Stock Trading for Beginners: Practical Ways to Learn Stock Trading

 Starting off with stock trading basics, new traders have a lot to learn while preferably having the ability to combine practical attempts of stock trading (hopefully successful) and a vast base of knowledge collected on the subject of mastering stock trading.

As a beginner, a new trader needs to be aware of the fact that stock trading starts from learning basics, thus we are presenting some neat ways on how to learn stock trading.

Become Comfortable with Trading Tools

One of the best ways to start learning how to trade with stocks is to get more comfortable with some simple trading tools. Trading tools alongside with the research available on online stock broker accounts should become one of the main starting points for you as a new trader.

So, it is recommended to find an online broker and have an account opened there in order to be able to get more comfortable and familiar with the available trading tools, while having access to research exclusively offered to clients. Make sure you are able to find an adequate online stock broker and make an account.

Educate Yourself

Make sure you are browsing through the wide offer of e-books and books on the subject of stock trading. Going for books instead of taking classes and attending seminars makes up for a better choice because you can adopt information under your own terms and under lower prices.

Do Your Research

For transforming into a fully ready trader, although new to the business, it is recommended read articles that include explanations on the trading terms, offering advice and tips, as well simplifying stock trading for beginners. You are already doing your part of the work by reading this article. All information that you might need on the subject of how to start trading can be easily found on the internet, so dive in.

Embrace a Role model

History is our teacher, so you can do a little research on big names in stock trading throughout the years, like George Soros, Warren Buffet, John Templeton and others. By studying their methods you can find much useful information on how to become successful in stock trading by following the example of greats.

Find a Mentor

A mentor can practically be anyone who can in traduce you to trading strategies, techniques, teach you how t read charts and be willing to answer your questions and any doubts you might have on the matter of trading. You can also visit multiple forums regarding stock trading and ask questions there as someone will always be willing to provide some help in form of mentorship.

Follow up with the Market

In order to be able to become a successful trader you need to know how to invest, and the best way of knowing what your first and next moves will be is to follow up with the market, preferably in a frequent manner.

You can follow the market by staying in touch with what is going on with prices, and perhaps the best way of staying informed is to take a tour with Google Finance or Yahoo Finance. As an alternative way of following the market, you can start reading Bloomberg or the Wall Street Journal. There you will find the freshest news and analysis straight from the market.

Practice Trading

One of the best ways of learning is to put your knowledge to practice. Even failing comes as a viable option, if not frequent, as you will be able to learn from your mistakes based on your errors.

You can use a trading simulator for practicing so you would be able to learn how trading practically looks like when applied.

However, you can also practice through making your first trade with the online brokerage account that you have previously made. You can always start with a small trade and a minor investment in order to test your current abilities.

However, you must have in mind that proper portfolio allocation is crucial for success, so if you feel insecure enough about making the first live trade with your account, you can stick with the trading simulator until you feel you are ready.

In the meanwhile, you should make sure that you are well informed and educated in the terms of knowing basic trading techniques, chart reading, and strategies.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
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Pros and Cons of Swing Trading and Day Trading: Which Strategy is Better?

When it comes to picking trading strategies, it usually all comes down to making a choice between day trading and swing trading, which are some of the most popular trading mechanisms.

As far as the choice concerned, traders who are looking to earn some profit, in the long run, would rather go for swing trading while those who are looking for short-term instant gains are usually turning to day trading as their favorite strategy of choice.

While day trading requires a certain level of knowledge in trading, like chart systems and market analysis, while preferably demanding trading experience and swing trading requires extensive researching and high margin requirements, both strategies have ups and downs to it.

That is why we are analyzing both strategies, presenting you with both, pros and cons of day trading and swing trading.

Day Trading Strategy Explained: Pros and Cons

Day trading is a trading strategy that involves earning profits on a daily basis while utilizing specific charts and embracing the power of a solid market analysis. Day traders are usually scoring on daily stock losses and market dips, managing to spin the market trend to their advantage.

Pros

  • Potential Daily Profiting – what makes day trading extremely attractive to traders is the fact that this strategy allows a daily By trading with multiple stocks at the same time, a day trader never keeps his investments still overnight but spins the profit during the day. Of course, one has to possess a certain level of knowledge and preferably experience in addition, in order to be able to achieve sustainable profits on a daily basis.
  • You won’t get bored – although it may sound a bit unprofessional, boredom and lack of motivation can ruin all effort of creating a sustainable business that trading should represent. One of the pros of day trading is the fact that as a day trader you are less likely to get bored, as you will be measuring your experience, knowledge, and skills against the market currents every day.
  • Independence – in case you are into day trading as a business, you will most certainly enjoy the independence as you are your own boss and you can manage your trades under your own supervision. This is an especially benevolent factor in case you are a knowledgeable and experienced trader with a solid trading portfolio.

Cons

  • High Stress – high stress is, like it or not, a great part of day trading. This is the case because a trader involved in this strategy has to be able to observe multiple trading opportunities at the same time while making crucial decisions in a split of a second.
  • Ongoing costs – there are many costs to cover as a day trader in order to be able to compete with multi-million traders and hedge funds that are using massive funds to turn the market in their
  • High Risk – in case a trader is not capable of making prompt decisions on multiple trades in order to earn a profit while being immune to all the stress and high risk the day trading comes with, day trading will bring instant losses instead of daily profit.

Swing Trading Strategy Explained: Pros and Cons

Swing trading is less likely to turn into a career as it is impossible to make this strategy into a full-time profit maker. This is the case because swing trading requires trading and investing based on swings in the market and offered commodities over a course of several days or weeks.

Pros

  • Longer timeframe – since swing trading requires making decisions based on the analysis that takes place from several days to several weeks, a trader does not need to be at the computer observing charts all the time, making it a great profit on the side.
  • Minimized Stress – since a swing trader doesn’t need to make swift decisions, most of the stress is out of the frame with this strategy. However, in order to be able to profit from swing trading, you still need to be able to analyze the market and make your trades based on extensive research.
  • Profit in the Long Run – while day traders usually enter and exit one trade multiple times a day in order to turn some profit, swing traders can take days and even weeks in order to wait for the prices to jump before they make a trade.

Cons

  • High margins – unlike day trading, margin requirements for swing trading are significantly higher, allowing you to trade with a maximal leverage two times the capital. This is because swing trading involves holding stocks overnight.
  • Risk – this is a part of any trading session as usually there is a single decision between profiting and losing your investment. Since stocks with swing trading are held overnight, the risk of losing your investment during the time your stocks are unmonitored can carry a risk of losing on a larger scale.

Day Trading or Swing Trading?

There is not an actual way of telling that one of these strategies are better than the other as they all have their ups and downs. However, the best way to decide which strategy to use when trading is to focus on determining your qualities and requirements as a trader.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
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All the Reasons to Consider Investing in Dividend Stocks

As risk represents the ever-present factor in trading, investors and traders are always looking for new ways that would allow them to lower the percentage of the risk factors, that way preventing major losses taking place.

That is how dividend stocks make up for one of the most favorite class of stocks, especially among the new traders who are looking for low-risk investments.

Dividend stocks make up for one of the most desirable investments in a trader’s portfolio, especially among the beginners due to the fact that this class of stocks has shown to be one of the best ways of assuring a long-term profit.

Here are all the reasons to consider investing in dividend stocks.

Dividend Stocks Have Lower Accrual Rate

Accrual rate represents the combination of yet incurred expenses and earned profit of a company, that together make up for an income statement. That is how the companies with higher accrual rates usually turn out to be less desirable in a trader’s portfolio as the final return of the investment will be significantly lower for the high accrual rates.

The difference between the high and low accrual rates lies in the fact that those companies with lower rates always turn out to be a great deal for earning a massive profit in the long run, depending on the amount of the investment as well as the market.

As companies that pay their dividends tend to have lower accrual rate, the total return of your investment is more likely to pay off when compared to investing in non-dividend companies that carry greater risks when trading, especially as a beginner.

Companies Paying Dividends Choose Their Projects More Carefully

The projects of the company in which stocks you are investing in, whether we like it or not, have a massive impact on the profit you will come out with.

That is how the dividend paying companies always make up for a much safer investment when compared to the enterprises that have the money on their hands. That is how investing in dividend stocks can bring a long-term profit and help you grab a significant profit, while other companies would use that same money for starting acquisitions of new partnerships and projects.

All these factors are affecting your income as a trader, so in case you choose to invest in dividend stocks, you are somewhat signing up for investing in stocks of a company that is more likely to chose their projects and partners more carefully as the dividend-paying company always chooses the long-term gains over instant profit.

Near-Immunity to Market Crashes

No trader is immune to market crashes, which can also be applied to dividend stocks. Although representing a safer investment, dividend stocks can as well become the target of the market crash, casing he loss of profit.

However, with dividend stocks, the described risk is significantly lowered, which means that even though a sudden market crash can cause a stock to drop the dividend yield is most certainly going to attract more investors on the side, that way pulling out the reduction of the overall risk and losses as dividends are able to offer attractive yields on the dropping stocks.

Dividend Stocks Allow Reinvesting

Reinvesting in dividend stocks means that the traders who decided to reinvest their dividend stocks can take over more shares during the crisis in the market.

That way the traders who decide to reinvest are actually acquiring a higher level of equity, allowing dividends to return their loss through reinvesting. That is how bad volatility rates are actually being turned into profitable long-term investing, where even a minor increase of the stocks can make a difference between losing and acquiring a neat profit.

By combining business management, some basic mathematics and the knowledge about trading and the market, dividend stocks allows trading and investing under significantly lowered risks.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
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How to Start Trading Successfully with These Top 10 Rules

What most new traders fail to realize at the beginning is that trading is more than just setting up an account and rushing into a very first trading venture.

In order to be able to start off the right foot as you are only starting to learn what trading actually stand for, there are some basic rules that can be applied, like “buy when low and sell when high”.

However, a set of top rules combined and applied on real trading cases can surely help you sky-rocket your career as a trader, or at least introduce you to the right direction as you are starting off with your trading business.

In order to help out the traders that are only beginning and inspire more experienced traders looking to get back to basic, but golden rules, we are presenting the top ten rules that will help you start trading successfully.

Rule #1: Trading is Your Business

Many new traders are considering trading as a part-time job or a hobby in many cases, that way failing to give their maximum when trading while losing touch with commitment, while some traders consider trading to be their job, which is hardly manageable without a guaranteed monthly payment.

In order to be able to start off with trading in a proper manner, you need to consider yourself to be a business owner, of course starting out small at first.

Trading requires sacrifices and investments just like business, as well as posing the necessity of coming up with trading strategies and planning. Moreover, just like in business, at times you will be facing losses despite all calculations, just like with any business.

Rule #2: Create a Trading Plan. At all Times.

All proper traders who are actually earning money through their trades and investments usually have a trading plan developed before taking on the next step: actual trading.

A trading plan needs to be written under already determined guidelines that are being traditionally used, allowing traders to back-test their planned trades.

By testing the trades, a trader can determine whether the plan is set to become a successful trading venture or not, while it is required to strictly stick to the plan you have made prior to your trading move.

Rule #3: Monitor and Analyze the Market

Thanks to the modern technology traders are now able to follow with live trades on-the-fly, via their smartphones or computers, which allows you to follow up with the market currents.

Following up with the market means that you will be able to learn a lot about how trades as being made, as well as analyze drops and rises so you would be able to predict the next change in the market as accurately as possible.

Rule #4: Avoid Unnecessary Risks

Losing investments is a “healthy” part of trading, as there is not a single trader who didn’t lose some of the invested money at least several times during their trading career.

What is important when it comes to losing funds and trading risks is the fact that you must at all costs avoid unnecessary risks, that way protecting your trading funds.

Always carefully think over every investment even before you get to create a trading plan.

Rule #5: Learn More and Educate Yourself

It would be a lot easier to get a hold of the world of trading if you think about it as a way of learning more than you know, that way embracing more facts on how a successful trade is made.

Always try to keep up with the relevant and actual terms, while keeping up with economic reports.

Rule #6: Isolate Your Trading Funds

While one of the top 10 rules for successful trading advises not to take unnecessary risks, this rule suggests that you have your trading funds isolated from the funds you are using for different purposes like paying your rent, mortgage or bills.

That means that you need to be aware of the fact that by entering the market as a trader, you are at all times one bad decision away from losing your investment. Losing money is a risk that you should be aware of, so always keep your trading funds separately from other accounts you may have.

Rule #7: Create a Fact-Based Methodology

Your biggest allies are the facts. By learning the facts related to the market and not relying on your hunch or hoping to be lucky enough to earn some profit, you might already be on the right path towards starting out a successful trading venture.

Always choose facts and ratio over emotion and rumors.

Rule #8: Know Your Limits

Maybe one of the most important things in trading is to know when to stop. It is extremely important that as a trader you are able to determine when your trading plan or your strategy is not working.

In that case, you need to stop and come up with another plan before you lose more money and enter the higher risks.

Rule #9: Try Using Stop Loss

Stop loss is a neat technique often used by traders who want to minimize their loss and maximize their gains, which is after all the main objective of all traders.

Stop loss can be used for limiting the amount of your investment, in order for the trader to lessen the exposure to the risks in the market. Stop loss should be definitely practiced for minimizing the risk of trades you are making, while you can also use protective stop loss for more limited risk factors.

Rule #10: Stay Focused

First things first, you always need to be realistic when it comes to trading, which means that as a trader you must be aware of the fact that winning as well as losing money is just a part of trading.

What you need as a trader in order to keep in touch with realistic expectations regarding your investments, is to stay focused on your goal: minimize your loss and maximize your profit while keeping a close eye on your trades.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
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How a Trading Mentor Can Help You Earn

Trading definitely poses as quite a difficult task in the case of lacking experience, not having a technical background as a trader or even losing pace with the market flow. Not all professional traders work in busy environments where they can turn to a colleague or a superior for advice, either.

It is a common case that there is a growing number of traders who are working remotely, or in a personal office at home where finding a good trading, a mentor can be more than a necessary asset for successful trading.

That is how it is crucial to find a trading mentor who will easily help you follow up with any uncertainties you find along the way, either as an experienced trader or a newbie just getting started.

Here is how a successful and professional trading mentor can aid you in your trading ventures.

Trading Mentorship Comes with Credibility

Any trading mentor should be able to showcase their expertise by providing detailed records on their trading process and strategies, alongside with their portfolio where a perfect trading mentor would be able to provide additional training for other traders by showing some of his proven tactics.

Precisely that credibility can help you in clarifying any uncertainties that you might have regarding your personal trading projects.

Learn from those with Proven Strategies

Anyone can start a trading business, having an office downtown or just keeping a desk in a pear room at your home. But not anyone can find their way around the tough current Stock Market trading can represent.

That is where an experienced mentor comes into the big picture. Preferably you will seek for a trading mentor with proven strategies, as it is more or less a known fact that small traders will always follow the lead of more successful “big name” traders.

A “big name” in the world of trading would definitely do the trick, however, there is no need to look that far as finding a solid trading mentor with proven strategies that showcases at least a couple of years of successful trading and investing will most certainly be enough to get you started on the right foot.

Acquire the Right Mindset

A trading mentor could be quite a trait in case you need additional motivation and inspiration, as you need someone who will help you find opportunities even if it appears there aren’t any.

That means that the trading mentor isn’t just someone with a proven strategy or portfolio or someone who you admire professionally; a trading mentor could help you acquire the right mindset that would pose as a new way of trading, potentially bringing more successful trading in case you have chosen the right mentor.

Observation from Different Angles

Even if you are 100% confident that your trading strategy doesn’t lack expertise, it is always handy to be able to look at trading ventures from, not one, but more different angles.

That is how a solid trading mentor can come in as more than handy, providing you with specific insights that you might have missed during your professional analysis, guiding you towards more empowered trading.

Shared Experience

Following up with competition is one of the keys to success in any business venture. The art of trading doesn’t go far from there either, as knowing what other traders are up to, and more importantly why, may provide you with extraordinary market insights that you can take advantage of in the long run.

In this case, you don’t have to monitor your competition, as having a mentor may provide you with insights on your mentor’s previous experience in the stock market, which might as well reveal some trading mechanisms and strategies that you were missing the entire time.

Confidence in Trading

A perfect trading mentor should be able to remove any trace left by the lack of confidence in case this is one of the factors limiting your earning through trading.

Solid mentorship should equip you over the long haul with the confidence you need so that you would be able to trade on your own even when there is no one around to seek advice from. Confidence poses as one of the integral qualities found in successful traders, so this is an additional trait you should look for through your professional training.

Specifically, as a standalone trader, you might use additional guidance from a trading mentor who can offer sharing experience, trading tips, market insights and preferably proven strategies and a great track record of successful trading.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
Twitter: www.twitter.com/iStreetWire
Instagram: www.instagram.com/istreetwire

Trading 101: How to Start Swing Trading

Swing trading might be one of the most suitable trading techniques for beginners who are only starting to trade. What might be the most important thing about this technique is the fact that this skill doesn’t require a strong technical background while allowing traders to think through their moves.

The mechanism behind swing trading is a lot different than day trading as it doesn’t require traders to make prompt and immediate decisions, that way making up for a perfect trading strategy for beginners.

Here is how you can improve your trading stats by embracing the possibility of swing trading.

What is Swing Trading?

In order to be able to use swing trading technique as your trading strategy, you first need to learn what exactly it represents.

Unlike day trading techniques where traders are holding onto stocks for a brief period of time, commonly buying and selling different stocks during the same day in order to spin a profit on a daily basis, which defines this strategy, swing trading will require you to hold your stocks anywhere from several days to several weeks before letting them go.

The strategy works by having a trader buying whichever stocks when believed is the most profitable while holding onto the purchased stocks until the next price swing in the market.

The next price swing may occur anytime from several days to a course of a couple of weeks, when a trader finally makes another trade, defining the strategy of swing trading.

Why Go For Swing Trading?

While this strategy is suitable for more experienced traders as well, swing traders can truly come in as handy for the traders who are only starting with trading. By allowing a longer time frame for decision making, while using swing trading, the trader is allowed to have more time to reflect on the next move in order to gain profit.

That is how swing trading can allow all traders to extend the process of planning and making the next move supported by more valuable information regarding the trade with more time to reflect on the ways of scoring a profit from each trade.

Another factor that places this strategy as one of the most favorite trading techniques for new traders is removing the pressure. Fast decision making can pose a lot of pressure when live trading is in the process as your investment is at stake, so it can be of great help to have more time with all the pressure removed so that you can make more mature and educated decisions, that would, as a result, transform into a profit made by your trade.

Benefits of Swing Trading

With swing trading, a lot of pressure from making prompt decisions is removed, allowing you to extend the timeframe needed for you to decide what your next move would be.

However, unlike with long-term trading that takes months and years to pay off, you will be following the market currents, while hunting for benevolent factors that allow you to take a good use of volatility in the market, from week to week.

In a nutshell, swing trading represents ground zero between year-long trades and day trading, allowing you to earn fast as with day trading, while enabling you to keep up the record of your trades for a longer time in order to potentially score more profit without the possibility of losing track or getting lazy as it can often be the case with long-term investing and trading.

What is The Main Objective with Swing Trading?

As with any form of trading or trading strategies, the main objective is, naturally, to come out with as much profit as possible.

However, your ultimate goal in order to make a successful swing trading session is to choose stocks that match your needs and preferences, then trade while following up with trends and taking advantage of volatility in the course of several days or weeks, that way earning yourself a profit.

How to Earn with Swing Trading?

The oldest rule in the trader’s unwritten book of rules is to sell when high and buy when low, and although it seems a lot simpler than trading appears to be once you dive into the stock market, practically it all comes back to this basic rule.

In order to earn with swing trading, you first need to carefully choose in which stocks you want to invest in and then follow up with price swings and changes in the market in order to be able to turn a decent profit from your swing trading.

Want to learn more about the Stock Market & Trading Stocks or need a Mentor & Success Coach? Make sure to follow the iStreetWire / iStreetWirePRO Head Coach & Founder Chad Curtis, a 19+ Year Stock Market Veteran, Super Business & Success Coach, Entrepreneur & Investor Specializing in Day Trading, Swing Trading and Short-Term Investing in Stocks Under $20. He Coaches, Teaches and Mentors new and or experienced Traders, Investors, Individuals, Entrepreneurs & Business Owners.

Make sure to Join Chad Curtis now at this FREE Live Trading Chat room t.me/iStreetWire and make sure to sign up to  www.istreetwirepro.com.

You can also follow Chad Curtis on social media at:
Twitter: www.twitter.com/iStreetWire
Instagram: www.instagram.com/istreetwire