Stock trading for complete beginners

Tabraiz

Hi Friends

I am new to this forum and this is my first post. I was hoping to get some insight into this, I have been looking on the internet for a while now with no proper answer.

I have plans to start investing in Stocks. I can understand the basics and risks involved in trading. There are quite a few videos that give a lot of information on types of asset classes, stocks, investments, etc.etc...

I have even gone and created a free demo account on a popular Stockbroker website but I am unable to wrap my head around jargon like order level, size, type, limit, stop... Is there a source that will teach me how to understand these and actually start buying stocks, like a demo on placing stock buying/selling orders? Any help would be much appreciated.

Cheers!
Tab.

Pincher

I think you are really after a day trader forum.

Check out the Share Chat on

http://www.lse.co.uk/SharePrice.asp?shareprice=HSBA&share=hsbc

If you find a forum where CFA Level III professionals swap tips, do come back and tell us.

https://www.cfainstitute.org/Pages/index.aspx/

Linton

I trust you are aware that there are two main approaches to investing in shares....
1) Trading - Frequent buying and selling of individual shares, probably UK shares, in the hope of gaining from the short term ups and downs of the stock market.

2) Buy and hold - Infrequent buying of shares, probably via funds, from across the world with the intention of holding for the long term gaining from the general upward movement of the world economy or its individual sectors.

The general view on this forum is that (2) is likely to provide the better long term returns and is the more appropriate for the general private investor. (1) can lose you more money more quickly if you are inexperienced and requires much more effort.

EdGasket

Get a book or two out of the library on beginners guide to the stockmarket and read them (or if you are 'loaded' just buy the books).

paddyrg

Be aware that day trading is basically gambling. The 'house percentage' is that each transaction will make the broker a fee

BananaRepublic

I suggest you first spend a few months doing imaginary trading, and see how your imaginary portfolio fares. Then let your imaginary friends (us) know how you get on.

I know someone who lost £20,000 on shares. Fortunately (?) it was his wife's money .... and ten years later she still does not know.

Tabraiz

Thanks guys, LSE.co.uk has good rates. Found a couple of brokers that provide demo accounts, I am gonna check them out tonight.

bigfreddiel

This should be interesting........

bulltraderpt

paddyrg wrote: »

Be aware that day trading is basically gambling. The 'house percentage' is that each transaction will make the broker a fee

I completely disagree. Why people think day trading is 'gambling' is beyond me.

However you do need to understand the strategies you are going to employ, your position sizing and most importantly, your psychology inside and out.

In today's world you can buy and sell a position for £10 and even less with one specific on line broker.

Day trading requires you to get use to hours of boredom waiting for specific news / entries to set up or prices to hit a perceived value buy area.

You've got to love looking at charts all day, or at least put in the screen time to be able to get up to speed with what's happening in the markets, or at least within your area, which you will come to know and love, inside out.

EdGasket

bulltraderpt wrote: »

I completely disagree. Why people think day trading is 'gambling' is beyond me.

If you think it is anything else you are deluding yourself and getting confused by various 'analysis' and data weighting. Don't you think all the investment houses have much more resources to throw at this than an individual? If you come out on top day trading you are just plain lucky for now.

The reason why it is gambling is because price movements are completely random short-term. It is only long-term investment that is likely to produce overall positive returns and hence anything else IS gambling.

HouseBuyer77

I completely disagree. Why people think day trading is 'gambling' is beyond me.

Someone particular clever, with a good knowledge of statistics, may be able to make a decent profit of gambling on sports. This doesn't mean it isn't gambling.

So it is with the stock market.