A beginner who wants to start a stock market career would always need a guideline but the hardest things beginners mostly come across, as like in all other fields of life, is getting started. The beginners need a guideline to decide which way they must head to start their career in the stock market.
Options to Avoid as Beginner in Stock Market
In the stock market, you are not sure if you will lose your invested money or will you make more from it. Therefore, you must first decide what kind of philosophy you want to follow. To decide the philosophy,besides learning about the things that you must do, it is also important to learn about things that you must not do at the start.
This article will immensely help the beginners by guiding them about the directions they must not go.
You can be a day trader. In this case, you do not make investments in a company. You do not care about the company, but the stock. You must do a lot of technical research for this. You try to make quick money by getting in and out of stocks several times per day.
So, it is something that you can do in the stock market, but the experts do not recommend it to the beginners.
You can start your stock market career being a short-term trader. This is also not recommended by expert traders for the beginners because there are chances that you will lose a lot of money by investing in it. For this, a person may go into the stock market for a week, a month or maybe a couple of months. The companies announce earnings every three months, that means four times a year.
So, what a lot of the beginners try to do is that they know the company is going to have the earnings and maybe they will buy in that stock by assuming that they will go out after an anticipated positive market reaction after the earnings announcement. There is a lot of speculation here, therefore, it is better not to invest in it unless you are an expert.
Another way to enter the stock market is options trading. This is also not recommended for the beginners. It is fine for the beginners to learn about options but doing it as a beginner in the stock market is not worth doing. They can use forums communities, such as Investors Hangout, etc., to explore the different stock exchange markets to learn about options trading.
You can go for options trading only when you are in the market for a couple of years, you get some experience,and you know what you are doing.
Keeping in mind the disadvantages of choosing these options, the beginners must go for some other options. But, still, that must be done rationally.