Learn How To Trade Stocks With Experts
I hope that title caught your attention. There is so much you can do to prepare for success in day trading. No matter how much you prepare and practice though, many things can still go wrong during a trade. How to trade stocks and you may expose your money to risk with every single trade. But, there is one unforgivable deadly day trading sin you must never commit. Never. Ever. It’s called chasing the stock.
How to Trade/How to Trade Stocks
Last month, a friend called me up and said, “Andrew, I hate my job. How much would you charge me for a few hours of your time so you can teach me how to trade stocks?”
“You’re kidding,” I thought to myself. A few hours to learn how to trade? Really? In just a few hours?
To learn how to trade stocks or how to trade anything else on the market – including currency, commodities and contracts – will be a long-term commitment. There are many books and online courses that promise you will make money from “day one”, or after a week or a month. Don’t be gullible. Like anything in life, if it sounds too good to be true, it is.
Here’s what I told my friend: day trading is not a strategy to get rich quickly. To learn how to trade stocks is very hard work. It’s not a get rich quick scheme. It can be profitable but it takes time to learn how to trade.
There’s so much involved in learning how to trade. You have to learn how to control your emotions and stress levels. You have to be disciplined and focused. You have to study and practice and practice some more. To learn how to trade stocks, you have to master one strategy – in your simulator – before you start trading with your real money. To learn how to trade successfully, you must learn how to focus on quality instead of quantity. Successful day traders only make a few trades each day. They’re strategic and disciplined.
To learn how to trade, you should join a community of traders, and watch how successful day tra`ders plan their trades. And as you learn how to trade stocks yourself, don’t be afraid to ask questions in the community’s chatroom or to share your own thoughts. You also need to follow social media, such as StockTwits, to learn what’s trending and what news is breaking that might impact a stock’s price.
To learn how to trade stocks, you also must learn what not to do. Don’t over trade. Don’t give your broker lots of commissions. Don’t chase stocks, which means don’t purchase stocks when their price is increasing rapidly. To learn how to trade, you must learn how to wait, patiently, for a solid opportunity. At times, smart trading is to not be trading at all.
In addition, to learn how to trade successfully, you should keep a journal in which you record each trading day. What precisely went well, what went wrong, how you were feeling, did you enter the trade properly, exit properly, stick to your strategy, etc. And then review your journal from time to time and learn from it.
A final thought. To learn how to trade stocks, focus on the process of trading and not on the money. Focus on “doing the right thing”. Look for excellent opportunities and then trade them. To learn how to trade stocks requires mastering the process of trading and the fundamentals of a good trade. Money is just the by-product. And, as I told my friend, to learn how to trade successfully will take more than just a few hours.