I know, everyone is afraid to start trading because it feels like gambling or a waste of time and money, I mean if it was that easy then more people would have traded for a living, right? Right, but the thing is there are enough people who trade for a living and make good money from trading stocks and foreign currencies with Forex only you don't know them because you don't trade, so you don't interact with them on the same sites, blogs, forums or chat. So, what do you hear everywhere you go?
You hear people that tell you stop day dreaming, keep working your day job, grind at work from 9-5 and if you want to earn money you have to work at a decent job. Well, they are all correct because you can keep your day job and you need to stop day dreaming but you should also know that you can make good money from home using your computer if you trade smart and follow some basic and important rules to begin with. So, let's start…
Trading takes time and making money from trading takes even more time, but if you're dedicated you'll understand the world of stocks, Forex and the market pretty fast and eventually know to predict where it is going during the trading day, thus knowing when to buy and sell to maximize your profit and limit your loses. Yes, you will lose too because no one profits all the time, but you'll learn to profit more and limit your loses and that will bring you good money. You see, there are a lot of stocks and Forex trading strategies you'll be able to find online and that's not a bad thing at all. Start reading them and adopt the ones that suit you as a trader whether you're a long term trader, short term or day trader because there is no right or wrong strategy, there is the one that suits you the best.
Here are a couple of ground rules I can give you here quick before you start, but know there is a lot more to learn and master before you master this world and become an expert, yet the possibilities are endless and the money is there to pick.
1) Trade with an amount of money you're willing to lose
You read it right. You're not about to lose it, but in your state of mind I want you to know that things can happen and so, never trade with all your money and have an amount you can trade with and sleep at night at the same time if you had some bad trades because for now it will be money from the side until it becomes your primary income.
2) Combine technical analysis with fundamental trading
Always read the news and stay up to date because every announcement or news will affect the market and you need to know when to buy or sell, enter or exit a position. Also, learn to read charts and the more you look at charts and read them the easier it will get for you until you'll be able to read it in 2 minutes tops. Combine fundamental with technical analysis, this way you'll be the perfect trader.
3) Always trade with your head
Never trade with your gut feelings no matter what. This is not gambling and no casino, it's your money and in order to make more of it you should always do your homework and know which stocks to buy, sell and at what points. Always work smart.
These are only a few basic but important rules for the beginner and first time trader. Search online for more and always learn, always watch and always try to understand why the stocks went up or down. With time, experience and trial and error you too will master the market and profit enough to make it your primary income.