"10 Stock Trading Tips for Newbies!" by De Williamson
1. Use your extra money if you decide to start trading. In case you lose your money, don't use your savings, and definitely not all of it.
2. Research the best stocks. Take the time to look at their Payout ratio, past performances by
looking at their Profit and Loss, and Balance Sheet statements (this information can be gathered from Financial Times Company Statements service or request this information from the company website directly). Also it is safer to put money on Small-capital and Mid-capital companies rather than on Large-capital companies.
3. Now the trend is to trade online, so look for good websites who teach newbies like you about what and how to trade. There are sites who are dedicated to only teach and some who not only allow users to try out their site for free but also teach them through their learning center.
4. Become active on different forums and blogs where investors communicate with each other daily. This will not only keep you updated with the latest financial news but also
you will make new and long lasting business contacts.
5. If you do not want to risk on stocks, then opt for a website which deals with commodities or currencies as a whole or intra-day trading or index or stock trading, for example if you comfortable to
trade on Forex look for information on trading with these sites.
6. There are many strategies and trading methods. Always keep in mind to look for new and innovative methods to trade online.
7. Make sure you cash in quickly with any profits made while trading,just in case the website shuts down with your profits (this happens rarely but its better to be safe than sorry).
8. Follow your trades everyday since markets are unpredictable. A trade might be profitable one day and at a loss another day.
9. The other important aspect is to take your profits made in stock investments and put it toward other investments such as real estate. This will enable you to have a diversified personal portfolio.
10. Remember that trading is taxable income, check the income tax rules of your country to be able to understand the way your income will be taxed.
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