Where your fortune is waiting

Sean BowerIt’s really no secret that fortunes are made every day in the stock market.

The problem is that most people are too scared to even give Wall Street a try. You miss 100% of the shots you don’t take, right?

The truth is that it doesn’t have to be difficult to get started, and I bet you’ll be amazed at how easy it quickly becomes. Here’s the right way to begin…

Let’s say that I’m a complete stock market novice- I’ve never traded or invested, I have no idea how to look at a stock chart, and I don’t even know how to place a trade even if I wanted to.

That situation is relatively common, so don’t worry if you can relate closely.

To get started, here’s exactly what I would do:

1. Learn the keywords
2. Sign up for a trading account
3. Organize my capital
4. Educate myself

Let’s get started with step 1…

Learn the Keywords

First things first, I can’t begin to understand the stock market if I don’t know what certain terms mean. Here are the most vital ones:

Ticker symbol – These are the codes used to identify different stocks. For example, Apple, Inc.’s ticker symbol is AAPL. The ticker symbols are used to look up stocks, place trades, etc.

Bull market – A bull market is simply when the stock market is ascending.

Bear market – When the market is descending.

Long – To be long on a certain stock means you think it will go up. When you buy shares of a stock, you are long on that stock because you’re betting on it to rise in price.

Short – Opposite of long, being short on a stock means you expect the price to fall. Short selling a stock means you make a profit if the price falls below your entry price.

S&P 500 – That’s short for Standard & Poor’s 500. The S&P 500 is a collection of a large variety of stocks and other securities that serve as a representation of the entire stock market. The S&P 500 index’s ticker symbol is SPX.

There are obviously plenty more terms, but those above are the most basic ones (and really the only ones you need in order to get started).

Sign Up for a Trading Account

This will help in two ways…

1. You’ll see how easy it is to sign up and gain access to Wall Street.
2. You’ll immediately begin immersing yourself in that world. And online brokers will supply you with many different learning tools to help you learn as you go.

Some of the most popular online brokers that offer trading accounts are OptionsXpress, TD Ameritrade, E*Trade, Scottrade, and several more.

Organize Capital

Here’s a very simple way to allocate capital:

Let’s say I’m starting out with $10,000. A good rule for beginners is to use roughly 1/10th of your capital on each position.

That will protect us from any bad trades or investments because even if 1 position loses big, only 1/10th of my capital would be affected.

So, at first I would invest roughly $1,000 into each new trade. If my capital expands to $2,000 after some good trades, I would then be able to allocate $2,000 per position.

Educate Myself

This is absolutely the most important step for any stock market beginner.

I would read as many good books about Wall Street as I could find. And even more vital would be to find a good source to learn about reading stock charts.

The beautiful thing about stock charts is that they tell you a story about particular stocks- a story that can give you amazing insight into what will happen next for that security.

And learning how to read those stock charts doesn’t have to be difficult either.

Here at The Midas Legacy, we’ve created a full course that could teach you how to beat the Wall Street pros in no time. The lessons of this course literally changed my life because I can now successfully take on Wall Street.

Start looking out for a special invitation to join Retirement Underground (coming soon).

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