| I'm calling this article trading stock for smarties, not | | | | order. In both cases we were "bullish" and chose to |
| dummies because I want to illustrate to you the | | | | "go long" the stock. Our second example was a |
| stock trading does not have to be as difficult as you | | | | stock day trade because we opened and closed out |
| might think. | | | | our position all within the same trading day. Some |
| In fact, it can actually be quite simple but, of course, | | | | stock day traders place a much greater frequency of |
| you must follow a few basic rules. | | | | trades during the day. |
| If you've never traded stock before or have traded | | | | You can also see that in both examples we specified |
| unsuccessfully you have to realize that it's time for | | | | the quantity to be traded and also both examples |
| you to learn stock trading. Whether you're interested | | | | we closed our trades using that exact same quantity. |
| in online stock day trading training or you want to | | | | It's always important to keep this in mind and make |
| trade longer-term, there are tons of resources | | | | sure you are completely out of a trade when you |
| available online and offline to help you gain the | | | | want to be. What I mean by that is that when your |
| knowledge you need. | | | | trading method requires your position to be closed |
| Before we get into that let's chat a little bit about | | | | make sure that you close the trade using the same |
| what stock trading is. Trading and investing are terms | | | | quantity of stock as you opened the trade with...That |
| that are often used interchangeably. Investing is | | | | way you will not have any unwanted open positions |
| longer-term in nature. Trading stock is typically | | | | that may potentially move against you. |
| shorter term in nature and seeks to take advantage | | | | Something else that's important for you to keep in |
| of smaller market movements within the larger | | | | mind is that different types of stock trading will |
| trends. | | | | require different amounts of capital. For example, |
| Trading stock, means that you are taking a more | | | | opening a standard stock brokerage account can |
| active role than if you are investing in stock. Let's | | | | require as little as $500-$1000 to get you started. If, |
| look at an example of a very simple stock trade. | | | | however you find that you will frequently day trade |
| Buy 100 Shares Of XYZ Company at Monday's Open | | | | than your minimum may go up if you're classified as a |
| Sell 100 Shares Of XYZ Company at Friday's Close | | | | pattern daytrader. A pattern daytrader places four or |
| Please keep in mind that this is just a simplified | | | | more day trades in a rolling five-trading-day period, |
| example and not a suggestion of a trade for any | | | | stock brokerages will then require that you maintain a |
| security. The above example is of a very simple | | | | minimum balance of $25,000 in your account and this |
| trade that lasted for one week. Here's an example of | | | | may vary upward depending upon the online stock |
| stock day trading using the same fictitious company | | | | broker that you are using. |
| is above. | | | | So you can see trading stocks need not be mystical |
| Buy 100 Shares Of XYZ company at Monday's open | | | | or difficult as long as you keep the "trading stock for |
| Sell 100 Shares Of XYZ Company at Monday's close | | | | smarties" attitude in mind and continue to learn while |
| As you can see in both examples we open the trade | | | | you earn while keeping things as simple and |
| with a buy order and close the trade with a sell | | | | uncomplicated as possible. |