For the beginner

Another thing that I really like for a beginner is just trading in one stock at a time.  In my belief diversification is just a way of admitting that you really have no idea where anything is going at any time.  By trading one stock at a time you have the chance to think about your trade, see how it acts and make a decision to keep it or not.  Someday trade two or more but for now just one and you will lose less money (in my opinion)