Stock Trading Course – How to invest in the stock market

 

Learn stock trade trading and How to invest in the Stock Market

In this Stock market course you will learn how to invest in the stock market. This is a beginner’s guide on how to buy stock and how to trade stock with free tools available to everyone.

The stock trading articles listed in the blog are only to give you a basic idea of what to expect. If it sounds like something you are going to be interested in pursuing the one book that you absolutely must have is:

If you want to know how to invest in the stock market, This book and this book alone is why I have succeeded in the stock market.

I went from know practically nothing about stock trading to now earning thousands of dollars from my phone.


how to invest in stock market, stock trading course, stock market course

What if I told you there are people who wake up in the morning and make a few hundred to a few thousand dollars before they even finish their first cup of coffee. Afterwards, they are free to go about their day doing whatever they like because they’ve already made their daily earnings. Does that sound far fetched? I assure you that it isn’t. While it may not be the case for most people and I’m certain it won’t be the case for a beginner, you can still develop this skill set and improve upon it over time. Just like all athletes it takes motivation, training and repetition.

Do you have the motivation?
Only you can answer that. You can look at the stock market like an investigative journalist. One who is digging for clues and unearthing answers to solve the puzzle. This is called a fundamentalist trader.  You can look at the stock market like a video game. By watching the charts, charting the trend lines and seizing just the right opportunity like a game of pong. This is called Technical trader. A successful stock trader will be a combination of both. You need to be able to find the right stock at right time AND know what the driving factors are. There are several other factors to consider but these 2 are the most important because they will define ‘When to Buy and When to Sell’.
 



What has changed and why is this important now? Now, I’ll be honest with you, 5 years ago, this project wouldn’t be worth it. Every time you made a trade back then it cost you $10 to buy and $10 to sell and most trading platforms still do. So you essentially have to make a trade that would be OVER a $20 gain before you make any money. But now, with the help of Robinhood, all trades are FREE and there are no fees for anything. So there is absolutely no excuse, every American should have this app installed on their phone. It’s almost like a public service announcement. You can literally transfer $3 into it, buy one share of stock and sell next week for $5. All while maintaining control of your money with the ability to transfer it right back into your checking account. This may not seem like a lot but when you scale it up, it’s a big deal:

  • buy 10 @ $3 for $30 --- sell 10 @ $5 for $50 = $20 profit
  • buy 100 @ $3 for $300 --- sell 100 @ $5 for $500 = $200 profit
  • buy 1000 @ $3 for $3000 --- sell 1000 @ $5 for $5000 = $2000 profit

A few things to note about this is, for one, you don’t have to buy all your shares at once. You can buy a few today and a few tomorrow. They may even be at different prices and that’s okay. What you’ll end up with is an accumulation of shares and the price will average accordingly. So if you buy 100 shares at $2 and 100 shares at $1.80 you essentially have 200 shares at $1.90. This is called accumulation. Secondly, the more shares you can acquire of a single stock, the more your account will be affected by price movement. If you have 1000 shares of stock, every .01 cent the stock price moves, will be either a $10 gain or $10 loss. That is why you will see people hunting for good “Penny Stocks”, which is now considered anything under $5, but there are actually some decent stocks all the way down into the .50 cent range. Because if you can buy 10,000 shares of something for $5000 and every penny it moves is a $100 swing it can be very tempting. I don’t recommend doing this. The only reason I bring it up is to illustrate the power of the market and the potential it has. It is almost never a good idea to touch any stock that’s under $1 and be very skeptical if someone is trying to get you to buy a specific stock. There is nothing wrong with getting leads from people but always do your own research into the company for yourself.

how to invest in stock market, stock trading course, stock market course

What are stocks?

The easiest way to look at it is like this; Stocks are a small piece of ownership of a Company, so if you buy ‘1 share’ of stock in Sirius XM (SIRI), you are essentially a Business Owner because you just purchased a small percentage of that company. You can literally vote when they have a board meeting with your share of the company. Granted none of us will ever own enough to make a significant change in a company and that isn’t the goal here, it still represents ownership. Now, it’s also important to note that each company has a certain ‘number of shares’ on the market. That’s why you see some companies at a $5 per share and others at $100. Both companies may be great companies but chances are, the $5 per share company issued MORE shares so each share is worth less. This ‘number of shares issued’ is commonly referred too as “The Float” as in, how many shares are floating around out there. We will go over this in detail later but for now it’s just important to understand that the price per share does not equal the value of the company. It’s just the price per share. 

 

This has been an introductory article for beginners. But it is absolutely essential that you have this book before you begin stock trading: