(1) Set Up a Brokerage Account
Setting up a brokerage account is the first step to stock trading since you cannot buy and sell securities without one. It’s not a difficult process, but it does require some research in order to find the best deal. Some of the main players are ETrade, TD Ameritrade, and TradeKing, among many more.
Things to consider before committing to one over another are commissions & fees, tools, education, customer service, mobile trading capabilities, and the overall platform. Some have a minimum deposit that needs to be taken into account as well. “Sign-up bonuses” & “30-90 day free trading” offers are also common and vary from broker to broker.
As a beginner, virtual trading is also important in order to practice your strategy with a “fake” account. This is also known as paper trading. I highly recommend this approach if you don’t have any experience in the stock market.
(2) Choose a Newsletter & Alert Service
The high-quality Wall Street newsletters are hard to come by, but the right one can take you farther than you’ve ever imagined. In my opinion, there’s really no better opportunity to learn the intricacies of trading. Taking my #1 recommended newsletter, Jason Bond Picks, for example, you won’t typically find a small cap swing trading strategy being taught by someone who backs it up with real money.
Small caps are highly volatile & swing trading involves capturing rather large gains (5-25%) within a few days. This is my preferred strategy because it protects you from long-term market downturns and the gains are ideal. It’s the perfect middle-ground between day-trading & long-term value trading.
A top-notch newsletter should provide video lessons, daily watch lists, a chat room, and real-time buy & sell alerts. As a beginner, the education alone is worth the subscription fee for the first few months. Additional gains in your portfolio are an added bonus. If you simply apply what you learn in the video lessons, keep an eye on the stocks on the daily watch lists, learn from the “family” of traders in the chat room, and follow buy & sell alerts, your chances of success will skyrocket.
(3) Research & Study
Yes, a trading newsletter will do much of the overall market, sector, and individual stock research for you, but you should still be aware of current events happening within the market on a daily basis and be well-versed in popular trading concepts such as technical analysis.
You need an advantage on Wall Street, and a quality education paired with extensive research is what will give you that edge. Most people don’t have time to perform extensive research, which is why the previous step of finding a high-quality newsletter is so important. Even if you work full-time and aren’t available to monitor your trades all day, a service like Jason Bond Picks can help even the busy professionals successfully boost their portfolio.
The simplest way to follow individual stocks is to Google them & click on the “news” tab. From there, you can read up on current deals, acquisitions, sales, ratings, etc. If you want to take it a step further, you can consider a subscription to the Wall Street Journal.
(4) Hit Your Profit Goals With Winning Trades
The culmination of having a brokerage account (your platform for buying & selling stocks), following a newsletter/alert service (your source for training & trade ideas), and doing your own market research, is a highly successful trading strategy that increases not only income, but your lifestyle as well.
Always establish your goals ahead of time and exercise self-discipline. Keep your losing trades small and lock in your 5-10% winners when you have the chance. There is no doubt that trading can be both thrilling and rewarding when you do it right, but as with any investment strategy, there are risks. Nobody can get every trade right, not even experts, but following the right system can allow you to enter trades that work far more often than they do not.