Start making money with Stock Market
Making your first stock trade can be quite intimidating. There is new language and
symbols that you don’t always understand. You can reduce your stress by following a
few easy steps.
Step1. Learn the language of the trade. Find out about the types of orders you can place.
A market order is one that you buy at whatever price the stock is at the moment you
place the order. This type of purchase is not for the first time investor. Instead, use a
buy/limit order. The buy/limit order limits the maximum price that you pay for the
stock. If the stock is available for a lower price you get that price. The same concept is
true for sell/limits, but it is the lowest price you want to sell your stock.
Step 2. Decide if you are long-term or short-term buying. In order to make money in the
stock market you need to identify the plan you want to follow. A short-term buyer looks
for the easy, but frequently small, movements of the stock and buys or sells accordingly.
Long term buyers seek out stocks that they believe substantially appreciate over a
period. Microsoft millionaires got the penny stock as a bonus, because it was worth so
little many just held on to it and later were delighted they did.
Step 3. Choose an area you know something about. A stock club of women made
fortunes by stopping at restaurant chains, visiting stores and consuming the products of
the companies they bought. One of the best mutual fund managers in specialty stock
used this practice to become the top manager in the nation. When you choose a stock for
a long-term investment, know the business.
Step 4. Watch the price fluctuation. Each stock has a different rhythm. The short-term
buyer watches that rhythm and works with it. If you find a stock that you like and notice
it has an up and down, almost predictable price, use the information to make additional
money. Put a buy/limit order in at the low end of the cycle.
You may miss an opportunity by pennies, but if it is truly a repeating cycle the
opportunity comes back again. Wait until you purchase the stock and immediately place
a sell/limit order for the higher end of the cycle. Make sure the spread between the two
is enough to cover the cost of both trades and make a profit. If the cycle is continuous,
do this repeatedly.
Step 5. Concentrate on one or two stocks. When you begin to trade, it’s easy to jump all
over and buy a little of several stocks. That is diversification, but costs you more in
trades in the end than you make on profit. Focus on one or two stocks to begin your
trading.
Step 6. Buy stocks with higher volume. Some of the penny stocks are tempting but
when you notice the volume, it is quite small. This means that when you want to sell,
there aren’t many people buying. Unloading the stock becomes difficult.
Step 7. See who manages the company. Some CEO’s have wonderful track records. If
you notice that the CEO managed three previous companies and they all went belly up,

he may not be bad, he may be the man they call in to close a company down. Check the
management carefully.
Step 8. Track your trades. List the dates, share price and number of shares on one side
and if you sell list the date and price on the other. Track the profit to see what
percentage you take. You need these records for the IRS. Aim for a 10% to 15% profit
on your money. In a down market, 8% is still good.
Arkaitz Arteaga MarketStock.net