Stock Trading for Beginners

 
If you think making money online by trading stocks and shares sounds like a good idea, then you are right, it is a good idea ! But turning that idea into reality is a little more complicated. You need to know at least the basics of how the stock market works and why you might  like to buy one share rather than another.

It is important to understand that the stock market is controlled by professionals, and you as a beginner are well-advised to follow what the professionals do rather than do the opposite in the belief that they may have got it wrong. You can see what the professionals are doing by looking at stock charts. Stock charts are a pictorial representation of the online stock trading behavior of crowds. They can be as complicated or as simple as you like to make them. For a beginner it is best to start with the easy stuff.

The most basic notion in stock charting is that of support and resistance. A stock will often move down to a certain level before turning round and rising again, if it repeats this several times, then the low price becomes known as the support level. The high point it reaches before turning round and coming back down again is known as the resistance level.

Stocks that move between a support level and a resistance level are said to be in a trend. With this type of stock you need to buy it when it reaches the low level (support) and sell it when it reaches the high level (resistance).  The aim is to make a quick short-term profit of around 7-10%. Once you have made your profit you sell the stock and look for something else, or wait for it tto fall back to its support level and buy it back again.