Every day, thousands of new investors join various markets across the world. Some of these investors are trying to get rid of their boring jobs and few others are just trying to make some extra money. Only few people start investing in the stock market with a permanent goal of becoming a successful investor. Below you'll find a compilation of great stock trading and investment tips that come handy as you move forward -one step at a time:
1. A new investor should be mentally prepared to take some financial losses. When you begin to trade stocks in the market, there are no guarantees that you'll continue to make the right moves. Mental preparedness can help you to stay focused on the market and its indicators.
2. You need to learn about stop loss orders before you start investing your hard earned money in the stock market. You should be able to cut all your losses by not more than 8 percent below the price at which you purchased the shares under consideration.
3. Since you intend to become a successful stock market investor, you need to learn the art of persistence! Small failures on the way should come as lessons and not discouragements. In any case, you should continuously remind yourself of the fact that all successful big names in the stock market did not reach the zenith overnight. They've worked hard for years to reach that stage and you can do the same!
4. Do not let yourself assume that a single book or a month long stock trading training program will make you a great investor. You need have a humble opinion of yourself in the beginning. Aggression of any kind is not a great trait for an aspiring investor.
5. When take the first step, make sure you choose the right discount brokerage available or full service. A broker, if any, should be chosen with great care. Always choose a broker who has a proven track record. You can even speak with his or her past clients to be one hundred percent sure.
6. A novice stock market investor shouldn't open a margin account right in the beginning. Initially, you can get started with a cash account.
7. Don't assume that you need a big sum of money to learn stock trading. According to expert investors, you just need 500 or 1000 bucks to get started. Always remember the fact that experience is the biggest teacher and nothing else can beat that! What a novice investor needs is experience and not a big fat investment to start trading in the market.
8. A beginner in the market should stay clear of volatile investments of all kinds. Repeat failures in such volatile areas can lead to discouragement.
9. Getting emotionally involved with your stocks it the biggest blunder that you can make as an investor! It is important that you follow pre-determined buying and selling rules to avoid getting caught in your own waves of emotions.