The Stock Market

• The stock market is a complicated entity; it is always changing and always evolving. No matter what you read or who you listen to, you are not going to be able to "time" the market. That is, you are not going to be able to predict the trends of the market; it simply fluctuates too much. Instead, you need to learn the "basics" of the market. This involves investing your money after thorough research and after you have accumulated savings that you can afford to lose.
  
  You have probably heard that you should buy low and sell high; however, if this were true and if everyone did it, then everyone would have success in the market. Do your best to follow this advice, but diversify your investments. Buy stocks when you can afford to buy them; free-financial-advice.net suggests buying stocks periodically, such as when you receive a paycheck. Sell some of your stocks when you need money, or when the stock looks like it is going to take a drop in price. There is no magic formula for what stocks to buy; it is a risk and you need to be willing to take in order to invest.
  
  

Trading Basics

• Trading stocks and buying stocks are two different forms of investing. When you trade stock, your ultimate goal is to try and capitalize on a short term gain of the stock. Basically, you are looking to trade stock that you have for stock that can quickly sell and make a small gain. The basics of trading involve learning capital preservation. This means that you must preserve what capital you have so that you can trade again. Do not look to "hit a home run," as tradingstocksguide.com puts it; instead, look for many small gains. This way you can absorb any small losses. Further, understand that the best way to learn is by doing it. When you do, keep a goal in mind. Be goal-oriented and, with some luck and a little skill, you can succeed as a trader.