Many always dream of making a lot of money trading stocks. They forget that money doesn’t always start flowing on the first day. Instead, you have to learn how to find support and resistance, candlestick patterns, and control your emotions. You have to be patient and start learning slowly before you can start seeing great results. However, this doesn’t mean it is not an achievable goal, so this piece will highlight significant points on making money in stock trading.
Day Trading Course
Table of Contents
Introduction on How to Make Money Trading Stocks
If you want to make a lot of money trading stocks daily, the first thing to do is set your expectations. Can you expect to make a lot of money every day? Maybe not. Can you make money trading stocks daily? Absolutely. You need to figure out your trading style. Are you a day trader of stocks vs options or futures? What technical strategy do you like? Once you figure out your style, practice it like crazy!
To start as a new stock trader, you must follow specific steps to guide you. First and foremost, this includes researching market trends. Research is vital in this field, which even the most established traders understand.
Therefore, learning about the market trends and the reputable sources that can aid you in staying up to date on breaking news is a must. The Economist, Kiplinger, and Bloomberg are some of the most reliable stock trading magazines you should add to your reading list.
Open a Trading Account
Once you have done enough research to start you up, you can now create a trading account through a brokerage firm. Some of the common sites include E*Trade, Fidelity, and TD Ameritrade.
Reviewing other users’ reviews and the BBB ratings will help confirm the website is reputable. To save time, check out our blog here on the best brokerages.
One piece to remember is their fees; many firms differ in their charges, so choose based on your financial situation. Practice does make perfect.
Trading stocks goes beyond research. If you wish to improve and enjoy good returns, you must practice. Before making any moves with your money, I suggest downloading a platform like ThinkorSwim to practice.
Their simulator allows beginners to practice stock trading without using real money trading stocks. Through this practice, you get to equip yourself with better techniques before investing with real money.
COURSE |  |  |  |
|---|---|---|---|
| DESCRIPTION | Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action | Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading | How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading |
| INCLUDED | Daily watch lists • Trade rooms • Trading scanners • Discord • Live streaming Day Trading > | Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming Options > | Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming Futures > |
How to Make Money Trading Penny Stocks
When making a lot of money trading stocks, we usually think of penny stocks. You want to make sure you find the best penny stocks to buy. Pennies are notorious for pumping and dumping. As a result, you want to ensure you’re not on the end of the dump, which happens to many new traders. They see the promise of riches and jump in, more often than not, to their detriment. Don’t get caught up in gapping stocks trending on Twitter…stick to the technicals, or you’ll pay the price.
Picking the Right Stocks
Once you have decided on your trading strategy, the next step is picking the right stocks to make money. At this point, many questions generally arise.
However, the underlying truth is that the right stock does not exist. It only exists so far as that it fits your trading plan. Day traders, swing traders, and investors have different criteria that make their stock the right “pick” for them.
As a result, you need to know what you want to do with your stocks. Do you want to buy and hold a stock long term? How about day trading? Swing trading overnight or longer is also an option.
How an Investor Picks Stocks
For an investor, a company’s profitability is one of your primary concerns. You intend to buy stocks that will increase in value. This means you need to evaluate the financial reports of a selected company. Most of the documents are usually available online, especially for companies that are traded publicly.
The ability of the company to become profitable with time is also a concern that you need to keep in mind. Some companies are worth investing in, even if their annual report for the previous year did not show any profits.
However, you must check their yearly expenses, leadership, and debt. Reviewing the balance sheets of such a firm will also help you have a clear picture oof whether what you can expect for future profitability.
How a Day Trader Picks Stocks
On the other hand, a day trader is not that interested in a company’s company’s financial reports. They are not in it for long; the fundamentals don’t matter. What matters is the technicals. Is it moving on high volume?
Is it a false breakout? Where is the price action concerning VWAP? These are just some of the questions day traders ask themselves before entering a trade. So, summed up, the differences between fundamental and technical analysis are many.
Fundamental analysis typically looks at a company’s leadership, future goals, reputation, and profit history, whereas technical analysis looks at price movement, charts, trends, and trading volume.
You want to stick to what you know when making money trading stocks. As a beginner, I suggest you stick with well-known companies. Why? A few reasons. These companies have many available data about their trading histories, profitability, and leadership. Take our day trading course to learn more about what to look for when trading any picks.
Stock Signals & Alerts
Is Trading Stocks a Good Way to Make Money?
With COVID-19 hitting everyone hard, people looking to make money trading stocks arose. It’s a great way to make money at home. Or low-key making money while working. So the question is, is trading a good way to make money?
It is if you’re willing to put in the time and effort to learn. If you’re looking to make a fast buck, nine times out of ten, you will be unsuccessful. Instead, you must be willing to study, practice, and take time.
Final Thoughts
As a new trader, you need to remember that some tips can aid you in having a successful experience. This includes looking at different strategies, analysis methods, and market types. Basic analysis approaches are technical and fundamental. They’re both used in predicting price changes, which helps determine which stocks to buy and when. A good tool with unique analysis is Atom Finance. Give them a look before you go spending an arm and a leg for a research tool/
I’d be remiss not to mention the importance of a written money management plan. One rule of thumb to remember: Never invest 100% of your money into any one security and never have 100% of your money invested.
Secondly, never enter a trade without knowing when and where you will get out. Never let a loss on a trade get greater than your risk tolerance (i.e., 2%), and always take your loss and walk away. Please don’t lose more than you need; don’t be afraid to take the loss. Remember, it never hurts to make a profit!
