==== ==== Please check out Trading Pro Edge System for great tips on Stock Market Trading for Profit. www.tradingproedgsystem.com ==== ====
Trading stocks for a living is both exciting and extremely stressful. You can make a lot of money, but you can lose it, too. Trading stocks for a living is possible, but only with the right preparation. Build a Financial Reserve You can't trade if you can't pay for stocks. You need free cash to buy stocks. Not only that, you need money to support yourself until you start turning a profit. It's also good to have backup cash just in case. Spend some time saving as much money as possible. Some traders say you need at least $25,000 to start trading, some say more. This is just the money you'll need to pay for actual trades. Save up at least 6 months worth of living expenses on top of that, 12 months or more if possible. Education While you are saving up as much money as possible, start educating yourself about stocks and trading. Books are a great place to start. Your local library is full of free information to get you started. Learn general stock information if you're rusty or unfamiliar and then build up your knowledge of technical analysis, charts, and stock trading. There are many books on the market detailing these practices. Keep reading and studying until you've mastered all the principles required for day trading. As a trader, you will never stop learning. Keep educating yourself throughout your career, and learn from experience. Practice Practice should be part of your educational strategy. It's a way to test and develop your skills. You can try investing in the real stock market, but don't quit your day job yet. Sign up for a stock market simulation game such as Wall Street Survivor. You will receive $100,000 of fantasy money that you can "trade" real time in the stock market. With a simulation game, you won't make real money. You might get upset if you make big gains that don't show up in your bank account, but don't get frustrated. This is an important step to get a feel for how things work. You'll be glad it's fantasy money if you realize big losses. Strategy
Use all the information and knowledge you gained from the previous steps to set up a strategy. Refine that strategy over time, but stick to it. This might seem contradictory, but if you make smart decisions, it will work out. If you set up a strategy and stray from it to take advantage of "sure gains", you could fall into trouble. However, if you notice parts of your strategy can be improved, do so. Get a Broker As a short term trader, you need a broker. A good broker for a trader should have the following characteristics:
cheap trades real time trading excellent customer service all the necessary services you require (ie. extra trading hours, limit orders, option trading, etc.)
Shop around for a good broker to avoid paying for it with expensive trades or down time. Look up reviews from existing users for honest opinions. Start When You're Ready Some people think they want to trade stocks but never really feel ready. This isn't an easy career. If you're too afraid of the risk, stay away. However, if you're fully prepared and ready to take on the risk, get started and take it seriously.
Mike Meyers is a long time private investor, with extensive experience using a desktop stock ticker, stock quotes and different stock trading tools - among them the free desktop stock tickers.
Article Source: http://EzineArticles.com/?expert=Mike_Meyers
==== ==== Please check out Trading Pro Edge System for great tips on Stock Market Trading for Profit.
www.tradingproedgsystem.com ==== ====