There are a lot of people out there who want to get trading but don’t know where to get started trading.
Getting started with trading starts with saving cash. Before you can trade you need to have money to trade, I know that part isn’t the best, but none the less it’s a necessity.
So the first thing you need to do to get started is to start saving money. It can $5 a week or $500, but you need to get started with something. $5 is better than $0, $5 a week is $20 a month and $260 a year. I know that’s not much, but that’s $260 more than you have now reading this. Ideally, you’ll need more but it’s certainly enough to get started. If you put back $5 every payday, and add $5 each pay, if you get paid every 2 weeks, at the end of the year you’d have $1755. Granted by the end of the year you would be putting back $130 a pay to do that, but you get the point.
While you’re saving cash you shouldn’t just sit around waiting for the account to build up, take the time and learn about the stock market. Learn how it works, what a stock is, what happens when you buy and sell a stock and what causes a stock to rise and fall in price. Even if you’re going to use technical analysis as a basis to buy and sell, you should still learn the basic fundamentals of the stock market.
A book I found really helpful to gain an understanding of how the stock market works is “Get Rich Carefully” by Jim Cramer. Some people love him, some hate him but he’s spot on with knowing fundamental analysis. A podcast I listen to is “Wall Street Unplugged” with Frank Curzio, he’s also another spot on guy. There are a ton of resources out there don’t get lost in them just pick one or two and move on or you’ll get paralysis by analysis.
Once you have a little knowledge under your belt you should go right out and start trading-said no one ever.
Some brokers have a great feature built into their platforms and that’s the ability to have a demo account. TD Ameritrade has one that I used, it’s not perfect but it’s good to get an understanding of how everything works. Once you start trading with a demo account you will quickly understand why everyone needs to start out with one. Nobody wants to lose money just because they misunderstood how the platform worked and you click the wrong button and you sell short or you mistype an extra 0 and bam you’re 10x into a position that’s losing just because you didn’t take the time to understand how it worked. Don’t be that individual. Be smart, trade a demo account first. Even if you’re not going to use the broker with the demo account with your real money you should still start with one. This is a good thing to do while you’re building up your account. Trust me, just do it.
Even if you save money, read books and listen to podcasts, you still may be confused on where to even start, what stocks to look up and study. My recommendation for this doesn’t bother looking into companies that are in jeopardy of going bankrupt, being bought out or merging with a larger company, and stay the hell away from penny stocks. Don’t fall into the hype! If it’s not traded on the NYSE or Nasdaq stay far away from it. (If its OTC its probably bad news.) I’m not saying all penny stocks are bad but stay clear of those stocks that are under $1 and listed on the OTC market. You can get into them later once you learn more, don’t let the low share prices lure you in it’s guaranteed to take all the money you saved up for.
Back to choosing what stocks to look at if you’re having trouble, just look at some of the products you own. If you’re reading this on an iPhone, then look up Apple, do the same if you’re on any other device, look up the respective manufacturer. I know these stock prices are high but you’re not buying anything at this point, or at least you shouldn’t be. This is strictly just to learn how they work. It gives you something to look at and understand the patterns with. Notice this is all before you ever place a trade. At this point, you haven’t spent any money unless you have bought a few books or courses.
Once you have a good grasp on what the market looks like and have a good feel, pick one stock, make sure you max out margin and go all in on one stock and swing for the fences and you’ll be rich and be able to quit your day job…
If you believed that and left the page to go do that, you deserve to be broke and busted with a blown account because that’s a typical rookie move. DON’T DO IT. Segment out your trade and only trade ONE position at a time, don’t try to manage multiple positions. Remember you’re just starting out, take it slow. If you have $2k in your account, do not use margin and divide by 4 and give yourself $500 towards a big name brand stock or even better an ETF. Don’t whine they don’t move fast enough or make insane gains in less than an hour that can send you into early retirement in a matter of weeks because that shit doesn’t exist. I don’t care where on the internet you heard about it if that’s the case I am a french model making millions every year. Bonjour, nice to meet you.
Obviously I’m not a model if I was they would make me model snowsuits for gorillas.
Point is nothing is fast, easy and cheap unless you’re at Chick Fil A, that place is awesome. (If you like chicken.) But we are not at Chick Fila and it’s probably Sunday anyway.
To build a successful trading account and become wealthy you’re going to have to take baby steps, maybe even crawl before you’re sprinting around in your private jet. Take small trades and take small profits and small losses. Focus more on just making good trades and not making money. Money is a secondary goal here, making good consistent trades is the primary goal. If you succeed, money will follow.
This may not be the fun way to get started trading, but from experience it’s the smart way. Build your wealth one trade at a time. If it’s fast it won’t last, if it’s going to last it won’t be fast.
The market will always be there tomorrow, but if you rush it, your money may not be
If you would like to learn more about how to get started trading sign up in the form below for my free 3 part email series to make sure you get started on the right foot with your trading career. The only way I can help you avoid mistakes that I made is to be on this list so don’t miss out.