Learn Stock Market Trading

Trading Stocks in Today’s Stock Market

What exactly is the Stock Market?  It is an organized system where anyone and everyone can either buy or sell their stocks or shares.  Traders buy stocks from over 8000 listed companies.  Basically, the stock market deals with the stocks of listed companies.  But before amateur traders dive in, they need to prepare for the unforgiving stock market. 

Every trader can make transactions with any other trader.  Regardless of whether they are a beginner investor or Warren Buffett, they are allowed to trade with anyone.  A stock’s price depends on the supply and demand for that particular stock.  Between the buyer and seller, there is a middleman known as a share broker.  He handles the share dealing, helping the seller and buyer mutually decide the price of the trade.

There are two places to trade stocks: in an open market or on a computer terminal.  The open market is an open place in the stock market for trading, and the process is known as open outcry.  Here, traders gather and wildly shout their quotes or bids to sell their stock in the stock market.  This is known as “bidding”, and it doesn’t stop until a bid is singled out as the highest.  The other place to trade, through a computer terminal, requires traders to bid through computers within a network. 

Most beginners ask what their initial stock account balance should be at before they begin to invest.  How much money a trader places in the stock market will rely on how many shares of stocks that person wants to buy and what the price of each stock is.  A person needs at least three hundred dollars and an account with an online brokerage company to begin investing.  Once they have acquired an online account, they can get quotes for their stocks which include an ask price and a bid price.  The ask price is the lowest price at which they can buy a certain stock, and the bid price is the highest price they could sell that stock. 

Almost all traders, amateurs and pros, constantly have this question in mind, “What stocks should I buy?”  If you are an amateur, it would be best to seek the advice of a financial expert at first.  Brokers are a good place to start, and they are easily accessed.  Newspapers, magazines, and television are also an excellent source of information.  Traders should always research a stock extensively before buying it.  They should learn as much as they can about it.  You could also read about the latest stock news and stock market headlines from a newspaper or investment sites like http://www.zacks.com/stock/news/AnalystBlog

If you do not make a profit on your first trade, just remember that being a trader takes patience, endurance, and hard work.  A good trader should invest more in long-term stocks rather than short-term stocks.  Short-term stocks are much riskier than long-term stocks.  They should also be prepared to take a few losses when they are trading, and not become discouraged from continuing to trade.  Lastly, smart traders always do their research; they study everything about the stock from its past trends to its current earnings.