Stock Market Basics

Before you begin trading, it is very important to learn the stock market basics. Like many, when I began trading I didn’t take enough time learning the basics. I thought I would be okay diving straight in.

This resulted in me being confused and caused me to lose money. One of my favorite phrases can be applied to trading stocks. Failing to prepare is preparing to fail.

You will undoubtedly make mistakes while you are still learning. It is natural, but one thing that has greatly helped me to succeed is to do my best to never make the same mistake twice.

I have written many articles on the stock market basics that I feel would have helped me when I started trading stocks.

How to find a stock broker that is right for you
A guide to finding the right stock broker for your trading. Looks at how to avoid the con men in suits!

What is stock trading?
This article looks at what stock trading is and how buying and sell stocks takes place.

Stock Broker Commissions and Fees
Do stock trading commissions and fees really make that much difference to your bottom line when trading?

What are growth stocks?
Earn higher returns with growth stocks, but take on extra risk.

What are blue chip stocks?
Blue chip stocks are the safest stocks traded on the stock market, but they won’t make you rich any time soon.

Stock Market Hours
Do you know when the American stock exchange opens and closes for business?

After Hours Stock Trading
After hours trading can mean more volatility but also more risk.

What are dividends?
Did you know that dividends are often paid out by large well established companies and not by smaller rapidly growing companies?

How To Trade Stocks Commission Free
Trade without paying commissions with DRIPS and oneshare.com

Stock Market Risk
A true look at the stock market risk. Offers help choosing a suitable strategy for you.

Short selling stock
Did you know you can profit when a company’s stock price falls by shorting stocks?

What is the difference between stocks and bonds?
Learn the difference between these two financial instruments.

What is a Stock Split?
What are stock splits and why are they done.

What is an IPO?
IPO stand for Initial Public Offering, trading them can very risk but can be rewarding.

What is the difference between common stock and preferred stock?
Common stock offers a greater opportunity for a better return, but they are riskier than preferred stock.

How to Read Stock Charts
Learning to read stock charts correctly is an important aspect of trading. Find out how to correctly read stock charts

Stock Trading Terms
A look at some of the common stock trading terms and an easy to understand explanation. Don’t get lost in the jargon!

Should you invest idle cash?
Do you have spare cash and unsure whether or not to invest it?

How To Invest Your Money At a Young Age
Did you know you can probably retire earlier than most by investing conservatively from a young age?

I hope you find the articles helpful. Some of the common mistakes you need to try and avoid are:

  • Trading a real money account before you are ready.
  • Trading on emotions rather than logic.
  • Being greedy by not closing trades soon enough.
  • Thinking you can make significant amounts of money with a small account size.
  • Not using stop losses.
  • Not spending enough time choosing the right stock broker and paying too much for trading.

These are some of the mistakes made by traders, especially new traders. Armed with this knowledge, you can do your best to avoid them.

If you would like to read more about stock trading, we have a stock trading tutorial part to the site.

Or if you feel you are ready to begin buying stocks and want to find a broker, check out the discount stock brokers page.