I know many people have this preconception that getting in the Stock market and Investing and Trading stocks can be a one way trip to the funny farm or poor house ( sometimes they can include both 😉 )
But trading stocks if done properly can give you some consistent income ( I know because I do it regularly) maybe even income amounting to a full time gig. But lets not take it that far at least for now.
First of all, if you want to trade stocks you should NEVER start out with an amount of money you cannot afford to lose. Heck, I have horror stories where people have taken out College funds and 401Ks to start trading.
Well folks this is ridiculous. Please do not do something this wreckless. It will haunt you for many years to come if you do it.
I would start out with maybe a few grand . All this will be is a starting amount that you can get your feet wet in the world of trading. I would consider it a tuition of sorts because there is a good chance that you could lose this small amount in the learning process. But better to do this then start out with a $20K account and blow that. Because that has been done by many before. Believe me.
I know I personally did paper trading and went about learning from others before I put any money into trading. When I did , I started off with a measly $500. But thru the knowledge I had learned and the studying I did , I turned that $500 into over 6K in 2 months.
My style of Trading then and now is Swing Trading Stocks ( Check out my Story at this Link)
Now I do not think that this was automatically happen in your case. Honestly, the chances are they will NOT.
But I believe over time people can become better and better at Trading just through experience and studying.
The main thing to remember is to develop a trading system over time that will give you rules to abide by when entering and exiting a trade. And you need to learn the basics of how the Stock Market works and what Stocks to eye for a potential trade.
I highly recommend William O Neil’s book “How to Make Money in Stocks” as the best information for learning about making money in the Stock Market.
I will leave with one last thing that each of you who are considering to Trade Stocks isthis : Always cut your loses quickly and NEVER be emotional about your Loses or your Wins. Keep a poker face when you trade.
Or else your emotions will take over and you will be a sloppy and unsuccessful trader.
It is really funny ,but I continue to tell people that the most successful traders are the ones who have a blank expression on their face; in other wards you cannot tell if they are up $2K for the day or down $2K for the day. That is a true poker face 🙂
Anyway, Remember to read the book I suggested before you put any money in the Stock Market or do any kind of swing trading.
And go to my own Story to learn more in the Link I provided above.