Things needed to start trading stocks
In this article I want to share with you few things which you need to do before you start trading stocks for a living.
When I start trading stocks, I was in the finance industry for 6 years. Before I switched to stocks trading, I have been trading FOREX. I can tell you it is a big difference between trading forex and stocks. First off all, forex is dynamic and is trading 24/5. Stocks are much less dynamic (except these days, when we see really crazy moves per trading day but this is temporary due to the debt crisis right now).
Stock trading is suitable for people who are looking for less dynamic type of trading, which takes only 6 hours a day. You don't need to watch the charts 24 hours because markets are closed after 6.5 hours.
I started trading stocks with capital little over $13,000. Right now I am up almost 100% after 3 years of trading. This performance may be not enough for someone, but 30% per year is very good result for me.
Now I am getting to the point of this post. What you need to do before you start trading stocks?
First of all, you need a decent starting capital. If we compare this type of trading with forex trading, you need much more money to trade stocks than trade foreign currencies. This fact is because in stock market there is no such thing like leverage 100:1 ( I know some forex brokers who actually offers you even 500:1 leverage). My stock broker offers leverage 30:1 for trading stocks. So remember, if you are migrate from forex to stocks, be aware of lower leverage 30:1.
When you have enough capital, the second important thing you need to do is choose the correct brokerage firm. There are few really good brokers, but I can recommend you only one: Interactive Brokers. I don't have any commisions from them and I am not trying to advertise this company, but I have a very good experience with them and can only recommend them. Why? First of all, because they are fair, second of all, their commissions are the lowest in the industry because of the volume. And third, they offer almost every type of trading instrument out there. You can trade forex, stocks, options, futures, even commodities. And not only on US market, but almost all markets over the globe.
When you have already chosen broker and your capital is at least $10,000 you are ready to start trading stocks. What stocks to trade and how to trade the stocks safely also in this debt crisis, this is theme for next post.
For more info, please visit my stock trading blog High dividend paying stocks where you can find more details about trading dividend aristocrats with high dividend yields.
When I start trading stocks, I was in the finance industry for 6 years. Before I switched to stocks trading, I have been trading FOREX. I can tell you it is a big difference between trading forex and stocks. First off all, forex is dynamic and is trading 24/5. Stocks are much less dynamic (except these days, when we see really crazy moves per trading day but this is temporary due to the debt crisis right now).
Stock trading is suitable for people who are looking for less dynamic type of trading, which takes only 6 hours a day. You don't need to watch the charts 24 hours because markets are closed after 6.5 hours.
I started trading stocks with capital little over $13,000. Right now I am up almost 100% after 3 years of trading. This performance may be not enough for someone, but 30% per year is very good result for me.
Now I am getting to the point of this post. What you need to do before you start trading stocks?
First of all, you need a decent starting capital. If we compare this type of trading with forex trading, you need much more money to trade stocks than trade foreign currencies. This fact is because in stock market there is no such thing like leverage 100:1 ( I know some forex brokers who actually offers you even 500:1 leverage). My stock broker offers leverage 30:1 for trading stocks. So remember, if you are migrate from forex to stocks, be aware of lower leverage 30:1.
When you have enough capital, the second important thing you need to do is choose the correct brokerage firm. There are few really good brokers, but I can recommend you only one: Interactive Brokers. I don't have any commisions from them and I am not trying to advertise this company, but I have a very good experience with them and can only recommend them. Why? First of all, because they are fair, second of all, their commissions are the lowest in the industry because of the volume. And third, they offer almost every type of trading instrument out there. You can trade forex, stocks, options, futures, even commodities. And not only on US market, but almost all markets over the globe.
When you have already chosen broker and your capital is at least $10,000 you are ready to start trading stocks. What stocks to trade and how to trade the stocks safely also in this debt crisis, this is theme for next post.
For more info, please visit my stock trading blog High dividend paying stocks where you can find more details about trading dividend aristocrats with high dividend yields.
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