Independent stock trading is a risky venture that requires a lot of focus and attention. Squash any ideas about casually trading in your spare time. Be prepared to commit to trading like you would any other full-time job. Then, make sure you understand the difference between a trader and an investor. As a trader, you will not be interested in the intrinsic value of companies. Your goal is to make a profit and you will generally want to do it in short time frame.
1. Do not overestimate yourself.
1. Do not overestimate yourself.
Doing so is the key ingredient in the recipe for disaster. Even if you think you understand the stock market, approach your goal to be a trader as if you are a novice. Invest time studying the markets, learning how and where to conduct research and learning how to recognize patterns. Also, recognize the risk. Remember that some very smart and experienced people trade stocks and lose lots of money. Be prepared for the reality that sometimes losing is part of the game.
2. Select a strategy.
2. Select a strategy.
Like any business venture, being a successful independent stock trader requires some guiding structure. You can develop your strategy on your own or you can one developed by someone else. Before you make the choice, however, you need to decide what type of stock trader you are. For example, you may want to be a day trader or you may be interested in holding Singapore stocks for longer and therefore decide to be a swing trader.
3. Get high speed internet if you do not already have it.
3. Get high speed internet if you do not already have it.
Stock trading is a time sensitive business. Problems such as frozen windows or slowly loading pages can be costly. For best results, DSL is recommended over cable internet service or mobile hotspot connections.
4. Consider opening a virtual account that allows you to trade fake money.
4. Consider opening a virtual account that allows you to trade fake money.
You can find these services free online. Using this account will allow you to get acquainted with the markets and what it is like to be an independent stock trader. Once you feel confident, open a real brokerage account online. Factors to consider when deciding what company to use include the minimum funding requirements, the commission fees and the trading platform's features. You may find that the company that held your virtual account is not the best choice for your regular use. After you have opened the account you will need to fund it. Common methods of doing so include mailing a deposit, transferring money from another account and depositing stock certificates. If you used a virtual account that differs from your brokerage account, get acquainted with the new platform before you begin trading. Make sure you understand the features, tools and costs associated with maintenance and the various types of transactions.
5. Do not feel under pressure to go all-in immediately.
5. Do not feel under pressure to go all-in immediately.
It is best to start by only putting a portion of the money in your account to work. Select and sell stocks according to your Stock Trading strategy and decide whether you are satisfied with it. If so, increase the amount of money you deploy.
Things Needed
- A computer
- High speed internet
- A brokerage account
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