . They all have great books out ..specially Toni Turner ..she has one on beginners guide to day trading and beginners guide to short term trading.
ok 4th comment ......I did say only three ...
start out with swing / short term trading ... then day trading later once you have gained more experience....
MMM ...5th one and last one
Worden have some great DVDs on BOP , MS and TSV indicators .. invest the money they are worth it...they will help you find buy candidates.
One very last thing .... the trend is your friend .. do not trade stocks that are in down trend even if they are in a pull back .... higher risk ....
|
|
 Gold Customer
Joined: 5/4/2005
Posts: 74
|
sammanhs:
malcolmb14's comments are very applicable to your situation. I have read most of the books he cited ... they are excellent for someone new to the trading process.
I suggest you also read Alexander Elder's "Come into My Trading Room" to get the "big picture" ... market psychology, technicals, risk managment, money management, etc.
Also, you should open a broker account. I suggest you select a broker that has local offices. The broker is staffed with people who will spend the time with you to teach the mechanics associated with placing trades, order types, managing accounts, etc. I have found the people at Schwab are extremely helpful and Schwabs fees are competitive. If need be, you can change to a broker suitable to your specific needs.
good luck,
markacz
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
Good advice by all. I always love to get my two cents in. I'm a strong advocate for what I call the 10-10-1 rule...and falls right in line with malcolmb14's all important risk management importance. Never put more than 10% of your money into any one stock/trade. And never risk more than 10% on any single postition. Do this and you will never lose more than 1% of your balance in a single position. This is from my perspective of swing or short term trading. I'm sure it could work well as a guide for day trading too, but I know some daytraders like to put a higher percentage of their money into day trades.
That doesn't mean though that you should always be willing to risk 10% loss on a trade. Only use 10% when there is no obvious support level of some sort. If well defined support is 3% below your entry, then 3% it is! Actually, getting down to nuts and bolts, don't get out in that scenario at exactly the support level. Assume well defined hard support on a buy is $8 and you bought at 8.10...set your stop around 7.80 for example. That's a .30 loss or .20 below hard support, or a bit more than 3% from your buy point. If you find a stock you like but it's not at an ideal entry position, show patience and place it in a watchlist. Along with other stocks of course...sooner or later one or more stocks in your watchlist will pullback on low volume for a lower risk entry. Do NOT become infatuated with a particular stock...there are too many others out there in the stock universe. Telechart makes it easy to watch stocks that catch your eye but are not at ideal entry prices. Good luck sammnhs.
|
|
Registered User
Joined: 5/17/2005
Posts: 221
|
nice advice fpetry ....errr i am guilty of putting more than 10 % of my money on single positions ....ussually 20 % runing 5 positions at once ... but i have tighter stops than 10% ... usually 3% ...seems to work for me.
Just one more comment for sammanahs ....
get rich slowly ......meaning do not take risks on stocks that you think may sky rocket and make you 100% in one day (yes there are a few out there right now....look back at CTTY a while ago ..peak was 450 $ , closing out at 375 % increasein one day).
I started trading in NYSE stocks ....less volatile than NASDAQ stocks.
|
|
Registered User
Joined: 7/9/2005
Posts: 8
|
Well I feel that Platinum gave you a good list of reading material. Also even more important Platinum seems to understand that Prudent Money-Management techniques are the cornerstone to success. I would also agree with Gold as to having a mentor. Now I would advise Paper Trading for at least 1 year. One should also understand Economics, Mathematics, Market Psychology, Technical Analysis, Fundamental Analysis & Most Impt Risk Management. (removed by Moderator)
|
|
Registered User
Joined: 2/13/2005
Posts: 26
|
Sammanhs,
It may be helpful to understand where you are located to give advice. Some members of this board are outside the US, and if you are one of these the advice may be quite different than if you are in the US. It may also make a difference if you are in a large metropolitan city vs a rural location. If we know what general area where you are located, maybe someone could point you to some local advice/mentors/help ...
Another aspect that you should consider is your trading style (and the trading styles of others you are communicating with). There are day traders (holding positions only during the day), swing traders (holding positions for a few days to a few weeks), and long term traders (multi-month traders). Different people's personalities guide them into different categories (mostly due to comfort level). Advice from one category does not always apply to other categories. Have a feel for which category you fit into as well as others who you are taking advice.
The journey to understanding trading takes time, but it well worth the effort. Welcome to world of investing.
rkd998
|
|
|
Guest-1 |