How to evaluate stocks for beginners

  1. Remember that the market is rigged, the fiat monetary system is backed by nothing, and you're always trading with outdated news.
  2. Premarket: This is a market that trades after hours that can cause a positive or negative effect on a stock prior to open.
  3. Outdated News: Generally, a stock trends up or down before news breaks out. When the average trader hears the news, the stock has already moved and can sometimes retreat or increase to its original price - a head fake.
  4. Technical Analysis: Study up on all the technical analysis. For example, learn pivot points and support and resistance. This is essential to the basics of technical analysis; another would be understanding candles when looking at charts - the list goes on. I learned a lot from babypips
  5. The markets are bought and sold on emotion, panic and greed. Keep a steady head and learn when not to trade.
  6. Learn how to take a loss to "live for another day."
  7. Always take what you read on forums and any other social media with a large grain of salt! There are people using forums to push stocks that aren't necessarily good buys.
  8. Start with a small amount of money (like between $200 or $500) to learn about how to use your trading platform so if you make a mistake you only lose a little bit of money. Think of it like a course you'd pay at college or university. I would do this for at least a year before I would invest anything larger. It's amazing when you're money is on the line, you generally get more motivation to study the markets.
  9. Never get attached to a stock!
  10. There are tons of resources to choose from to learn more. Enjoy the wonderful world of the stock market and good luck!
/r/stocks Thread