Stock Market For Beginners: When Not To Trade Stocks

Stock Market For Dummies

This next stock market for beginners post is intended for the traders out there as it will provide them with an important rule that should be followed. That stock market for dummies rule is that no trader should buy or sell investments during the first and last hours of the market.

How does the stock market work? In terms of the stock market hours, the most volatility occurs during the first and last hours and for good reason. In the morning, investors are trying to jump in before any big moves occur. Also in the morning, investors are trying to sell any investments they missed so that more losses won't incur.

In the afternoon, investors are trying to sell their stocks that haven't pan out or trying to jump in stocks in hopes that an after hours trading spike will occur. A side note, don't be an after hours trader. It's a big stock market basics no-no.

So with the majority of buying and selling occurring during the first and last hours of the market, it's pretty clear why volatility is so high during these times. And it's also very clear why investors need to follow this stock market for beginners post.

Although there will be some instances in which you will miss out on an investment or two by waiting an hour, following this stock market for dummies rule will end up saving you a ton of money in the long run.

As an investor, you want to follow all the stock market basics rules including limiting risk by avoiding high volatility periods. That's why all traders should always play under caution and should always be conscious of all these stock market for dummies rules.

If you found this stock market for beginners post helpful and wish to find more information like the rules found in this blog, visit Secrets of Successful Traders. There you can find more stock market basics rules that will make you a better investor.

I can’t teach everybody how the stock market works as a whole because there is too much to cover. But reading up on sources will get you close to being a solid investor.

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