#1
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Advice on first steps into the stock market.?
Hi.
Any advice for a complete beginner interested in trading short-term stocks and shares? My basic knowledge is next to nothing and I was thinking the FTSE equivalent of Party Poker Playmoney would help me along a little. How difficult would it really be for a reasonably intelligent individual to turn a small profit after some studying and financial investment (lets say $100 to start with). I was thinking it could hopefully be a new hobby similar to poker. Any idea of the best ways to get started in this direction? There seems to be a lot of rubbish out there and was hoping somebody could point me in the direction of where I can learn the fundamentals. Cheers. |
#2
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Re: Advice on first steps into the stock market.?
Obviously, it's a good idea to read everything you can on the subject. A couple of my favorite books:
The Battle for Investment Survival - Gerald Loeb How I Made $2,000,000 in the Stock Market - N. Darvas Now, being a beginner, you're going to go through a period of experimentation, which usually means losses. So, you don't want to pour too much money into it. By the same token, the play money approach doesn't work because it doesn't simulate the emotional factor. IMO, for a guy with an average income, $2,000 is a good starting amount. You can always put more in your account as you get more experience. As far as an online broker, I use ETrade and haven't had any major problems. Hope this helps. |
#3
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Re: Advice on first steps into the stock market.?
[ QUOTE ]
Hi. Any advice for a complete beginner interested in trading short-term stocks and shares? My basic knowledge is next to nothing and I was thinking the FTSE equivalent of Party Poker Playmoney would help me along a little. [/ QUOTE ] You don't need that if you have a pencil and piece of paper. BTW, paper-trading before you start for real is not optional, it is a MUST. [ QUOTE ] How difficult would it really be for a reasonably intelligent individual to turn a small profit after some studying and financial investment (lets say $100 to start with). I was thinking it could hopefully be a new hobby similar to poker. [/ QUOTE ] Very. I take it you mean to buy only $100 in books and magazines? You cannot even subscribe to thestreet.com for that. There are some trading books that cost over $100 EACH. I would budget at least $1000 for educational materials starting out. You are also going to need a decent-sized stake. More than a few thousand because commissions will eat you up on short-term trades. I don't know if the UK has any brokers like IB that charge a penny a share. |
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