Stock Trading and Other Things

What are some tips for beginning to trade stocks online?

Any programs, websites, books or other useful tips before a beginner should start to trade on a long term basis, not a day trading basis. Looking to learn so I'd like to invest little at first perhaps 1,000. Thanks in advance.

Public Comments

1. 1. My first tip has to be to develop a strong, well balanced portfolio. If you only invest in companies based on who you think will do well, you're taking a gamble. But, if you do it scientifically according to modern portfolio theory, you can minimize your risk and still post high returns. Do research on how to calculate the variance and standard deviation of stocks and use these tools regularly. You still can and should invest in companies that you have confidence in, just make sure that you do it with all of the modern balancing theory in mind.

2. The S&P 500 is probably the most important weighted index data to pay attention to. News sources won't shut up about the Dow Jones Industrial Average, but that's really a ridiculous measurement. It's outdated, only looks at 30 companies, and ignores companies that are not 'industry leaders."

3. The Wall Street Journal. Because it's the best there is.

4. Michael Bloomberg's popularity as NYC's mayor isn't what it used to be, but his business is better than ever. Bloomberg offers the best software, information, and analysis that you can ever get, although it is far more advanced and complex than the WSJ.