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Friday, December 4, 2009

In Case You Are A Newbie Then Do Learn How To Trade Stocks

By Lupie Gonzales

If you wish to learn how to trade stocks and make good profits be sure to understand that this is an activity that does not allow beginners (by and large) to succeed until they have become experienced enough to understand the ins and outs of the industry.

Furthermore, today, a lot more information is available about companies listed on the stock exchanges and this means that with some research it becomes possible to judge the merits and demerits of these companies. Once you get to know how a company is performing and also how it will perform in the future you then have a better chance of entering into a profitable trade.

When it comes to learning how to trade stocks you will also do well to understand that by buying stocks in a company you are in effect becoming part owner of the company. Therefore buying stocks in companies that are expected to do well in the future will help you earn money as the better the company performs the higher its stock prices will rise. This means that you only need to learn how to buy when the prices are low and sell when the prices are sufficiently high.

For traders that are willing to take risks there are many good and volatile company stocks that you can think of trading in and which will give you quicker and more significant gains. Google is a very good example of a good solid and volatile stock. Of course, if you are even more carefree about the type of stocks you want to trade in and your appetite to bear risks is even more then you can consider trading in Penny Stocks that can help you earn the best returns and also the biggest losses.

When it comes to making profitable trades in the stock market you should learn to differentiate between stocks with a ticker assigned to them and those that do not have these tickers. A ticker or a trading symbol allow you to remember a stock and can be considered the company's DNA. Knowing a stock's ticker means that you can find out more information about the company and its stock and then you can decide whether or not to trade in it.

If you want to trade in stocks you will need to choose from among the leading American stock exchanges including the American Stock Exchange, the Nasdaq Stock Market, the New York Stock Exchange, the Pacific Exchange and the Philadelphia Exchange.

These stock exchanges are good places to trade in stocks and they will also help you get information on stock trading as well as in making general investments. These stock exchanges also, from time to time, will give some free seminars on how to trade in stocks and also how to succeed in investing your money.

These stock exchanges are all controlled by the US Stock and Exchange Commission that is a watch dog as well as regulator of the entire securities industry in the United States. In addition, it also provides programs that help in educating investors about among other things learning how to trade stocks. - 23159

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