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How to Make Money Trading Stocks at Home

How to Make Money Trading Stocks at Home

With so many people either out of a job or being stuck at home, a lot of people are looking into how to make money trading stocks at home.

And it makes sense because it’s something that you can do from the comfort of your own home. Or from virtually anywhere that has an internet connection for that matter.

Because of this, there are thousands of people who are all looking to learn how to trade stocks.

But before you jump into trading online, there are a few things you need to know.

How to Make Money Trading Stocks At Home – What You Need to Know

In their excitement to start trading stocks online, so many people rush into things. And they end up losing money.

Sure, there are stories of people who have made thousands off of their first stock trade. But that is nothing short of beginner’s luck. And it certainly isn’t the typical experience of beginning traders.

But it doesn’t have to be that way.

And if you follow the steps I outline here, you’ll be setting yourself up for long-term success.

Decide on the trading style that you want to use.

Do you want to be at your computer all day as you day trade? Or do you want a little more time to do other things by using more of a swing trading style? Your decision will have major implications. It will not only affect how you set up your trading account, but how much money you need to get started and how much time you end up spending as you trade. I recommend choosing a trading style that reflects your personality. If you’re an adrenaline junky and love constant action, day trading might be for you. If the constant ups and downs of the trading day would be torture, then maybe swing trading is for you. For more information on the different styles, you can read the article I wrote here.

Sign up for an online broker.

One you’ve decided on your trading style, you need to choose an online broker.

If you’re a day trader, brokers require a certain amount of money deposited into an account. They also make you follow certain rules. If you’re day trading, you’ll also need to make sure the account you sign up for will give you real-time market quotes. You can’t day trade with delayed quotes.

If you’re going to be trading options, your broker may have higher margin requirements than just buying or selling stocks. If you’re trading simple directional options trades, the requirements are very low.Β (This is one reason why my team and I offer option trade alerts inside our membership website “The Empirical Collective”)

So make sure you do some research and read the fine print before signing up. I personally use Questrade and they’ve been great. So if you’re able to I recommend you sign up with them by clicking this link.

Get a good computer.

Whatever online broker you sign up with will give you the minimum requirements needed for your computer to run their trading software. But regardless of what they ask for, I recommend getting as good and fast a computer as you can afford. Also make sure you get a nice monitor or a screen large enough that you can properly see the stock charts that you need in order to trade. I’d just get something good from Amazon, which you can do here. FYI if you purchase through this link I may receive a commission as I participate in the Amazon affiliate program.

Educate yourself.

Aside from hands’ on trading experience, education is the most important thing you can do if you’re just starting out as a trader. I recommend reading books that are focused on your trading style. If you’re looking into day trading, I suggest reading “The Day Trading Manifesto.” If you’re wanting to learn about trading options, see “How to Make Big Money Fast Trading Options.” Beyond that, I’d recommend you head over to Amazon again to get some other great trading books.

Become an apprentice.

Even though at this point you’re probably reading and educating yourself on how to go about trading, there is no replacement for real-world hands’ on experience when it comes to learning to trade stocks.

And this is why I highly recommend that you invest in your trading education and sign up for some form of trading alert service.

Again, the service that you sign up for should reflect the trading style that best suits you and trades the securities you are interested in trading.

For simple, easy to follow weekly directional trades, I recommend that you sign up for my option swing trade alerts through “The Empirical Collective” here.

If you’re more interested in trading (and more day trading) penny stocks, there is only one person I would ever recommend you looking into and that’s this guy here. If neither one of those are interesting and you want to stick with regular stocks that are ready to skyrocket in value I’d recommend the trade alerts found here. This service is more of a swing trading style as well. Actually, if you’re looking to find stocks that are ready to shoot higher in value, sign up for my email list (see the right hand side at the top of the page for where to sign up) and I’ll explain how you can do just that.

Be patient.

You’ve got to go easy on yourself and give yourself enough time to learn and develop as a trader before you expect to see results. So many beginning traders feel the pressure to make big money right away and they rush into things – often with disastrous results. You can avoid a lot of the common mistakes new traders make by signing up for a trade alert service, but you have to keep in mind that nobody will ever have a 100% win rate. Suffering losses along the way is just part of it all. You need to approach trading with a certain understanding that this is a long-term endeavor and not an immediate quick fix. This is trading, not gambling πŸ™‚

can i earn a living trading stocks?

So there you have it. 6 steps you can take to learn how to make money trading stocks at home. If you’re still undecided on where to start, I suggest you buy a few books and educate yourself. By doing this, you’ll be able to get a feel for whether or not you really want to learn to trade stocks, before you invest a lot of time and money.

Commonly asked questions

How do beginners make money in the stock market?

A beginner is likely to be most interested in buying stocks that are considered safe bets. There is no one “stock that always makes you money”, but the safest mutual funds invest in an array of stocks, bonds, and other investments instead of just one specific industry or sector. For example, you might choose a diversified global growth fund (such as Vanguard Growth Index Admiral Shares) or index fund (such as VTIAX).

Once again, there’s no such thing as “the best” stock. And it’s not even possible for investors with small portfolios to make 100% guaranteed returns every year because the stock market can’t offer that promise (unless they happen to buy Google when it first went public).

Can I make money trading from home?

Yes, you have to have the right system though.

Do you want to be able to trade from home? Then set yourself up with a simple trading system that only needs two inputs – trend and time. You’ll find what’s trending at any given moment in Bitcoin or forex markets because these are updated continuously. Set your own profit goal for the day, week or year and track your progress with percentages so you can see where you stand much more easily than by counting dollars or pips. You could even automate it if that’s your thing!

Can you make good money trading stocks?

No one knows for certain if you will make good money trading stocks. Some things that might affect this though are how much of a deposit you have with the stock market and what your skills as a trader are.

There’s always a chance to lose money when taking risks, so only invest as much as you can afford to lose. If you do become involved in day trading, it is best to have at least $10,000 per trade before reinvesting those profits for more risk – then people who practice this strategy successfully usually need around six months or more to turn a profit. That being said, even if it takes longer than anticipated due to downturns in the economy or instability in foreign markets.

Is trading stock a gambling?

Trading stocks is a form of speculation, which is not the same as gambling. Gambling implies that one needs to rely on luck to make money rather than skill. Even though speculation may be risky, it isn’t purely reliant on luck due to personal knowledge or research.

In gambling, there is no intellectual interest in what you are betting your money on. This means you have no control over whatever outcome may come from your bet and you have to depend solely on chance for an outcome in order for it to be a gamble.

Is getting into stocks worth it?

Getting into stocks can be a risky endeavor, but if you’re willing to put in the parameters of your risk tolerance and you’re willing to follow market trends closely, then it’s worth it.

Information to include in the answer: Stock markets and their associated risks change constantly and what was true even last week may not be true next week. Variable like economic circumstances, monetary policy changes (such as the Federal Reserve’s goal of increasing interest rates) and international trade agreements all make investing difficult, but we can seek some guidance using Dow Theory which is based on patterns observed in common stock prices during previous market cycles for lessons on how to manage investment portfolio returns.

Is trading hard to learn?

Yes, it is hard to learn. Follow these steps to get started with the right knowledge necessary.

-Research different tips and get a feel for what you are reading before getting too invested in any one letters game plan

-Make an excel list of brokers

-Join some online forums or sign up for trade alerts that specialize in stock tradingΒ 

-Work with your resources; research which books sellers provide honest reviews on, read reviews on every blog post without exception -Start with small stakes until you understand how certain funds like to behave when markets crash (ETFs are great because they diversify risk)

Is trading a good career?

Career in stock trading can be rewarding if approached the right way. πŸ‘¨β€βš•οΈ

Start trading just like any businesses would: with results-oriented trading, you could make money and create an excellent career path for yourself. Yet most trders never reach this level. πŸ“ˆ

Why do most traders never succeed?

Answers for success vary and depend upon degree rath er than magnitude of achievement. Most traders do a decent job of managing risk while increas ing potential reward with trading strategies; but without being able to do this at a high-level one cannot succeed in becoming successful traders. πŸ’°

As with any profession, everyone approaches trading differ ently. Some may “struggling,” while others do it to make extra cash on the side or simply because they enjoy it; there are even those who write articles for blogs and websites with millions of readers per month who just write because it brings in income; others provide content for blogs which bring them extra traffic and viewers each month. πŸ“

Many traders would benefit from attendinng some form of trading course or following along the trade alerts of an experie nced financial trader. πŸ‘¨β€πŸ’Ό

 

How to Make Money Trading Stocks at Home