Make Money Trading | How to make lots of money through Trading ? - FACE INSIDER

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Wednesday, November 14, 2018

Make Money Trading | How to make lots of money through Trading ?

MAKING MONEY ONLINE IN TRADING 

             
Research current trends. There are many reputable sources that report on market trends. You may want to subscribe to a stock-trading magazine such as Kiplinger, Investor's Business Daily, Traders World, The Economist, or Bloomberg BusinessWeek. .[1]
  • You could also follow blogs written by successful market analysts such as Abnormal Returns, Deal Book,
                                                                                                                                                                         
1 Getting Started
  1. Research current trends. ...
  2. Select a trading website. ...
  3. Create an account with one or more tradingwebsites. ...
  4. Practice trading before you put real money in. ...
  5. Choose reliable stocks. ...
  6. Buy your first stocks. ...
  7. Invest mostly in mid-cap and large-cap companies. ...
  8. Monitor the markets daily.


  
                                                    


Research current trends. There are many reputable sources that report on market trends. You may want to subscribe to a stock-trading magazine such as Kiplinger, Investor's Business Daily, Traders World, The Economist, or Bloomberg BusinessWeek. .[1]
  • You could also follow blogs written by successful market analysts such as Abnormal Returns, Deal Book, Footnoted, Calculated Risk, or Zero Hedge.[2]
2

Select a trading website. Some of the top-rated sites include Scottrade, OptionsHouse, TD Ameritrade, Motif Investing and TradeKing. Be sure that you are aware of any transaction fees or percentages that will be charged before you decide on a site to use.[3]
  • Be sure the service you use is reputable. You might want to read reviews of the business online.
  • Select a service that has amenities such as a mobile phone app, investor education and research tools, low transaction fees, easy to read data and 24/7 customer service.[4]

3

Create an account with one or more trading websites. You’re unlikely to need more than one, but you may want to start with two or more so that you can later narrow your choice to the site you like the best.
  • Be sure to check out the minimum balance requirements for each site. Your budget may only allow you to create accounts on one or two sites.
  • Starting with a particularly small amount, like $1,000, may limit you to certain trading platforms, as others have higher minimum balances.[5]
4

Practice trading before you put real money in. Some websites such as ScottradeELITE, SureTrader and OptionsHouse offer a virtual trading platform, where you can experiment for a while to assess your instincts without putting actual money in. Of course, you can’t make money this way, but you also can’t lose money![6]
  • Trading in this manner will get you used to the methods and types of decisions you will be faced with when trading but overall is a poor representation of actual trading. In real trading, there will be a delay when buying and selling stocks, which may result in different prices than you were aiming for. Additionally, trading with virtual money will not prepare you for the stress of trading with your real money.
5

Choose reliable stocks. You have a lot of choices, but ultimately you want to buy stock from companies that dominate their niche, offer something that people consistently want, have a recognizable brand, and have a good business model and a long history of success.[7]
  • Look into a company's public financial reports to evaluate how profitable they are. A more profitable company usually means a more profitable stock. You can find complete financial information about any publicly traded company by visiting their website and locating their most recent annual report. If it is not on the site you can call the company and request a hard copy.[8]
  • Look at the company's worst quarter on record and decide if the risk of repeating that quarter is worth the potential for profit.[9]
  • Research the company's leadership, operating costs, and debt. Analyze their balance sheet and income statement and determine if they are profitable or have a good chance to be in the future.[10]
  • Compare the stock history of a specific company to the performance of its peer companies. If all technology stocks were down at one point, evaluating them relative to each other rather than to the entire market can tell you which company has been on top of its industry consistently.[11]
  • Listen to a company's earnings conference calls. First analyze the company's quarterly earnings release that is posted online as a press release about an hour before the call.[12]
6

Buy your first stocks. When you are ready, take the plunge and buy a small number of reliable stocks. The exact number will depend on your budget, but shoot for at least two.[13] Companies that are well-known and have established trading histories and good reputations are generally the most stable stocks and a good place to start. Begin trading small and use an amount of cash you are prepared to lose.[14]
  • It is reasonable for an investor to begin trading with as little as $1,000. You just have to be careful to avoid large transaction fees, as these can easily eat up your gains when you have a small account balance.[15]
7

Invest mostly in mid-cap and large-cap companies. Mid-cap companies are those that have a market capitalization between two and $10 billion. Large-cap companies have market caps larger than $10 billion, while those with market caps smaller than $2 billion are small-caps.[16]
  • Market capitalization is calculated by multiplying a company’s stock price by the number of shares outstanding.[17]

                                                                              

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