Actually, stock trading isn’t terribly difficult to understand. Here are the basics.

How Stocks Are Traded

The actual trading of stocks takes place at a stock exchange. The most familiar stock exchange for most Americans is the New York Stock Exchange. This is the place that we often see on the financial report on the news. It is full of traders working to facilitate smooth, quick transactions between buyers and sellers.

But not every stock exchange operates like the New York Stock Exchange. Today, many stock exchanges are operated electronically. The NASDAQ is one such exchange. It utilizes a computer network to match stock sellers with buyers.

Stock Brokers

Not just anyone can access a stock exchange, electronic or otherwise. Only licensed stock brokers are allowed to interact with them. This helps ensure that all rules and laws are followed.

As with stock exchanges, stock brokers may be live or electronic. A traditional stock broker can provide a more personalized service, but this service comes at a price. Electronic brokers are designed to make trading faster, and they usually charge lower fees. Still, inexperienced stock traders often do better when working with a living, breathing stock broker.

Buying and Selling

When you choose a stock broker to work with, you must open an account with them. Most require a minimum deposit to get started. Once you’ve established your account, you’re ready to start buying stock.

It’s up to the investor to research any stock he is considering. Once he settles on a stock and decides how many shares he wants to buy, he contacts his stock broker. The broker places the order, deducting the stock price and a commission from the buyer’s account.

In order to turn a profit, the investor must watch his stocks and see when they gain value. When that occurs, he contacts his broker and lets him know that he is ready to sell. The broker once again sets up the transaction, deposits the profit into the investor’s account, and takes out his commission.

In order to make money trading stocks, it is best to make large trades. Brokers usually charge the same fees for small or large trades, so if you buy and sell in small amounts, the commissions will eat into your profits. If you plan to make small trades, an online broker may be a better option due to lower commissions.

The act of trading stocks is pretty simple. The hard part is deciding which stocks to buy and when to sell them for maximum profit. Trading is far from a guaranteed money-maker, so if you have a low tolerance for risk, putting your money into more stable investments could be the way to go.

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The “The Neatest Little Guide to Stock Market Investing” was written by Jason Kelly, the author of the popular “The Neatest Little Guide” series.

His latest edition of “The Neatest Little Guide To Stock Market Investing” offers the reader an essential resource book on stock market investment. The book covers topics like why stocks are good investments, how you make money owning stock, why and how a company sells stocks, how you choose a good broker to buy stocks, how you evaluate stocks, and much more. In fact, I learned more in the week I spent reading this book, than in 6 months of listening to tips from co-workers, on-line discussions, and self-directed research.

The book also features the Kelly’s Maximum Midcap Strategy, which is a successful investment program, real-life scenarios of successful investments, insider knowledge from highly successful investors like Peter Lynch, Warren Buffet and Bill Miller, analysis and comparison of their chosen methods, well-resourced and recommended internet investment sites, newsletters and books, and summaries of all the key points.

In each of the 7 chapters, he covers every area that a serious stock investor should be familar with.

In chapter 1, he defines all the terminology you’ll encounter in stocks. In a very readable manner, he quickly covers EPS, P/E, PSR, ROE, Beta, and numerous other concepts that are useful.

In chapter 2, he describes the methods of 6 all-time top investors (including: Buffett, Lynch, O’Neil, etc.) comparing and contrasting there methods.

In chapter 3, he explores what some historic evaluations of stock growth show. This is great stuff, especially during a down market.

In chapter 4, he explains in detail the Dow Dividend Strategy. Anyone can understand this and with only 30 minutes of work per year have a relatively successful investment plan.

In chapter 5, he covers the process of choosing a broker and placing orders.

In chapter 6, he covers some of the many methods you can use to research stocks. With a ton of web-sites, newsletters, and books, Kelly’s advice can save you countless hours wasting time looking for information from the wrong source.

In chapter 7, he explains his own strategy. With easy to understand worksheets and using the knowledge gained earlier in the book, he guides you into an investment plan that will suit you.

This book is for anybody interested in stock market investing. It touches on every topic a beginner investor should know before embarking on an investment career. It is informative, light-hearted, enjoyable to read and written in an easy-to-understand language. Even if you have a broker that you like, you owe it to yourself to educate yourself with this book.

My advice: If you are serious investing in stock marketing, get this book – “The Neatest Little Guide to Stock Market Investing” today!

So, who’s right? Well… it depends on how you view it.

In fact, there is no secret that practically all investments carry some degree of risk. Stocks can lose value, or their issuers could stop paying dividends. Bonds may not be repaid as agreed. That’s why it’s so important to thoroughly research any investment you make.

But some investors prefer to buy and sell attractive stocks in the hope that they will increase in value. If this works, it can bring them a nice sum of money in a short time frame. If it doesn’t, they could lose big. Trading in this manner is known as speculating.

Investing in its true sense is putting money into something and leaving it there for the long term. By using this technique with stocks, investors can collect dividends. While one dividend payment may not amount to much, dividends are usually consistent over time. They are usually even paid when the company experiences a downturn. Over several years, an investor that sticks with a reliable dividend-paying stock will almost always come out ahead.

Another component of a sound long-term investment strategy is diversity. While speculators often invest all of their money in one market sector, savvy investors know that spreading their investments out is far less risky. The various investments balance each other out, so while some investments may lose money, the gains of others tend to make up for it.

Speculators, on the other hand, tend to invest heavily in one market or market sector that is showing an upward trend. While this sometimes works out well, one must sell at just the right time to make a profit. This means looking for signs that the market in question is at its peak, and that’s not always easy to do. Often speculators wait too long, and the market crashes before they have time to sell. This can result in substantial losses.

Despite all the risks, speculating is alive and well. Those who use such strategies are usually looking for a way to turn a quick buck, rather than investing wisely and reaping the rewards later. But as with any get rich quick scheme, speculating has a tendency to blow up in one’s face.

Investing is a complex game, and it requires a great deal of patience. You may not see returns right away, but if you do your homework and choose solid investments, you can make lots of money in the long run. Speculating is more like taking your money to the casino. You might get lucky at first, but if you continue, the odds are not in your favor.

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Perhaps both are correct! As the situation stands now, stock market analysts are waiting for the dreaded bottom to fall out from the market. They thought it would happen on Oct. 24th, but it didn’t.

While most experts are now saying we are in a “global recession”, if the foreclosure rate continues, we may hit bottom sooner than later. So what should you do?

First, don’t make decisions based on fear or panic. Think about the long-term effect. If the old mantra of “buying low and selling high” is true, then you may wish to wait until the stock market falls even further.

Analysts say there are many bargains out there, and now is the time to take advantage of them. However, we do not yet know the full effects of the recession and how it will play out nationally and globally, so you may want to wait awhile to ascertain if it is worth it to even venture out into the “path not taken”.

Warren Buffet has an entirely different view. He feels now is the best time to invest in the stock market and he put his money where his mouth is by investing $5 billion dollars in Goldman Saks. Of course, he can afford to take this risk. Those of us who live from paycheck to paycheck cannot.

Quite frankly, if you asked ten analysts and economists what they thought about investing now, you would receive ten different answers.

If you have never invested in the stock market before, you will need to spend quite a bit of time researching companies, profits, and other variables. You may even wish to tune in to Jim Cramer. Recently, he told his followers to sell all their stocks!

If you are an investor, you may have a pretty good idea of when to hold and when to fold. All of this requires prudent and thoughtful consideration to what is happening around the world. It is difficult to feel confidence in the stock market with foreclosures and unemployment on the rise, banks closing their doors, corporations dismissing thousands of people, cost of living higher than ever, and the prospect that OPEC will decrease oil distribution by 15 million barrels.

Perhaps this is a time when we start investing in ourselves by budgeting wisely, seeking promotions, applying for second jobs, or opening a home-based business. There is enough stress already, financially and emotionally – why add more?

Ok, Here is a tip:

Below You can see a 15 minutes STOCK INDEX chart. It is very easy to see the secret/method. You can try to guess, or you can signup and get an 100% completely tested method of pure mechanical trading system..

Try to guess where the secret is?

Well, I’m sure you already got 25% of the secret… – but it is important to learn the exact trading method … Do it now