Technical Analysis homework

[teapeebubbles]

By saying "do paper trades", It means this:

Start doing your research, frequent traders boards who seem to have something to offer. Identify companies whose stock you might consider trading. Then research the heck out of those firms (I would recommend you stay away from penny stocks as others have recommended. Often there is little hard data on such companies and even more often what data is available is unreliable).

Then decide what you want to trade. Are you going to swing trade? Are you going to day trade? (Note: If you don't know what these terms mean, my following advice is even more important).

NOW .... execute your trades on paper. What this means is write them down on paper next to your computer. DO NOT log in to your online brokerage account. DO NOT call your broker. DO NOT actually purchase, sell, short, or option any stock. JUST WRITE IT DOWN ON A PIECE OF PAPER NEXT TO YOUR COMPUTER. Continue trading your selected stocks this way (on paper next to your computer), keeping track of what you are making (or losing) on each trade. See ... now you are learning! And you haven't lost a plug nickle yet, even though you are getting an education.

Continue doing this for as long as it takes. Believe me, you will start off losing money (on paper). Keep doing this until you start making money (on paper) and feel confident in what you are doing.

Now ... try the real deal. DO NOT risk a lot of $$ starting off. Only risk what you can afford to lose. If you do lose, go back to paper trading until you get better. You may end up only paper trading for months until you understand what you are doing. GOOD!! You don't want to risk real $$ until you REALLY understand what you are doing. Until then, leave your $$ in a savings account.

Otherwise, you may as well go to Vegas or flush your $$ down the toilet.