Solid foundations

[mp1983red]

Hello,

I am new to stock trading but wish to pursue it, eventually, as a main sourse of income. At this point, I have done a lot of reading (books, websites...) and will continue to do so. I believe it is important to get a fundimental understanding of the foundations of trading before jumping in the pool.

One question I do have is...when one sits at the breakfast table in the morning with the internet or a financial paper at their disposal with no pre concieved idea's of a potential stock...where would a successful trader begin?? Clearly, one cannot review every possible company as this would take forever...so how would one identify a certain number of companies that warrent further investigation??

If I rattled off every question I have, this thread would be a book so...aside from this question, if someone has any other advise for a noob...please feel free to put it out there.

Thanks in advance!! :smart:

 

[tomorton]

You're a broker?

 

[mp1983red]

No no...at this point i'm (in trading terms) nothing. I'm want to begin investing at some point (after I have done enough research). So, if you have any advice on a good broker...that would also be great!

 

[tomorton]

You need to form a rational picture of what you can do. Can you sit at a screen all day? - if 'No', then forget daytrading. Can you stand the stress of an open position over a three-day holiday weekend? - if 'No' then foget swing trading.

Find your style - an approach that suits your time, temperament, risk tolerance and pocket. Use simple strategies that are hard to screw up and can be easily backtested and repeated, and that can be enhanced with predictable outcomes.

Accept that this is a game of probabilities, you will take positions that go against you, that is not a mistake, its just that statistically the less probable things do occur and they cost you money. Money management is key - ensure your losers do not wipe you out before you learn how to maximise your winners.

Be patient, start small, become consistent, grow bigger. Survive.