Making your First Trade!
The first trade you make is very intimidating to many as we are
risking our hard earned money into something that we don’t have excessive
experience in. This is a normal feeling as
I have talked too many of my friends in an attempt to get them to invest their
money but they are very timid and even afraid of the stock market. I felt the same way before I dove right in
and made my first trade but after a few weeks and I was starting to see my
money make me money the nerves where relived.
I am still holding the full position of my first trade and I am up
roughly 65% on that trade, I am very happy with that return and don’t have any plans
to sell my position any time soon.
I have always been an avid saver I wanted to invest some of
the money I had saved and make a return as savings accounts get next to nothing
these days. I took initiative into my
own hands did my research and executed the trade with success. I currently enjoy watching a trading in the
stock market I do it as a hobby now and have enjoyed every minute.
Investing in the markets didn’t come over night I had to do a
lot of things such as save money so that I would be able to invest. I have noticed that it can be very difficult
for people to save money as it takes great discipline.
Once I had the money saved up I knew I needed to do
something with it as I had no intentions to touch it until after college to make
a down-payment to buy a house. A savings
account is a very safe place to keep money but it will just sit and sit with
little to no return. I wanted to put my money to work so I knew I had to do
something else. I’ve watch the stock
market for years and I then took what I have learned a put it into my stock
trading account and made my first trade.
Begging steps:
Save Money: One of the most difficult things, but you
must have money to do but is necessary if you want to be able to invest in the
stock market. I feel that with the broker
fee’s a trade of $800 or less doesn’t make much since as you would have to make
up to much of a percentage right at the beginning to make a profit.
Research: Look into the companies that you think
you would like to invest in. Balance sheets,
cash flows, and some analysis expectations can help you making your decisions. Check out my post about Seeking Alpha a Very
Useful Resource. I use Seeking alpha
sometimes to see what articles and opinions that they might have on the
stock. Seeking Alpha is not the only resource
I use I look around and try to become as educated as possible.
Fund Account: Online trading brokers have made it as
easy as ever to trade stocks. Look for
what one best fits your needs. I have
posted some recourse’s on different online stock brokers; Getting Started
Trading and TD Ameritrade and ShareBuilder Reviews.
Purchase of
Stock: Congratulations you have made
the purchase and got that stock. You
might be nervous but if you did your research everything will fall right into
place and you should start seeing a return.
Sell of Stock: It is just as easy as the purchase but
now you can take those profits. It can
be hard to sell a stock as many people fall in love with the stock. Don’t get a biased opinion just because you
own it if you have made a decent return be happy and sell if the timing is
right. You don’t want to hold onto the
stock watch it go up and then go down thus you losing money.
Start the Research Over
Again: If you did it once you can do
it again. The research processes is the
most dreadful part of trading. It is
boring, time consuming and difficult but making money never gets old no matter
who you are. Do your research and you
can make money more times than not.
Trading stock is a great thing for everyone to have knowledge
on regardless of career. The stock
market has given investors proven return over the long run and has helped many people
retire happily so don’t be scared it is not as bad as the novice might first assume. With new technologies of the online broker it
is easy to buy and sell your position you can even do it right over your smart
phone if you would like.
The trait of trading is very rewarding and fun I plan on
doing it for the rest of my life but I have made a few mistakes along the way
and I hope to give you the information so you don’t have to learn the hard way
that many investors had to do along the way.
Check out the post that I have links on my pages; 60 Stock Tips for
Investors and Tips for Investing in Stocks.
I hope I have educated and motivated you to make your first
trade in the market it will probably be the most nerve racking one you ever
do. You might lose some money along the
way on a trade from time to time but cut losses quick and enjoy those trades
that you do make money.
Thank you for reading The Wall Stock Journal and I hope you
learn from this page. If you have any
questions or concerns please feel free to email me or leave a comment I want to
keep an open contact with my readers and I hope we can build a community of
investors and traders that we can all learn from each other to make some money.
