Free Stock Tips

It doesn’t matter whether you trade online or via an offline stock broker, the rules are the same. In this article, I’ll give you three basic rules to follow before spending your first dollar in the stock market. If you’re going to stake your claim to the gold rush, you’ve got to know the rules.

Investment Capital

The first rule involves money, specifically your money. You may have heard that progress always involves risk. Notice the word “always.” It’s not sometimes, part of the time or never. It’s always.

As a non-breakable rule, you need to only invest money that you’re prepared to lose. Sure, you can’t see yourself losing any money and certainly not all of it, but you need to be prepared.

Let’s say you’re starting up an account with $5,000. If you invested tomorrow and somehow lost $5,000 within 24 hours, would you be able to still go on with life? If you’ve invested “bill money” then the answer is no.

Always Research

Throughout your stock investing journey, you’re going to watch TV, talk to friends, read the news and hear lots and lots of stock ideas and stock picks.

Rule number two is to always research everything no matter the source. It could be hot stock talk on CNBC, a hot stock tip from a friend who’s never been wrong or a juicy piece of news on someone’s blog. Always research the stock, always.

Get a Plan

Rule three is about planning. I’m not talking about long-term financial planning. I’m talking about developing a plan for selecting stocks, for getting and getting out. Never just invest in a stock and let the Market take you where it wants.

You need to always know what type of profit you’re looking for and when to stop the bleeding if things go south. You should have a plan for when to buy more shares of a stock and how.

Going from Here

There are many other rules to follow before you make the leap. There are tons of sites out there to help you and I’ll share one with you below. Don’t rush. Take your time, learn a little and give yourself a better chance of success.