Sunday, April 26, 2009

Beginner Stock Market Investing

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Beginner stock market investing is where you'll want to focus on how to get started investing in the stock market. Since you are new, it's often recommended that you "paper trade" to get the hang of how the market goes up and down. This means that you would pick a stock and record in a practice financial ledger your gain or loss. These days, paper's probably no longer required as you can set up a mock stock portfolio on many websites including at Yahoo! finance. This is a very good free internet resource for the investor just starting out who doesn't have a lot of money to spend on investment services that provide more detailed information.

As a beginner, you'll also want to start researching where you'll want to open a brokerage account online. There are many services available and trading stocks today is much cheaper and easier than ever. After that, you'll want to look at the minimums to open an account and the type of account you'll need. Are you opening an IRA stock account or Roth IRA? Is it a custodial account, joint account or account in your own name?

I suggest that you apply for not only a cash account but also apply for the margin and option features of the accounts whenever you open an account so that will be in place should you ever need it.

Once you decide on an online broker, you might also search the web or look at their website for special promotions for new accounts. I saw one the other day at E-trade that offered a free blackberry. Many times they offer so many free trades for investors beginning new accounts with them. If you don't buy and sell much stock initially though, most of those freebies will expire before you can use them. But, it's better than paying for your first few trades.

Once you have opened your stock account, you should the familiarize yourself with the tools the account provides, sign up for online statements and trading alerts as well as look at how to execute trades. If you have any questions, be sure and call the 800 number customer service as they'll be happy to answer any questions you might have.

Trades are usually executed as market orders so if you want to buy at a certain price that hasn't been reached as of yet, you'll want to place what is called a limit order and not a market order. Most orders are good til cancelled though so once you execute a trade, you'll want to keep an eye on it in case it is not executed right away.

As a stock market investing today beginners trader, you'll want to advance from paper to the real thing as soon as possible because that is the only way you can really learn- by using real money and seeing how you handle investment decisions when your own money is on the line and not fake money. Funding your account is easy but it still might take a few days to have your funds available.

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