Trading Stocks 101

I have my 401Ks, not much of a savings account, and I am terrible at managing money. So, I know I need to get better at this. I need to budget, clip coupons, stay home once in a while and invite people over for a drink at my house instead of going out to expensive restaurants and bars.

My most recent effort at saving and making money involves the stock market--or more accurately, dipping my toes into the stock market. OK, so I am not one of those top tier stock owners. No company is going to tremble at the thought of my owning a few measly shares of their company. But I have wanted to do this for some time and to learn about trading at my own pace. So I started a sharebuilder account. I have been able to add a few shares of this or that stock every week for minimal cost. Not making much money yet, but am enjoying the learning process. (At some point though, it needs to become about making money!)

So, in the process I have been doing some research on stocks and finding out what looks hot or not. I have been reading everything from information on the sharebuilder site itself to articles in Smart Money, Wall Street Journal, Motley Fool, and some other informative sites, including press releases from the chemical investment banking group and other such entities.

Even though most of these articles are not relevant to me and my investments, it is good to learn what is happening in different sectors. If you read trend reports in money magazines or WSJ, or a chemical m&a advisory or stock analysis from another source, you may know what to do with your money when you have gained a substantial amount. Or what companies to invest in now. If you know that a company is being acquired or merged, that can clue you into how the compay may perform in the future.

Or simply put, reading such material can also prepare you to talk intelligently about mergers and acquisitions when you are at a fancy dinner party, and the people next to you are talking about a deal in the works. Never hurts to know the lingo and what is going on in the sectors.