Stock Trading 101
This beginner s guide to online stock trading will walk you through the process of choosing a discount broker, the twelve types of stock trades you can make, how to select individual stocks, uncovering hidden fees, expenses, and commissions, and much more. Think of it as your ultimate reference guide to stock trading and the next step in your education after you ve read The Complete Beginner s Guide to Investing in Stock.
If you haven t already opened a brokerage account with a respected stock broker, there s no point in reading any further. Instead, you should take a moment to go through our guide to choosing a stock broker. It will help you open an account so you can begin trading stocks. Once you ve done that, you can come back here and continue with the Stock Trading Guide. Find out how to open a brokerage account with a stock broker . More
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The 12 Types of Trades You Can Place with a Stock Broker
There are twelve types of trades available when you start online stock trading. These include the market trade, limit trade, stop loss, day orders, good-till-canceled trades, trailing stops, bracket trades, and more. In a few minutes, you can walk through this step-by-step guide to stock trading and find a definition and example for each of these terms that you may have heard but were always too afraid or embarrassed to ask what they meant. Learn the twelve types of trades that are available to you when investing in stocks . More
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How to Avoid Frictional Expenses That Can Destroy Your Stock Trading Profits
The biggest enemy of successful stock trading is something Warren Buffett calls frictional expenses. They represent money you are shredding without any benefit to you. What are frictional expenses? How can you avoid them? Discover the answer so you can become a better stock trader . More
How to Trade Stock on Margin with Borrowed Money
If your stock trading brokerage account is for speculation and you want to roll the dice, you can actually borrow money from your brokerage firm. Known as trading on margin, using borrowed money, you can often leverage your positions up to 3-1 in certain situations. This approach to trading stocks has some big potential pitfalls against which you need to guard your money. Find out how to borrow money on margin to trade stocks . More
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How to Short Stock
Once you have been approved for margin stock trading, you are also eligible to short stock. Although they are often criticized in the press, almost every successful stock trader has shorted stock at one time or another. When you short stock, you make money when the company s shares fall (or, better yet, crash). The problem is you may expose yourself to unlimited liability. Find out how you can begin shorting stock in your brokerage account . More
Using ADRs to Trade Foreign Stocks in the United States
If you are interested in stock trading and want to buy or sell shares of foreign companies, it may be possible right here at home if the corporation has ADRs, or American Depository Receipts. It s fairly simple to find out if a business has them and how they are different from regular stock.
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The Role of Market Makers in Stock Trading
Without market makers, stock trading wouldn t even be possible. Every time you buy or sell stock, the odds are good that your order is going through a market maker on one of the stock exchanges or through a major investment bank. Learn the important role these specialists play in ensuring an orderly market . More
Stock Trading and the Investment Bank
Now that you ve learned about market markers and the role they play in stock trading, it s time to go one step further and introduce you to the investment bank. If you are extremely wealthy, you may trade directly with an investment bank. Otherwise, your stock broker trades on your behalf through an investment bank, whether you realize it or not. Understand how investment banks make trading stocks possible . More
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Avoid the Dreaded Wash Sale Rule on Your Stock Trading Activities!
If you trade stock regularly, you may find yourself accidentally violating the dreaded wash sale rule, costing you huge tax penalties. With a little planning, you can avoid this fate and still enjoy trading stocks aggressively. Find out how to avoid triggering the wash sale rule . More
How The Length of Time You Trade Stocks Can Change Your Tax Bill
If you are an active stock trader, then you need to know the tax rules for each of your positions. The shorter the time period you hold a stock, the higher the tax you will pay to the IRS. This was designed to encourage long-term investing over short term speculating. Find out what the rules are and if your rapid stock trading is costing you more in taxes . More
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Trading Stock Strategy Guide
Now that you ve learned the basics of stock trading, you need to get into the specific ways you can make money. The trading stock strategy guide is a collection of articles explaining real-life techniques you can use to begin trading stocks. You ll learn how investors like Warren Buffett lower their cost basis through using stock options, how other stock traders make money by anticipating dividend changes and much more. Take the next step and read the trading stock strategy guide . More