Whether you are a novice or a long-time investor, its always prudent to stay on top of the latest advances in the market. Knowing when to invest, where to put your money and how long to keep it there, isnt just a skill. Its acquired through experience and weve written this article to provide you with information from experts, who can help you catch up.

Keep in mind that stocks arent simply just a piece of paper you purchase and sell when trading. Owning a stock makes you part of the body that owns the company which issued it. This entitles you to both earnings and claims on assets. In some cases, you can even vote in major elections regarding corporate leadership.

When beginning in investing in the stock market, be sure to not invest too much. Many people make the mistake of putting all of their money into the stock market and end up losing it all. Set limits to the amount you are willing to gamble on and no matter what, do not go over this limit.

It is crucial you reevaluate your investment decisions and portfolio on a daily basis. The economy is always changing. Some sectors outperform others and companies eventually become obsolete. Depending upon the economic environment, it may be better to invest in certain financial instruments rather than others. Due to these realities, it is key to keep as close an eye on your portfolio as you can.

Remember to rebalance your portfolio. Rebalancing can be done on a quarterly or annual basis. Monthly rebalancing is not usually recommended. By periodically rebalancing your portfolio, you can, not only weed out losses, but also make sure that yields from winners are reinvested in other sectors that will eventually hit their growth phase.

Do not set price targets for your stocks. Instead, you should set a stop-loss limit. It is always wise to plan for the worst, while hoping for the best. Because of this, whenever you purchase a new stock, set a stop-loss value at about 15 percent below your purchase price. This is the point at which you should cut your losses and sell your stock, before it becomes completely worthless.

Remember that the stock market has recovered from every crash it has ever had. By investing with regularity, you buy low and can sell high for a simple yet sound strategy. Bear markets might not be fun, but they are buying opportunities. If the market drops more than a fifth, re-balance your portfolio to move more cash into it. If it drops by more than half, put everything in it, you can profit from the inevitable rebound.

Examine your trade confirmations carefully. When you place a trade through a broker, you will get a trade confirmation via mail or email. Examine it carefully, and if you find an error, contact the broker immediately to get it corrected. Also, hold on to your trade confirmations, as they are needed for tax purposes.

With the information above, you have a good head start on learning how to trade stocks. It now depends on you to use these strategies and ideas to help you gain money and to succeed. If you apply yourself diligently, patiently, and intelligently, you will find that your efforts will pay off handsomely.

Posted by Nathalie Buehler