Everybody heard about those millionaires who got rich just by stock trading. Even if you don’t have such ambition (or don’t believe that millions can be made so easily), by trading stocks you can make a decent passive income.
Well, why don’t we all trade and get rich then, right? Of course, because behind a “big win’’ is a big risk, as well. But, you don’t have to invest all of your savings, why don’t start with small amounts of money and see how does it goes?
Now, the real question is: “Where do I start?’’. Keep reading and find not only how to start participating in the stock trading niche, but what are the top 5 tips you should now.
1.Don’t wear rose-colored glasses!
Don’t expect to invest a dollar and gain $1000 immediately. This might actually happen, but with realistic way of thinking you avoid to get disappointed or discouraged. Try to find ‘’imbalanced supply and demand scenarios’’ for your trading baby steps. Don’t risk to lose a lot of money, but try to get the ‘’trading feeling’’ from the beginning. Yes, again, you might actually earn your monthly salary in one day (...or lose it).
After reading the first tip, you probably thought how to find the above mentioned scenarios, right> Well, there are numerous trading courses and trading schools, but you can start right here - on the internet. Study historical examples, follow trading blogs, manuals, videos etc. One of the keys to success is to be well informed and nowadays at least that is easy (and can be free).
3.Find an (online) broker!
Like I mentioned, today everything is so available online so everything you need to start trading (beside money) is an online trading platform. The choice is wide, it is up to you to research and find the best solution for you. The best tip I can give you when seeking for a trading platform is to go local, especially if you are not trading in your domestic currency. So, for example, if you are based in Nigeria, chose a Nigerian trading platform that allows you to trade in Naira, or an Asian one that supports currencies such as Yuan and Yen if you trade from China and Japan. That way you will at least eliminate the currency changing risk.
4.Stay patient and disciplined!
This fact might surprise you, but the most successful day traders don’t trade every day! But, they are always ‘’in the game’’, reading, checking the market and seeking for opportunities. And you won’t (easily) find one if you are not patient.
Like most of the time, discipline is the key to success. So forget about impulsive behavior! Ambition is one thing, but when it comes to trading - greed is your worst enemy.
5.Learn from experience!
Losses in stock trading are daily, but ALWAYS make sure that you followed your strategy and your rules and improve them with simply learning from your mistakes.
Don’t be afraid to ‘’push the button’’, believe in yourself but have in mind these tips!