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| Answer | I am new to stocks. I have $5000 I want to trade and invest. What should I do?
Daytrading takes a lot of time and research to trade successfully. When you begin with only $5000, it may be wise to invest or swing trade, before making trades every day.
Here is a checklist on things to do when you wakeup in the morning:
* Read as much news as you can find. News is crucial for determining trends, momentum, and can help you reduce risk.
* Listen to CNBC. CNBC covers a lot of market news, including
individual stocks. They also interview CEO's, traders, and brokers, and other market experts.
* Use a stock screener to find companies that fit certain criteria. Criteria may be a price range, minimum / maximum volume, earnings, market capital, signals, and more.
* View Charts. Charts are important for determining trends and
patterns. Some people use line charts while others only use candlestick charts. You can even view technical analysis indicators on the charts, further helping you reduce risk and potentially maximize profits.
* From these techniques above, create a watchlist of 20 stocks to monitor throughout the trading day. Add this watchlist to your online broker's streamer application.
Monitoring Streamer
* Watching a limited number of stocks for potential patterns or trends will help you maximize profits. You must be able to analyze these stocks in depth, so choose a number you feel comfortable with. Start with 5 for a few days or weeks, then add 5 more. Do not overload yourself or you will miss crucial opportunities.
* Things to look for:
** Large increase in volume. Price may go up or down.
** Fast increase in stock price. Example: A stock at 10.00 jumps to 10.50 in just a few minutes of trading.
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