Some brief tips and story:
Ever since high school, my Junior year, I've been dabbling in the market. When I first began there was little profit being made and often times I would lose every penny. The fact of the matter is: you're going to lose. And there's pretty much always risk, especially in today's market. A handful of things I recommend for beginners is as follows:
- Do your research! Research, research, research!
- Know how much money you're willing to (or comfortable with) spending and losing.
- Be patient. Don't rush a trade, and don't panic-sell.
- Never buy or sell early in the day (e.g. at market opening).
- And finally, always check the “bid size” and the “ask size” for any stock before entering a buy or sell order.
Hint: A large ask-size will usually determine a bunch of people trying to sell the stock (or jump ship).Why does this matter? Two reasons:
- You can avoid a huge loss.
- You can net a gain long-term (buying low).
If you have any questions, let me know. I'm a daily trader but very rarely take large profits because I don't have large amounts of liquidable cash. However, I'd say when I began trading, about 70%-80% of the stocks I invested it netted a loss. But today, it's the other way around. You really just need to be patient in the beginning.
