If you are even remotely interested in trading, you have come to the right place. This site is full of educational information as well as reviews to help you through your journey. You do not have to be rich to become a successful trader. There are tons of stories of people turning a couple thousand or even hundreds into millions. Anyone can do it with the right tools. I will provide links to each tool as I break it down into sections with levels to suit everyone’s needs.
First thing you need is a trading account. There are many companies out there and the ones you have heard of the most are likely to be the worst. Honestly, e-trade is terrible. I wouldn’t’ recommend that to anyone. There a couple of things you need to know about trading accounts before you choose which one.
Decide how much you have to lose. That is right I said lose because you should not trade with money you depend on. This causes people to trade with emotion and that just leads to losses. If that number is under $25k which is probably for the majority of people reading this, you will fall under the Pattern Day Trader (PDT) rule. The PDT rule essential is a way the government regulates accounts under $25k from excessively trading (ie losing your shirt). This is good and bad. It’s nice because it prevents you from making impulse trades (sometimes) but on the other hand could cause you to lose an entry or exit because you don’t have a day trade available. Here are a couple of options based on what category you fall under:
- Under $25K – Suretrader, Speedtrader, OptionsXpress, or TradeKing
- Over $25k – Interactive Brokers, Speedtrader Pro, or Multiple Brokers
Once you decide an account that will fit your needs the best, it is time to start determining what kind of trader you will be. This will actually come in time and doesn’t need to be decided right away but you still need to have an idea of the types of trades and who might be best to follow to start.
My top recommendation is to join Investors Underground. You will learn about everything including longs, shorts, charts, and every once in a while Nate has been known to test the option water. But was very rare if I recall correctly. Honestly the traders in his chat room are great. Quite a few have of his members been around for a long time and Nate is always willing to help out. I currently do not subscribe but I follow Nate on twitter and have for a long time. Due to my trading situation and work, I am unable to join chat during the day so it doesn’t make sense to join at the moment. Regardless if you are interested in joining Investors Underground, click here to sign up.
Next we have Tim Sykes. I would recommend his strategy (short selling penny stocks) if you have over the $25k and an Interactive Brokers account. However it really works well when you have two accounts. This allows you to box shares if needed. Tim doesn’t just short penny stocks; he also longs them as well as plays earnings winners following a down day. His strategy works but it is very hard to follow him trade for trade. He has too many subscribers and the stocks he plays tend to be moved a bunch when he alerts because people take action on it. This is in no way a bad review of Tim, I am just explaining what happened many of times to me when I was a member of his subscription. The knowledge he provides in his video lessons his awesome and very helpful but you need to get through the fluff. I.E. if you can deal with the show boating and I am better than you mentality, he is a great teacher. I like Tim pre-profit.ly when he made more money trading then on subscriptions. Even with all that, Tim has made two millionaires with his strategy and I am sure there will be more. It works; you just need to be dedicated.
Additionally Tim has recently started a longer term newsletter that focuses on swing trading. To sign up for either service including applying for the Tim Challenge, click here.
My last recommendation is not based on experience but rather what I have seen over the years. Superman or SuperTrades as his service is called seems to be growing and profiting. He is known for longing low float stocks that relate to current events. For example he will find a company that specializes in something with water in California due to the droughts. It seems to work for him but I question if a lot of it is the constant twitter posts about the company on very little news or speculation. I have my doubts but his earnings are verified so I would be more than willing to give him a shot if I had the time to trade more. I will admit I took one of his trades (the example I mentioned), it was up and down for days but finally spiked a bit and I think I made 5%. I think he bought in a lot lower and I could have as well if I was in his chat. Additionally, he has started trading IPOs as part of his strategy. If you are interested in using SuperTrades, sign up by clicking here.
Regardless of which service you decide to subscribe to, you need a foundation. Basics if you will. There are many claims as to what is the best educational tool to use. I have seen a lot of DVDs over the last couple of years and the basics are the same across them all. I recommend you look at one of the following if not all (Ranked them 1-4 with 1 being the best):
The last thing I would recommend to any trader regardless if they are beginning or have been trading for years, stay transparent. Meaning, not only show or boast about your good/great trades, but your losses as well. It keeps you honest and in the end you become a better trader because of it. The tool I use on the side of my site that displays trades is called profit.ly. You can easily import trades from your broker(s) in order to get advanced statistical information. Check it out here.
There you have it. Those are my recommendations for getting started trading stocks. Weather you had $500 or $50k, anyone can become successful at trading and become financially free. It just takes time, discipline and the right knowledge. Feel free to reach out if you have questions that I can help with.
Full disclosure, I would appreciate it if you do take my advice and sign up for one of my recommendations, that you utilize the links I have provided. I do make a small commission which helps pay for the site and also tells me that I am helping people. Which in turn makes me write more articles and provide more help where I can.