SEPT 13: Online Stock trading for a Beginner

by David Jenyns on September 13, 2006

Itís All about the Green

When I could see the numbers on the stock market page in the newspaper I couldnít understand them. Now that I canít see them anymore, I donít care to understand them. Besides, itís much more fun online. Itís fun to own a little bit of stock and check on it regularly. Itís more fun to own a lot of stock and check on it regularly and find that itís gone up and quickly sell it. Online stock trading for a beginner is like unwrapping a present and finding another box wrapped up inside of it and another and another.

Thatís because thereís a lot to learn but with all the tutorials for online stock trading for a beginner, we can make stock decisions based on criteria we have no idea of the meaning of, but the arrow was green or the ranking number was high. Personally, I get a kick out of the little graphic on MSN that shows the amount of risk and the likelihood of return. All I can see is the amount of green color corresponding to the graph but when I see just a smidgeon of green on the risk end and a lot of green on the return end, Iím in. Thatís my stock.

Insider Trading

When I first started online stock trading for a beginner learning exercises I learned an interesting little tidbit that I still use today. Itís about insider trading. Not the kind of ďlook at my new shawlĒ kind of insider trading that Ms Stewart got busted for. No, this kind is legal. All you do is look at how the insiders are trading. In other words, suppose youíre thinking of buying a few shares of Imation stock. Imation makes computer storage devices like blank CDs and DVDs.

Just one part of the online stock trading for a beginner information gathering you need to do before you settle on buying that Imation stock is what are the insiders, or executives, the ones that have thousands of shares of stock of the company they work for, doing? Are they buying Imation stock right now or are they selling their Imation stock right now? These are the people that know what is going on at the company so by looking at their stock trading activity you might just get a clue.

Several months ago, several Imation executives sold thousands and thousands of shares of stock but as of late, two executives purchased thousands of shares of Imation. See, it makes sense. When I look at the price of that stock several months ago, it was the highest it has been in a very long time. Right now, it is several dollars lower so of course it is a good time to purchase because after studying a few more factors, I see it has a more than a fair chance of going back up.

Now, for you who are gathering online stock trading for a beginner advice, this is just one little tip. Look at what the executives are doing. It is public information and most of the time when you analyze those decisions, they make sense.


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