Being a good stock trader is less about being a hotshot like in a Hollywood movie and more about seeing a profit from your efforts. To that end, here are our tips for stock trading.
- Keep excellent records: This is for personal and tax reasons, especially if you are trading outside of a retirement account. You’ll have to report your profits to the IRS, and excellent records will make that easy and help you avoid an audit. Plus, keeping tight records will help you track your own progress and growth.
- Build over time: There is no need to jump in with everything you’ve got in your first trade. You can and should take things slowly at first. Control your exposure risk factor and make sure that you are building an overall portfolio that works for your long-term and short-term goals.
If this world excites you, get into it!
- Learn everything you can and practice on paper-trading apps.
- Read about the markets every day and soak in as much as you can about the investing world.
Knowledge is power in the world of stock trading, so keep learning, keep adjusting your strategy as needed, and keep track of your results.