Buy Stocks Online | Joining A Stock Market Forum

Joining A Stock Market Forum

Editors note: Guest post written by Richard Lauder, who also guest posts at Beating The Stock Market

A few years ago, I joined a free online stock market forum whose recommendations and “tips” never really yielded any significant profits. Most of them use the “Pump and Dump” attack, where several sites send out mass alerts on a particular small cap stock and cause a bit of buying spree on that stock. You will sometimes see a large percentage increase in value, but usually a very short term rise in these stocks which amounts to just a few cents per share. Be aware that it usually falls again just as fast as it went up, so you need to be ready to get out fast. That’s the “dump” part of the equation. If you have the time and patience to closely watch and trade these stocks often, and at large volumes, you can make some profits.

I usually stick with one of the “big house” sites for research, news and stock market 101 type of information. These guys spend a lot of time, money, and resources to come up with their data, and I can access all of it just by paying to trade on that site. Most of these sites will offer options in membership to where the more you pay, the more of these tools you will be able to access. The old saying still holds true, “you get what you pay for.” While there may be some sleeper sites out there that occasionally hit on some fast risers, you will pay for them, if you can find them in the crowd with all of the others.

As you have always heard, do the research, follow the leaders, and stay in it for the long run. Most of the recognized large trading firms now offer online trading for from four dollars up to twelve dollars for each basic market trade. Some of them will require a minimum starting balance of several hundred dollars. There are a couple of really good sites that have no minimum balance requirements, and actually offer some pretty impressive research and tracking tools. My recommendation is to study the difference in the types of charts, graphs, history, and tracking tools that are most commonly used, and learn how to use them before you buy stocks. Once you find which method works best for you, and become comfortable spotting trends and patterns, then find the site that offers these along with your basic trading platform. Check for a stock market course in your local area. You can pick up some good stock market tips and information there.

You also need to decide what kind of trader that you want to be. A day trader has to have a lot of knowledge and resources, and must be in the position to study and trade pretty much 24/7. A commodities trader, and especially short sell traders need to be even more in tune with what they are doing and pay even closer attention. At this stage, you are most likely just diving into stock trading and will be an occasional trader. My advice is to start small and take your time learning the ropes until you have a good understanding and good “gut feel” for what you are doing. If you are interested in only being an “investment trader,” where you want to put some money into something and not have to deal with the details day in and day out, then you will most likely not be the stock market forum type.”

These forums are more for traders who pay attention to the market every day, and trade at least several time per week. As with everything online, there is some junk out there, there are a lot of scams out there, but then there are some real jewels to be found. You just have to take the time to dig them out.

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