Trading Basics

Trading stocks is easy and difficult at the same time.   Like most anything else you do there is a learning curve involved.  You have to start buy actually learning how to buy or sell a stock.  Then you have to choose your broker, find stocks to buy, set up your charts and then develop your trading plan or style. 

There are a myriad of sites on the internet where you can find some of this general information, however, on my site l list what I think is a good step by step process to developing your plan.  From determining what symbols you want to look at to what your chart should look like.  I use TD Ameritrade so everything will be based on that but if you use another platform hopefully you can assimilate the information.  For the trader that has some knowledge already you can skip the steps you think you have covered.

A majority of my learning area is done in video format.  Seeing what is being discussed is often easier than just reading about it.

Below is taken directly from my "start here" page.  The only thing missing are the links to the videos fro each step.

 

Step 1 - Choose Your Broker

  • There are many online brokers to trade with.  Make sure to check fee structure, tools offered, minimum account balance required, etc.

 

Step 2 - How To Find Stocks To Buy

  • To get started to need to know what stocks are out there to buy.  You need to determine criteria that fits your trading style like volume and price and then screen for those stocks.  This list you create here will mainly be used as you screen your different strategies and look for stocks to add to your watch list.

 

 Step 3 - Find Stocks For Your Watch List 

  • Now we need stocks to focus on.  Your watch list can be as big or small as you want.  Stocks can make your watch list for a myriad of reasons. They may be set to break out or are at support or, as in my case, be made up mostly of good up trending stocks.  This may also be intertwined with Steps 4 and 5 but in the video I show you how to find these stocks without knowing your chart setup or trading plan.

 

Step 4 - Set Up Your Charts

Part 1 - Indicators located directly on price chart

Part 2 - Indicators located beneath price chart

  • This is where it gets a little more confusing as your chart setup will change frequently as you fall in and out of love with certain indicators. This will also take some time and overlap with Step 5. The key is to make sure the indicators on your charts coincide with your trading style/plan.  For example, if you have the MACD indicator on your charts but never use it for your entry or exit strategy then get it off the chart.  You also need to make sure that you do not have indicators that are repetitive.  This is also where this site and myself come into play.  We have all the videos on all the indicators in the Learning Center to assist you and you have something I never did - someone to bounce your ideas off of, I will always be here to answer any questions you have at almost any time.

 

Step 5 - Developing Your Trading Style or Plan

  • This takes the most time and, as  mentioned above, works in tandem with Step 4 because as your plan changes so will your indicators and as your indicators change so will your plan.  There are no "magic" formulas or shortcuts.  I don't want to scare you but this takes some work on your part.  For me, it was fun, I love this kind of stuff.  Figuring out how different indicators work and how they can be effective it determining when to buy or sell was what I would call enjoyable work, I looked forward to trying new ideas.  This is also where this site and myself come into play.  We have all the videos on all the indicators in the Learning Center to assist you and you have something I never did - someone to bounce your ideas off of, I will always be here to answer any questions you have at almost any time