If you’re a new investor in the stock market, remember that even the most experienced traders were once newbies themselves. If you’re a new investor and wondering where to start, here are some answers to your questions.

I’m A New Investor. What are the 10 Commandments of Investing?

  • Setting Goals: Figure out what you want to do via an investing strategy and the best way to do it.
  • Get Your Finances in Order: It makes no sense to invest if you’re in considerable, high interest credit card and similar, non-tax-deductible debt. Pay down your bills and then get serious about becoming a new stock investor.
  • Educate Yourself: Do your research and learn about a security’s financials.
  • Don’t Follow the Herd: Get your information from trusted resources with a strong track record in all kinds of markets.
  • Avoid Overconfidence: Especially in a bull market. When the market is soaring, everybody’s a stock-picking genius. When stocks head into bear territory, that’s when an investor’s true ability shows.
  • Patience Is a Virtue: Over time, stock market returns exceed most other types of investments. That’s decades, not a five-year plan.
  • Don’t Put all Your Eggs in One Basket: This adage holds true whether it is one stock in particular or if every cent you have is in the market. Diversification is necessary because you will experience losses in the market at some point.
  • Don’t Over-Monitor Your Longer-Term Investments: It’s the perfect way to sell at the wrong time.
  • Calculate Your Risks: If you’re truly risk averse, the stock market isn’t for you. Accept a moderate level of risk and you’ll do well. Go overboard, and you’re likely to fail.
  • Don’t Be a Copycat: There’s nothing wrong with learning the investing strategies of the legendary stock pickers. However, it makes no sense to simply trade the way you think these people do if you don’t thoroughly understand the underlying fundamentals or strategy of a particular sector.

What is the Concept of Compounding?

Compounding involves the reinvestment of stock earnings, and is the major component of a long-term investing strategy. As a new stock investor, let’s say you invest $10k in Company A. If your shares rise 10% the first year, they are now worth $11k. If the shares rise another 10% the second year, they are now worth $12,100. Of course, share prices decline as well, but over time reinvested earnings – and often dividends – lead to true wealth. It’s a matter of having the patience to get rich slowly.

What are the Types of Investments a Day Trader Can Make?

By definition, day traders do not make long-term investments. They buy and sell securities in intraday trading, or within a 24 hour period. Day traders are not limited to simply trading stocks. They may also trade currencies, bonds, indexes, Exchange Traded Funds (ETFs) and commodities.

How Technology Has Changed and How You Can Benefit from It

Advanced technology continues to change the way investing takes place. Day traders have access to the most sophisticated trading tools via top trading platforms. SureTrader not only offers an intuitive, state-of-the-art, robust trading platform, but includes a demo trader, ideal for new stock investors.

Learn various types of trading strategies and how to use charting and technical analysis while performing “paper” trades. Use the demo to assess strengths and weaknesses before actually trading with your own funds.

New To Investing, New Investor

New To Investing?

If you’re a new investor in the stock market, remember that even the most experienced traders were once newbies themselves. If you’re a new investor and wondering where to start, here are some answers to your questions.

I’m A New Investor. What are the 10 Commandments of Investing?

  • Setting Goals: Figure out what you want to do via an investing strategy and the best way to do it.
  • Get Your Finances in Order: It makes no sense to invest if you’re in considerable, high interest credit card and similar, non-tax-deductible debt. Pay down your bills and then get serious about becoming a new stock investor.
  • Educate Yourself: Do your research and learn about a security’s financials.
  • Don’t Follow the Herd: Get your information from trusted resources with a strong track record in all kinds of markets.
  • Avoid Overconfidence: Especially in a bull market. When the market is soaring, everybody’s a stock-picking genius. When stocks head into bear territory, that’s when an investor’s true ability shows.
  • Patience Is a Virtue: Over time, stock market returns exceed most other types of investments. That’s decades, not a five-year plan.
  • Don’t Put all Your Eggs in One Basket: This adage holds true whether it is one stock in particular or if every cent you have is in the market. Diversification is necessary because you will experience losses in the market at some point.
  • Don’t Over-Monitor Your Longer-Term Investments: It’s the perfect way to sell at the wrong time.
  • Calculate Your Risks: If you’re truly risk averse, the stock market isn’t for you. Accept a moderate level of risk and you’ll do well. Go overboard, and you’re likely to fail.
  • Don’t Be a Copycat: There’s nothing wrong with learning the investing strategies of the legendary stock pickers. However, it makes no sense to simply trade the way you think these people do if you don’t thoroughly understand the underlying fundamentals or strategy of a particular sector.

What is the Concept of Compounding?

Compounding involves the reinvestment of stock earnings, and is the major component of a long-term investing strategy. As a new stock investor, let’s say you invest $10k in Company A. If your shares rise 10% the first year, they are now worth $11k. If the shares rise another 10% the second year, they are now worth $12,100. Of course, share prices decline as well, but over time reinvested earnings – and often dividends – lead to true wealth. It’s a matter of having the patience to get rich slowly.

What are the Types of Investments a Day Trader Can Make?

By definition, day traders do not make long-term investments. They buy and sell securities in intraday trading, or within a 24 hour period. Day traders are not limited to simply trading stocks. They may also trade currencies, bonds, indexes, Exchange Traded Funds (ETFs) and commodities.

How Technology Has Changed and How You Can Benefit from It

Advanced technology continues to change the way investing takes place. Day traders have access to the most sophisticated trading tools via top trading platforms. SureTrader not only offers an intuitive, state-of-the-art, robust trading platform, but includes a demo trader, ideal for new stock investors.

Learn various types of trading strategies and how to use charting and technical analysis while performing “paper” trades. Use the demo to assess strengths and weaknesses before actually trading with your own funds.

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