How do you trade stock?

Answer 1

In the beginning \"newbie\" traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money. In the beginning you LEARN HOW: A] the Stock Market works. B] to invest in many, many various ways. C] to properly trade D] many other concepts and aspects. Beginning or novice ['newbies\"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes. In the very beginning, you READ AND LEARN about the market and how it works: Read trading books written just for beginners. As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. Use that book's glossary or do an on-line search. It probably won't be long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. There are free, paper trading platforms; you can set up a virtual account and almost trade as though you were trading with real money. The thought processes are: 1] to have more successful trades than failing trades. 2] to minimize the losses of those losing trades. 3] \"To live to trade another day.\" Having enough money in the trading account to return to the market. ALL this is accomplished by a few true expressions used on Wall Street: Some trading expressions come to mind: A] "On Wall Street there aren't any gifts." No one gives anyone else anything - not even stock tips. B] BUlls [BUyers] earn money. BEars [SEllers] earn money. Pigs get fat. Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts. C] \"Trees don't grow to Heaven. Neither do stocks or any other investments.\" In other words: What goes up, MUST come down! D] "Plan your trade. THEN trade your plan!" Have a trading plan with rules for that plan for each strategy.

Answer 2

The easiest way is to get set up on a site such as "Etrade.com". The hard way is to get a private broker. Either way, once you're set up, it's pretty much a game of buy low, sell high. People buy stocks when they see the price has shown a positive trend. If you own those given stocks, the profit from the sale is yours. There are many many methods for this, along with a large gamut of market theories and such. Some make it, some don't.