Today is November 05, 2010, and if you will take a look at the charts of any of the major exchanges or the indexes you will see a rather pretty sight from the perspective of a stock market trader, we are in a bull market phase and it looks like we should end the year, still two months away, at new highs for the year.

From a beginners viewpoint
As beginners, learning the stock market basics, that is important because we should be able to observe what can happen until then, and probably beyond, and see where money is being made and perhaps practice some paper trades and learn to make the right moves to become familiar with the steps involved in making trades.

Experience and skill in trading, once acquired, can provide a profitable source of income for years to come, whatever may happen in the markets. But there will be losses as well as wins, our objective is to keep our losses to within a margin of tolerance and let the profits run, and remember, in real trading life it is not a profit until it is sold!

So, let us together set a path to follow for the next 90 days that gives a good chance to see winning results that can be achieved by learning the stock market basics with just one set of routines out of the many that can be applied. This is the time to begin to build a foundation of stock market know-how from which to base future actions. First you have to know a little, then a little more, and a little more.

What do we need to do to establish a series of steps to learn the stock market basics?
Perhaps we should start by looking at a stock chart of the past 12 months — or for the last 6-month period — of any of the Dow, the Nasdaq, or the S&P 500.

All three charts will provide a similar picture, but I prefer the S&P 500, and that will bring up the first explanation in our “steps to learn the Stock Market Basics”, and that will be to say why the S&P 500 is the preferred index to follow, I can do that in the next post, together with some comments on what information can be seen on the chart.

We should also begin a number of paper trades that can follow and implement whatever we discuss in the “steps” mentioned above.

And I should also add a list of other items that we will need to know about in order to initiate the series of paper trades, one of which is to find out where to find promising stocks to trade and to add to a watch list.

We will certainly need to check out and get to know StockCharts.com, for the stock charts and Finance.Yahoo.com – where we can enter our trading portfolio that can be tracked in real-time by Yahoo – and also get quotes and news updates from Yahoo. There really is a lot of easy to learn material available, but one thing (or two) at a time. Let us start tomorrow.

Related posts:

  1. Starting Anew, A Simple Way to Use Stock Charts, Post No. 2 , November 07, 2010
  2. Update of Paper Trade of ASYS, Amtech Systems Inc., [Initiated November 18, 2010]
  3. On Learning Stock Market Basics, a General Suggestion
  4. A Stock Market Basics Learning Process
  5. Let the Simulated Trades Begin, the Next Step in Learning Stock Market Basics
  6. Stock Market 101 Basics – The Paper Trading Approach to Learning About the Stock Market
  7. Introducing Stock Market Basics as it Relates to the Beginning Trader

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