So you’re preparing to enter the world of online stock trading. Congratulations. If done properly, trading stocks can become very lucrative. There is a wealth of information available to those who want to learn about trading. The real trick is finding the true gems in the mountain of books, websites, and training programs you’ll find yourself faced with. Consider a few of the following tips as you get started on your new journey.
Consider Your Lifestyle
There are several different types of trading and each can be categorized based on its style. You need to consider this as you choose a style of trading that matches your own personality or lifestyle. If you don’t mind fast-paced trading that will tie you to your desk and computer for hours at a time, day trading might be a good choice. If you don’t want so spend hours each day looking at your portfolio, you may want to consider longer term trading strategies.
Consider the Best Time of Day to Trade
A lot of experts suggest the best time of day to really trade is in the afternoon – anytime after 1pm and before 2:30pm EST. Why? The morning news has already happened, statistics about the government have already been released, and the market has already shifted based one people’s concerns and fears. Company earning reports have likely been updated, and everyone (including those on the West Cost) is deep into the work day. Along the same line, don’t place orders before opening or after closing, if you’re using a broker. News events and reports that come out overnight could impact the stocks you wanted to trade, and your order may not be what you expected.
Practice on Paper
Always practice before you start investing real money. Seriously. Get out a piece of paper, write down the information about the stocks you’re interested in, place an imaginary amount of money on the line, and check the statistics regularly. Are you making money? Are you losing money? Do you need to learn how to make better decisions or how to better understand the statistics you’re reading? It’s better to find these things out with imaginary money than to lose your hard earned cash.
Get Some Professional Training
There are people and organizations out there who will teach you how to trade stocks. Many have been around for ages. Bulls on Wall Street, for example, has a trading bootcamp – a 4 day mini-course or a 60-day course. Do some research and take a look at the different options that are out there. Ask some other traders what courses they used (and compare those answers to the relative success levels of those people as you make your decision).