Most individual investors who are trading stocks loose money.
I'll try to make a case why individual, that does not have extensive experience with investing, and not fully understands risks involved, should NOT trade stocks AT ALL! Here are some of the reasons for not trading stocks on your own:
- Studies have shown that 60%-95% (depending on the source) of individuals trading stocks will loose money. Many will loose everything until their account is down to $0. Some with loose MORE then they invested.
- If you are still not convinced, here is a shocker: many professional money managers are in the red!
- Trading stocks is like gambling in the casino or like drugs - it's highly addictive. You'll keep coming back and keep loosing again and again.
- There are very powerful players that might trade against you and you will loose to them.
- Market is unpredictable.
- Psychology of most people is bad-suited for trading on the stock market.
If you want to give a stock market a shot, open an account where you could simulate investing with virtual money. Zecco.com
 is a good choice for this.)
If you absolutely want to try buying/selling stocks with real money, set aside a small portion of your money for that purpose and promise yourself AND somebody ELSE, who you value, that you will not add new capital to that amount. Trade with that amount for extended period of time, preferably through recession. If you loose that small amount - it will be a cheap price for a very good lesson. Just don't make this lesson too expensive.
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