Stock Trading Internet Basics
We have all received them. Those stock tips from a co-worker, friend or family member about a stock that is certain to go through the roof in a matter of days. You wonder whether you should plunk down that $1,000 you had been saving for a new washer and dryer. You convince yourself to do so, saying to yourself that if the tip turns out to be true, not only will you have enough for the washer and dryer, but for that new camcorder and the trip to Hawaii you had promised to your wife. Making money investing can’t be that difficult can it? Stock Trading Internet Basics will lead you on your way to prosperity.
You open up an Etrade trading account and purchase that can’t miss stock. Within a week, not only do you NOT have enough for the camcorder and the trip to Hawaii, but you squandered the money saved for your new appliances. Your $1,000 account is now worth $183.45. What happened, you ask yourself? Your stock guru contact seemed so solidly confident about his recommendation. You have just learned one of the most valuable lessons when playing the stock market: There are no shortcuts to investing. You get out what you put in. Below are 5 of the most common mistakes new investors make when playing the stock market. Paying attention to these Stock Trading Internet Basics will help you in the long run.
1.) THERE IS NO SUCH THING AS “STOCK TIPS.” – Any person that comes at you with a “stock tip,” is either an inside trader (which is illegal), or simply passing on a hunch. Truth is that most of the information needed to research a company is on the web. I particularly like to use the Finance section of Yahoo.com. There, all the information you need is at your fingertips. Company summary, historical prices, company headlines, key statistics, competitors, analyst estimates and opinions, insider transactions, major holders, balance sheets, income statements, and company cash flow are all readily available for consumption. When it comes to making money investing, there is nothing wrong with a “hunch,” so as long as the hunch is based on solid research. Familiarize yourself with the terms listed above and find out how healthy or unhealthy a company is for you.