I will list the things here and will follow that up in my posts later on each topic and in fact some of the topics I may have covered in my earlier posts also and I will link to those if needed.

The list of steps as outlined here are

1)      The first and foremost you need to understand how the stock market works

2)      That translates into NASDAQ Definition

3)      Also Dow Jones for beginners

4)      Stock Symbols

5)      Then you need to think about what kind of risk are willing to take and that usually means

6)      Your Investing strategy – Long term versus day trading versus forex market

7)      You need to understand the stock market terms and glossary

      You should start reading the Wall Street Journal and other investing related magazines

9)      Learn about full service brokers and discount brokers and you can learn about brokers for beginners here.

10)  Learn about what are penny stocks

After you have learnt about all the above do not fret too much what you have not learnt and rather take it easy as that way you will be able to enjoy the stock market rather than it be a painful thing for you.

The next few steps as well advice is

1)      Select a discount broker and put some money in the account.

2)       Select a good stock to trade in and put a buy order and that means you should know about good stocks or rather large cap stocks as well as mid cap stocks as well as what are blue chip stocks

3)      Also then you should know what is a limit order versus what is market order

4)      Then click the buy button and sit and relax. The buy order will be executed.

The next few steps after the stock has been bought are

1)      You will need to monitor the stock and that will usually mean either you go to www.cnbc.com or to any other financial market site.

2)      You can also use a stock market ticker to make sure that you have the best of the information at your desktop and that way you need not log on to the website every time.

3)      The stock if it goes down is an opportunity to buy more if you are a long term investor and is a call to stop your loss if you are not waiting for long term up trends to start. Herein lies the difference in strategy that you have employed.

4)      Next comes the decision to sell if the stock is rising and is way ahead of the purchase price. You can either sell it to make good profits or you can buy more thinking it will appreciate all the more. At this point you need to decide what kind of profits do you want an exit the stock.

5)      Assuming that you sold the stock the entire set of transactions buy as well as sell will reflect in the portfolio and that portfolio will also tell you how percentage gain you made or percentage loss as well as if you have more than one stock then it will tell about what is the overall gain or loss percentage.

Once you are familiar with the entire process then you will have to think about investing more money and also diversify your stock picking so that you have good defensive stocks which and also some stocks which will give you some good amazing profits over the short period. These stocks may be more risky than the others but that is why they say that stock market is not for the faint hearted.

Related posts:

1. Learn To Invest Stocks As a Stock MArket Beginner
2. Get rich off stock market – Get rich investing in good stocks for long term
3. Understanding the Stock Market for beginners