I'm new to stock trading, i need a few pointers plz =[]

TheGreatGatsby said: "hello, I just opened a stock portfolio and I just can't figure out what my first few moves should be. I know I'm not going to make money overnight but I'm willing to take time to learn. any suggestions on what i should put my money in? if it helps, my portfolio is at 3,000 USD with a flat-rate per transaction fee from "ameritrade". Any suggestions are welcome, thanks for your time."

Pb3190 said: "I don't know if you have done this yet, but you may want to read a few books and paper/virtual trade as your first few moves. Learn as much as you can before you start spending real money. I have been using a virtual portfolio on Virtual Stock Exchange, a free site that lets you practice in the market. When I feel I have a good understanding of the market and my virtual portfolio has a good track record, then I will be opening an online broker account. Why not learn with fake money, instead of learning by losing some real money?"

Kloewer said: "The best way to learn is to take $1000-$2000 and get some OJT. Put the money into a couple solid stocks. You can use Internet sites like Yahoo! Finance and Google Finance to review news, financial statements, and so forth, and then pull the trigger when you’re comfortable with the prospects of a company. You’ll have to be at peace with the fact that you could lose your money, but that’s a possibility no matter how many finance books you’ve read. And if you stick with blue chips that you’re already familiar with, you can rest easy that your money isn’t likely to completely disappear."

TheGreatGatsby said: "thanks Pb3190, i think thats what i'll do. seems like the best way to learn. i have no patience for reading unfortunately. oh and by the way klower, thats what i was originally gonna do when i first thought about starting off."

JAP said: "Read, read, read... learn, learn, learn."

Pb3190 said: "Well, if you don't like reading, think of it as the first step to making a return on your investment. This forum and virtual trading has been nice, but I have learned a lot by reading a few books and stuff online."

Kloewer said: "Gatsby- If you're averse to book-learnin’, it may be because you don’t have anything at stake. Once you drop some coin into the market, you’ll be amazed at how much more interesting financial books get. It’s sort of like going to the horse track—for any reasonable human, equine genealogy is a total bore; but for someone betting on the ponies, it becomes a topic of interest. That’s why I think it’s best to have some money invested while you’re learning."

TheGreatGatsby said: "thanks again for your suggestions. after the research i did today, reading seems inevitable."

LongArm said: "[QUOTE=TheGreatGatsby]thanks again for your suggestions. after the research i did today, reading seems inevitable.[/QUOTE] Yes it is...if you want to be any good. I'm amused by how many people try to trade without learning the first thing about it. As if trading is just a matter of opening a brokerage account and buying something. I suppose, though, that's yet another reason why the majority of traders fail."

kevinvestor said: "I am exactly in the same position as your are buddy. If i am correct, they gave you 45 days of free trading for opening the account with ameritrade. I made sure to trade a ton during this free period. I tried to watch the market closely and made a "quick buck" by selling when there was a small rise in prices. Even if you do end up losing money, each trade would have been 9.99 so buy 20 stocks and you saved close to 200 dollars. Either way you win =]. I guess."

TheGreatGatsby said: "hey kevin, unfortunately the account that im using with ameritrade was my father's and he never got around to using. he gave me the password and login a while back and told me to go for it. i wish i had opened my own though, considering that free 45 day period"

Rickster said: "Your prime goal for now should be preservation of working capital (survival). There are a lot of us experienced guys that are trying to get your money. You need to hold on to it so that your have something to work with when you are ready compete. So, I would recommend trading with funny money for as long as you can stand it. Take lots of chances and get a feel for the ropes. At some point you will probably decide that this stock trading stuff is child's play. (Everyone is a genius when they are betting fake money.) Then go ahead and find out what it is like to trade with your hard earned money. Depending on your temperament, you may find it to be completely different. Regardless, focus on survival. It seems most people think this is a game of prediction. But it isnt. Risk management is what separates the winners from the losers, no matter how much experience they have. The key is in taking trades where the potential upside greatly outweighs the potential downside."

Rbreb13 said: "Very well put Rickster. Money Managemant and loss prevention are some very important things to factor in. Learning to cut your losses and letting the winners run is tough to do. Having a written out trading plan is a good idea. Keeping a journal is also good. I keep a journal of every trade. Why/when/what etc. so I can go back and learn from my success/failure. I'm more of a swing trader so it works for me."

FirefighterB said: "Rb, that's a good idea I didn't think of. Keeping a journal of my reasons for buying or selling would help me see where I screwed up in my thinking and where I was right. Great tip, thank you."