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How to start in trading

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  • Fxmaster
    Market wizards a good read +1. Highly recommend for whatever trading you want to do, forex, stocks, crypto etc

    Leave a comment:

  • Wall Street Forum
    started a topic How to start in trading

    How to start in trading

    One of the questions I get asked most about stock trading is how to start. Its actually pretty simple and I'm going to show you step by step how to do it.

    Step 1: Scrape together $2000. However, you have to get it just get it. Use your tax refund, work extra hours at your job, get a temporary second job. Whatever it takes.

    Step 2: Open a brokerage account. Use any of the approved brokers on our broker list

    Step 3: Fund your account. Each brokerage has different procedures for doing this but they all basically take money from your bank account(either via ACH transfer or check) and put it into your account. Now you have money to trade with.

    Step 4: Start educating yourself.
    Get a account. This is the site you’ll use to analyze stock charts.

    Read Market Wizards by Jack D. Schwager

    Watch as many videos by The Daytrading Rockstar on youtube as you can.
    Google all the info you can on stock trading

    Step 5: After you've done those things start to formulate ideas for your very first trade. Once you pick a stock, think about all the reasons why you’re wanting to buy it. Once you feel like you have picked the best possible candidate for your first trade go ahead and buy.

    Let’s say you’re looking to buy XYZ stock. You’ll go into your brokerage account and get ready to buy. XYZ stock is trading at 20 dollars per share so you do this simple equation $2000/20. You get 100. That’s 100 shares you can buy. Enter your order as 99 shares so as to not step on the commission your broker charges you to buy and sell. Enter a “market order”. Click buy and that’s it. Now you have to wait for either a profit or loss

    Note: With an account value of $2K you won't be able to day-trade(in and out of a stock in the same day) so you’re going to start out as a swing trader. A swing trader buys a stock, holds it for a few days, then sells for a profit.

    The $2K amount is just an average number. The amount you start with needs to be an amount that you would be upset about losing. It forces you to make good decisions with the money. If you were worth a million dollars starting with $2K in the stock market wouldn’t be a good idea. It would feel like monopoly money. Just keep that in mind when determining what amount to start with.

    Be aware that these early stages in your trading career are just to get your feet wet and not meant to turn you into a millionaire overnight.

    Feel free to run your first trade idea by Sniper before you buy.