GET STARTED TRADING (#3)
You want to learn how to get cash in your jeans by trading in the stock market. Our best advice for you to get started trading is a three-pointer.
Nobody ever got rich by quitting. The stock market is a risky place to invest, more so when you aren’t sure what you are doing. That’s why we are here to help! However, most people will endure losses at some point in their trading career and our advice is to learn from the losses and DO NOT QUIT!
There are many horror stories out there from traders who suffered losses, sold their stocks, and after being emotionally burned by that experience, find out later that the very stock they bailed on changed direction and reached record highs.
This will not happen to every stock obviously but all stocks will go up and all stocks will go down. If you quit after your first loss, you are depriving yourself of the opportunity for real success.
On a similar note, you need to PRACTICE TRADING virtually or even on paper before going to the market with actual dollars. This will give you a feel for how the market changes and flows and how stocks behave.
There are resources available to help you with this which we will list shortly but the primary way to practice is virtually and the secondary way to practice trading is with a historical replay tool.
Third best piece of advice we have for you today is to IGNORE EVERYONE. More often than not, people trying to feed you information and opinions on stocks and the market are people who actually know very little about it. Beyond that, information overload will do nothing but complicate your decision-making process.
News channels and experts will hype their best guesses all day long but in the end, their opposing opinions on the status of the market or any stock within it will only cloud your own instinct and judgment. Keep trading simple and cut out the clutter and noise around you.
TOOLS AND RESOURCES
By now you understand the key players in the stock market, you understand that it’s not complicated and that it’s even probable that you’ll make money there. You also have our best advice to get started trading so now it is time to give you some helpful tools and resources.
As stated earlier, Tradesmart University does not have an official broker and we do not get paid to endorse any broker. The following is a list of some of the brokers we do like.
- OptionsXpress (www.optionsxpress.com)
- Think or Swim (www.thinkorswim.com)
- TradeKing (www.tradeking.com)
- TradeStation (www.tradestation.com)
- Questrade – for our Canadian audience (www.questrade.com)
One of your primary jobs as a trader is to analyze your trades. You NEED a good charting software program in order to do so. There are free options out there but you really get what you pay for with those. Brokers offer mediocre charting software so we wanted to give you some better options.
- TradeLyon (www.tradelyon.com) – BY FAR THE BEST!
- Motive Wave (www.motivewave.com) – runs on a Mac
- eSignal (www.esignal.com) – great but expensive
- TradeStation (www.tradestation.com) – requires a large account
- Free Stock Charts (www.freestockcharts.com)
- Trading View (www.tradiingview.com)
Repeat after me: Tradesmart University!
We have over 600 training videos available on-demand and our completely unbiased opinion is that we are the best! : )
Virtual Trading Resources
Virtual trading is your key to real, hands-on learning and understanding the stock market. It’s one of the best tools available to modern traders! Ideally, this is something that should be provided by your broker. The following virtual trading options are our suggested starting places.
- V-Trading with OptionsXpress
- Think or Swim
Hopefully, you found this information helpful and this has given you a basic understanding of the stock market, how it works, and how you can get started trading.
To be successful trading in the stock market, you need to set up brokerage account with virtual trading and download a TradeLyon Trial at TradeLyon.com or get another charting software. Also, you need to keep learning!
WE’RE HERE TO HELP! SEND ALL OF YOUR QUESTIONS AND INQUIRIES TO INFO@TRADESMARTU.COM.
Remember to share this blog series with your friends so they’ll finally realize that you are the brains of the bunch.