Stock Market Strategies - Practice Before You Jump
There are tons of stock market strategies out there, but the reality is that the best strategy for you depends on several factors including the risk you're prepared to take, your financial goals and what kinds of stocks you're most interested in. For folks just getting started, one great tip is to a practice run before you put really money at stake.
The process is very simple. You'll do everything the same way you would if you were investing - except for putting your money into the market. First, you'll do your research. There's a variety of ways to compile information about the best buys out there. There are tons of financial journals, some simple enough for beginners to understand and some more complicated that are geared towards the pros. You might also pay attention to the chatter on the internet message boards and the financial news networks.
Once you have a few stocks in mind, you'll want to research the companies further. Going directly to their website and looking into their past, present and projected future is a good option. You can also check back issues online of papers that have run stories about them in the past. You'll then create a spreadsheet indicating exactly how much you would buy today and how much it would cost you.
Every day you'll make a note of the stock price and adjust your spreadsheet. After a few weeks you'll get an idea of how well you would have performed if it were real money you were playing with. This is a great way to get used to ups and downs and realize that things do tend to even out eventually. If you practice this with several different stock market strategies you'll soon know which one is the best for you.
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