How to Trade Stocks For a Living
How would you like to get up when you want, do what you want while working your own hours anywhere in the world? Trading stocks gives you the opportunity to live a fantastic life while never working for anyone else.
There is no secret formula to becoming successful in stock trading other than picking the right stockbroker, using a few methods to protect your money, and getting proper stock picks.
You do not need a degree in finance or special skills or knowledge.
If you follow a few simple but crucial steps you will become successful at stock trading.
1.
Use a Cheap Discount Broker - Many investors have no idea that trading fees have dropped significantly in the last 5 years and are paying way to much.
Todays discount brokers are cheap, in fact I have no idea how they can make any money from the fees.
As long as you pay no more than $5/trade you are getting a good deal.
Sogotrade ($3/trade, $500 min.
deposit) and Tradeking ($4.
95/trade, $0 min.
deposit) are both good discount brokers and have good research tools.
Trading fees will by far be your largest trading expense so make sure you pick a cheap broker.
2.
Keep Losses To a Minimum - Since 8 out of 10 picks will more than likely lose money it is important to limit the losses.
The other 2 out of 10 will make you wealthy and thats how you make your money.
When you buy a stock you should also place a stop loss order afterwords for 10-20% lower than your purchase price.
If your stock begins to drop your stop loss order will automatically sell your stock before it becomes a significant loss.
A stop loss order is a preset order that you put in to prevent large losses.
3.
Get Expert Penny Stock Picks - When investing in small stocks it is extremely important to get the best advice you can afford.
A membership site where you get daily small stock picks is essential until you build up your knowledge and experience which usually takes between 6-12 months.
In conclusion, trading stocks for a living is not rocket science.
If you follow these simple yet crucial rules it will be just a matter of time until you become wealthy.
There is no secret formula to becoming successful in stock trading other than picking the right stockbroker, using a few methods to protect your money, and getting proper stock picks.
You do not need a degree in finance or special skills or knowledge.
If you follow a few simple but crucial steps you will become successful at stock trading.
1.
Use a Cheap Discount Broker - Many investors have no idea that trading fees have dropped significantly in the last 5 years and are paying way to much.
Todays discount brokers are cheap, in fact I have no idea how they can make any money from the fees.
As long as you pay no more than $5/trade you are getting a good deal.
Sogotrade ($3/trade, $500 min.
deposit) and Tradeking ($4.
95/trade, $0 min.
deposit) are both good discount brokers and have good research tools.
Trading fees will by far be your largest trading expense so make sure you pick a cheap broker.
2.
Keep Losses To a Minimum - Since 8 out of 10 picks will more than likely lose money it is important to limit the losses.
The other 2 out of 10 will make you wealthy and thats how you make your money.
When you buy a stock you should also place a stop loss order afterwords for 10-20% lower than your purchase price.
If your stock begins to drop your stop loss order will automatically sell your stock before it becomes a significant loss.
A stop loss order is a preset order that you put in to prevent large losses.
3.
Get Expert Penny Stock Picks - When investing in small stocks it is extremely important to get the best advice you can afford.
A membership site where you get daily small stock picks is essential until you build up your knowledge and experience which usually takes between 6-12 months.
In conclusion, trading stocks for a living is not rocket science.
If you follow these simple yet crucial rules it will be just a matter of time until you become wealthy.