How Do I Start Trading?

By Photokanok, published on 26 July 2013
Stock Photo - image ID: 100186685

The first thing to do to start trading is to set up an account with one of the online brokerage companies.  The most well-known are TD Ameritrade, E-Trade, Scott Trade and Charles Schwab.  I use Trade King because the commissions are low ($4.95) and you can call a broker to place a trade for you. The on-call brokers work magic, they can get your trade in better than your price sometimes. If you choose them let me know there's a referral program where we both can get $50.

For charts and analysis nothing beats Think or Swim. I have a TD Ameritrade account just for the Think or Swim paper money and for their Investools free classes. I don't trade on them however because their commission is $10, just for practice and info.

This will get you up and running.  The key however, is to practice before you trade.  Be sure to make use of the paper money trading tools.  This helps you to practice strategies and get used to the stress of pulling the trigger.  Your emotions will get the better of you if you let them so it's good to plan your entrance and exit strategies and to be disciplined.  

 

Chart Analysis 8-2-12

Here's a Facebook post from Investools Instructor Dave Johnson talking about the overall market movement.  He is pointing out that the market has broken through a resistance line and has gone back below it.  His belief is that the market will go back down to its support line and then back up to break out of its resistance line again.


An ascending triangle pattern is a potential trend continuation pattern that occurs in an uptrend that moves to a higher high, pulls back to a higher low, rises to a similar high and then pulls back to another higher low creating a horizontal resistance line and a rising support line. If the trend continues a breakout of the horizontal resistance occurs. In my experience, very often a breakout of resistance is followed by a pullback or test of the breakout where old resistance can become new support. This pullback test is common and can be expected on breakouts.

SPX Trending Up

From Investools Coach :

Michael Turvey, CFP(R), CMT

According to technical analysis principles the S&P 500 ($SPX) has been uptrending since early June, despite an almost daily flow of negative news. So here’s the question: are you trading what you see, or what you think/feel?