Best Investments for Beginners

What is Stock Day Trading?

Stock day trading is not your traditional stock investing.  Instead of buying a few shares of stock and letting them increase in value over 6 months or over the next few years, you will buy stock and sell much faster.

Stock day trading is a form of short term trading.  Many traders use software to tell them when to buy or sell based on trends.  They look at charts and guess that it will move a certain way based on where it’s been and previous trends.

Trading is often used as a full time job.  You work when the markets are open.  You can do really well, break even, or do bad.  Of course, breaking even is really bad too because you can’t support yourself with nothing.

Who can Use Stock Day Trading?

Technically, just about anyone can try to trade stocks, but it takes a lot to be successful at it.  Of course, you need the right resources as well.  First of all, you need to have time and the right time.  If you work from 9 to 5, you won’t be able to trade unless you trade on a foreign exchange that is open when you’re available.  The more time you have available during trading hours, the better.  Ideally, this will be something you can do full time.

If you plan to be a full time trader, you should have back up resources.  Don’t quit your day job with nothing in the bank.  Try to give it a try while you are working and save at least 6 months of living expenses just in case.  This way you will be covered even while you aren’t making a profit.

You also need to preferably have internet access so that you can set up a brokerage account and trade.  Trading software can be a great help.  Finally, you need to know what you’re doing.  Not only do you need to understand the stock market and investing, but you need to understand how to trade specifically.  Fortunately, with a lot of research and studying, you can teach yourself, if you have the self-discipline.

If you want to try your hand at stock day trading, make a plan and get to it.  Spend a few months saving your money to invest and to have as back up support money.  You need money to buy food and you need money to invest.  The more money you have, the better off you’ll be.

In the meantime, buy or borrow some books on stock day trading and investing.  Learn everything you can and build up a strategy.  Start using a free stock market trading game (you can sign up for one below) to help you practice what you are learning before you are ready to invest in the real markets.

When you’re ready to invest, start doing it part time before you quit your job, if you can.  When you feel confident, you can start stock day trading as a full time job.

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