| The stock market is not a place for the weak at | | | | also include how you will facilitate trades as well. Will |
| heart or the timid, especially right now. It is not a | | | | you use a broker? Will it be a full-service broker or a |
| learn-as-you-go process, nor is it a safe place for the | | | | discount brokerage house that you work with? |
| poorly prepared. You would not build a house without | | | | 3. Education. Even if you are working with a full |
| the right construction knowledge or the right tools, | | | | service brokerage house, you should have some |
| building a stock portfolio should be no different. | | | | knowledge of what stock and other market terms |
| Preparation, planning and education along with the | | | | mean. You should be able to understand the basics |
| essential trading equipment are the keys to making | | | | of a stock chart so that you can begin to track |
| you a successful trader. | | | | stock progress yourself. You should be able to tell |
| 1. Preparation. Before taking on the stock market, | | | | the difference between a penny stock and a more |
| you must take careful stock of your personal | | | | traditional stock. And you should always be aware of |
| finances. Budget an amount for investing, making | | | | how the market is trading- by volume, by price or by |
| sure that you know what your absolute limit is and | | | | other leading indicators. |
| not going over that amount. (Loss cap) Once you | | | | 4. The Essential trading equipment. For a first time |
| know about how much you can comfortably invest | | | | trader or a novice, a full service broker is probably |
| and potentially lose in the market, you can start | | | | about the most important aspect of your investing |
| working on the next step to successful trading. | | | | experience. Once you have gained some market |
| 2. Planning. You know your initial investment amount, | | | | knowledge and want to move to the lowered prices |
| now you should write out your clear and realistic | | | | of a discount broker you will want to add other |
| goals for what you would like to accomplish. Your | | | | equipment to your arsenal. That equipment should |
| plan should cover all angles, including what you would | | | | include, a good computer, a fast Internet connection, |
| do with your profit margins as they grow and what | | | | and excellent stock trading software. These items, |
| your exit plan will be if you do not invest wisely. An | | | | along with preparation, planning and education can |
| exit plan will keep you from sticking with a stock that | | | | make your trading experience more rewarding and |
| is either going to slow down to much to make it | | | | less risky. |
| worth keeping or completely fail. Your plan should | | | | |