How to Beat the Stock Market Game
- 1). Register for an online trading account. There are a wide range of sites, such as E-Trade, Sharebuilder, Charles Schwabb and many more that provide convenient trading tools for the amateur investor. Often, real-time trades cost as much as $9 a trade, sometimes less. If you are interested in getting involved in the Foreign Exchange Market there is also FOREX.com, which is a very popular site among day traders.
- 2). Spot irregular market activity by utilizing real-time statistics such as present trade quotes, price per share, trade volume and the market cap to inform yourself on current trends. Every online trade site has real-time statistics on stocks. Stay current on specific stock positions to familiarize you with market trends so when irregular activity occurs in the market, you will recognize it.
- 3). Compare current stock quotes with rates over the past weeks, months and years. If a stocks has a high trade volume with an expensive 52 week high but a very low price per share, then it means the stock is in decline but it could be due for a rally. Take note of trends like this when comparing old data with new information to make more informed decisions.
- 4). Invest for the long term. Corporations are more consistent as a whole overtime. If you spread your savings throughout multiple investments, bit by bit, over five to 10 years or longer, you will see a significant return on your investment.
- 5). Invest in five to 10 stocks you deduce have bright futures based on the previously mentioned criteria and you will have everything you need to setup a progressive portfolio.
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