Stock Trading for Beginners

Stock Market Beginners Guide  

A newbies manual to making money through investing does not end up being complex or

complicated to comprehend. And yet, it will definitely make the verdict to make an investment a little bit faster and easier and supply a fundamental understanding of what everything is when you decide to invest your funds.

Does your concept of trading include an classic coffee can with a crack in the lid or a lovable tiny piggy-bank which oinks anytime you pop in a coin?  That is a great strategy when you are young, but now that you are older and wiser it is time to step up to the big boy league.

Investing Not Resting

To start with, the piggy-bank is a method of saving dollars, not investing dollars.  Saving cash signifies you allow money to amass by one's own fingers; easily put, you make it and put it aside.  There is certainly not a thing unethical with that.  Way too many of us do not have enough savings just from a piggy bank, however if you wish to seriously make your finances grow, you have to invest it.  That is, invest your funds in places where it will increase even without your having to bust your butt to add more funds to it.  This is the big difference between saving and investing your money.  Funds in savings collects while funds invested is “put to work” for you and makes more money for you. Any time you make an investment in the stock market, you happen to be actually buying a tiny portion, or share, of a number of companies.

Options Trading

Why just let your money sit when it can work for you.  With 15 minutes a week you can significantly increase the returns on your money by trading stocks instead of letting your money sit.  If you have the time or desire to want to learn how to make the most in the stock market, look into options trading.  Options trading is very confusing at first, but once you learn options trading, your life will be changed and you will wonder why you ever traded stock.

Stock Market Tops Out

Stock Market Swing Trading Option Strategies

With the stock market at all time highs with the look of a head and shoulders pattern setting up in the SPX, it is a perfect swing trading opportunity to go short.  Trading options is the preferred swing trading strategy over trading stocks because of the smaller amount of margin required for trades.  At these levels I would only be day trading to the short side.

  

Stock Market Day Trading Strategies

Futures and Options Swing Trading

Day trading the stock market can be very nerve racking if you do not follow simple day trading strategies.  Use the previous days price action as your guide.  Focus on the price action around the previous days high and low to determine the tone of the market.  If the price action reverses around these levels,  an intraday trading strategy would be to play the price action reversal looking for a move back to the value area.

Best Day Trading Indicator

My favorite day trading indicator to use is the $TICKS.  The TICKS represent the summation of price movement for an indice for every issue in the indice.

As you can see the TICKS revolve around the zero line in the middle and 99% of the time stay between +1000 and -1000 dashed lines.  When the bodies of the candlesticks are below the zero line, it is more then likely a down trending day and the perfect day trading opportunity to go short.  On the other side of the line, if the candlestick bodies are above the zero lines, then more then likely it is an up trending day providing a day trading opportunity to go long.  When the candlesticks are both positive and negative, option strategies with a more delta neutral bias are going to be my choice.

Trading Software

Below is a video of the trading software.   This chart group represents the overall tone of the major market indexes.  These charts influence all day trading, swing trading, intraday trading, of futures and options, as well as stocks.  Also if you are into forex, there is a great forex trading system for you.