A broker is where you will actually be putting in your orders to buy and sell stocks. Some come with software, some you have to pay monthly, and some have extra fees. Check out this link for a list of brokers. Here are some things to look out for:
- Opening requirements
- Fees - Especially on shorting or buying pennystocks
- Software - Included or extra charge
- Level II access - Free or extra charge
- OTC shorting / buying allowed?
- Shorting allowed at all price levels?
You can fund your account through credit card or bank account. I would highly recommend starting with at least $2k but its up to you as long as you find a broker that allows any deposit.
Step Three - Sign up for TimAlerts
TimAlerts not only sends you watchlists and when to buy and sell stocks, but also teaches you how to find and trade those stocks on your own. If you don't already know how to trade stocks then this is the place to go. Follow this link to sign up for TimAlerts .
Step Four - Find your strategy
There are multiple strategies that you can trade. Day trading is for people with a little more time as you have to be able to buy and sell the stock in the same day. Swing trading you hold the stock for a few days, and momentum trading you trade for a few months. Depending on the amount of time you have to trade pick accordingly.
Step Five - Observe
Once you find your strategy, you need to observe the market and make predictions. Once you can consistently pick the right plays, then dive in.
Step Six - Cut Losses & No Emotions
You will lose money in the beginning more than likely, so cut your losses. It is ok to be wrong, but just admit it and get out while you still have money left. Don't let your emotions influence your decisions. Look at the price action, support, resistance and make decisions based on that.
Step Seven - Document your trades
Create a blog or a spreadsheet documenting your trades. Keep track of day, time, entry, exit, profit/loss, and notes. Look back at these so often and look at your trades and learn from your mistakes and successes.
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