I first got interested in and wanted to learn about stock market trading when I was twelve years old.  The first two stock buys were Union Oil of California and Sears Roebuck department stores.  These were the only companies that I knew truly well since that is where my family bought our gasoline and shopped for almost everything else.  My stock market trading you must understand was only on paper, I simply wanted to learn about stock market trading in general and about the different trading strategies.  However, fifteen years later, I became a licensed stockbroker for real and from then on my stock market trading has been using my ideas and other people's (my clients) money.

The first and number one rule I learned as a professional was the same rule I happened on when I was twelve; in your stock market trading, only invest your money in companies that you know and understand. I understood Union Oil.  The gas station was right down the street from my house. Everyone knew my mother and father there. When they gave away free calendars every year, they saved one for us. I knew and liked the company.  That is the best rule to follow when you enter the beginner stock market trading field.

How many billions of dollars did ordinary people lose in their stock market trading during the late 1990's when they did stock buys in companies that they had no idea about?  They heard the word Internet and they bought regardless if the company's business plan made any sense.  That is not stock market trading.  That is not even sensible gambling. If you take my advice and only invest in companies you know you will be able to learn about stock market trading and trading strategies without suffering the same fate of those people.

Stock market trading can be both profitable and enjoyable if you know what you are doing and how to do it.  Stock market trading is not brain surgery.  It is 80% common sense and 20% educating yourself. The most successful and profitable traders I have known over the years were individuals that followed no one else's opinion but listened to everyone else's stock market report and everyone else’s stock market quotes.  Stock market trading rumour is not what I am talking about.  I mean facts from people with status.

The big winners used their heads.  Made the stock buys and sells that they thought made sense and most importantly, in their stock market trading, they only invested in companies that they understood.  If they felt that the company's idea might make sense but they did not fully understand it, they educated themselves by finding out the facts.

Stock market trading is no more difficult than any other moneymaking proposition and these days it is easier than ever with the new stock trading systems that make it possible to do stock online trading.  However, with all business ventures you always must know what you are doing. If you do not understand the game, do not play.  The same applies to your stock market trading.

Editors Comment:

I hope you found this article about Stock market trading helpful. With the new stock trading systems that allow you to do stock online trading things are definitely easier but that obviously won’t make any deferent’s to the advice this article gives, so if you are interested in entering the beginner stock market trading field why don’t you spend some time first studying companies that you know and see how there stock fares over time, you can start to do stock buys and sells on paper and in no time your start to see your self coming out on top most of the time, only then will you be truly ready to start stock market trading for real.