102-28 How to Trade Stocks

 

In this section, we review a quick start checklist to help you organize the things you need to start investing in the stock market.

We then look at the practical side of stocks such as stock prices, stock splits, stop losses, and market order types.

Quick Start Checklist

To get started with trading in the stock market, there are several decisions you need to make. Below you will find a “Getting Started in the Stock Market Guide,” which will outline the potential choices to make and notes on the positives and negatives of the various options. This should lay the groundwork for a comprehensive approach to your trading.

  • Choosing an online broker
  • Using a stock screener
  • Charting Tools
  • Using a portfolio management system

 

1. Choosing an Online Broker.

There is a lot of competition out there today in the online broker space, and the commissions and services offered changed regularly. Here we will detail some of the critical things to look for.

Top 10 Best U.S: Stock Brokers Review
Top 10 Best U.S: Stock Brokers Review
  • Commission Charges – ensure that your broker is competitive (under $1 per trade, preferably free)
  • Real-Time Charting (should be free in the base package)
  • Access to news (preferably streaming news)
  • Access to level II quotes.
  • Stop Losses and Rules to enable you to place alerts and automated actions when you are away from the Office.
  • Original Market Research and Valuations
  • Compare the interest rate on the Cash Account.
  • Customer Service read online reviews of customers.

The Best US Brokers Review

2. Charting Tools

Top 10 Best Stock Market Trading Software Review
Read Our Top 10 Best Stock Market Trading Software Review

Charting tools enable you to view the history of a stock using mathematical visualizations of the price, volume, and various indicators. Choosing the right charting software for you can be very time consuming, but is well worth the time invested.

To fast track this decision-making process, the LiberatedStocktrader.com has completed an in-depth analysis of the best free internet stock charting software available and organized this in a side by side comparison. This is invaluable information and enables you to see what is essential in a charting package.

The critical choice for you is whether to use free internet stock charting packages or paid-for subscription-based software.

3. Using a Stock Screener

10 Best Stock Screeners
Best Stock Screener Review – 550 Data Points, 11 Stock Screeners Reviewed – 4 Winners, Make this the Webs Most Detailed Review.Yahoo vs Zacks vs FINVIZ vs MarketWatch vs MSN vs CNBC

Stock screeners enable you to filter all stocks by your requirements, such as Earning per Share or Profit Margins, etc. Finding the right Screener is an essential building block to successful trading.

The liberated Stock Trader conducted a Review of the Best Free Internet Stock Screeners available and performed a head to head comparison. This will save you a lot of time and effort in selecting one that is right for you. There are also Stock Screening and filtering options in “subscription-based” Charting Software Packages. For example, Telechart offers compelling screening capabilities.

4. Using a Portfolio Management System

Stock Rover, Our Favorite Portfolio Management & Stock Research Software
Stock Rover, Our Favorite Portfolio Management & Stock Research Software

Portfolio Management System’s enable you to enter a stock and a bought price and sold price. This will allow you to have the %gain and $ gain automatically calculated for you.

You mostly have three options to choose from.

  1. Free Portfolio Management Tools
  2. Online Brokers Portfolio Management Tools
  3. Tracking Manually with a Spreadsheet.

We have covered all the core essentials you need to set yourself up as a Stock Trader. The most important by far is to educate yourself and always think for yourself and be responsible for your own decisions.

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