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Stock Trading

One trade a week, One $ 1 Million? Find out how. How do you start stock trading? Learn the best way to start making money and trading at home for a living. Folks, I wish I had a lesson like this back when I started trading in the 1990s.


Question: Hi i want to start trading stock online i wanted to know if any one has a recommend site? Ohh and where can i learn how to use?
how much money do i need to start?
how much money do i need to start?

Answer: Stock trading is a great way to make money, BUT, “Dont forget the risks involved”, you can and will make losses. if you cannot cope with some losses on a regular basis, then go ELSEWHERE.

Obviously the Wins have to outweigh the losses to make a profit. (Rocket Science, Yea).

The first thing you need to do, is go out and learn. LEARN a lot. For the basics of stocks, your local exchange sites will give you data. (For me its the ASX). Now time to go and get some books too, I recommend things like “The New Market Wizards”, “Trading for a living”, “The Way of the Turtle”, and many many more.

Websites will help also. Search for stock trading and you will have heaps of sites offering their “Holy grail of Trading and this is how we make millions in just a year”, take all that with a grain of salt. Find sites with free data, Scrounge some free “ebooks” and read as much as possible. Dont get hooked by sales documents and “Our historical data”, they likely aren’t as good as they make out.

Now find a broker that offer a “Demo” account. this is an account that offers data with a fake money balance, that way you can see how it feels to be in the market with no money at risk. You have to make a “system” of rules to trade and eventually you can move onto real money.

Now to start out in stocks you would want to have a minimum of 10-20k (Yes i mean $10,000). this is due to Several things.

1. Risk, you dont want to put much money on the line each time you enter. FACT : you will have losses on any good system. You will have Multiple losses in a row. When you open a trade you are risking money, a system works by tipping probability in your favor.

2. Commission, Broker are paid a commission for entering and exiting. If you have to enter the Minimum amount of money on a trade (There is a legal Minimum). you will find that you have to make a high profit EVERYTIME, just to break even. For instance, In Aus. The Minimum is $500. The Commission is $60, now that means that to make up for commission i need to make 12% everytime before i make any profit. Now say i enter a $5000 trade, the $60 is now about 1.2%. See the difference.

3. Life (Longevity), You will have losses and you will have strings of losses, if you are undercapitalised you will see your money fall to a point where you will be desperate and then start doing silly things like betting twice as much as normal. (And at this point it is Gambling). so you will probably bust your Whole bank account and wish you had never started. (Dont do that).

Hope this helps, Seeya