In the digital age of stock trading, it is easier than ever to dive right into the market. You can be set up on a mobile platform or web-based broker in minutes, and be buying your first stock soon after. Unfortunately, without the proper education and mentality, you can also find yourself losing money quickly. So how do beginners learn to trade stocks as a business profitably, then?
The answer is by approaching the market with the proper mindset day-in and day-out, taking the time to learn before investing, and aiming to use the market as a tool to provide income, build wealth, and empower themselves. If you think you have what it takes to develop solid fundamentals and start your trading career, read ahead to learn how to start the right way.
Can You Teach Yourself to Trade?
No. May people do try to do this, but the chances of success are highly unlikely. The cost of trying to teach yourself through free resources is typically time, money, and frustration. If you could save yourself all three by approaching trading stocks as a business plan aided by mentors, why wouldn’t you? After all, how good is your teacher when you are self-taught? How good are the people you listen to in trading communities when they have the same experience as you?
The great thing about trading stocks as a means of financial independence is that there are dozens of ways to do it. You can trade whatever securities, indices, and amounts of money you want and still potentially make a good amount of money. Similarly, you can design your lifestyle and hours around the trading that makes you feel best. However, if you dive right in without a plan, you will most likely be forced to adapt to whatever the market throws at you, and may find yourself cornered into a certain type of trading or heavy loss, before you know it.
Ultimately, the early stages of planning and education before you trade can build a foundation for concurrent growth in skill and profitability. For something that is as powerful as leveraging your net worth, wouldn’t it make sense to approach it systematically?
How Long Does it Take to Learn to Trade Stocks as a Business?
Nobody is ever truly done learning how to trade; the markets and world evolve around you constantly and keeping up is imperative. However, there are some expectations that you can set for yourself to learn the foundations of technical analysis, trading fundamentals, and building your own trading plan with a proper mental approach.
How quickly you start trading with real money depends on many factors. Education is key but so is how much time you put in, as well as having a solid mindset. Everyone learns at a different pace and has different goals.
This is why many of our students start with paper trading, then trading for small sums, and gradually increasing their risks as they get comfortable. Though we teach our students to always keep their risk low.
In terms of developing your own style and business plan for trading, this will be a function of how aggressively you want to pursue a trading lifestyle. If the answer is that you want trading to be a full-time gig that affords you financial freedom (which we believe strongly in), then taking the proper educational steps as quickly as possible will be your most valuable move early on.
What Are the First Steps to Trading the Markets?
Given the wide range of time over a proposed learning curve, we can help narrow it down by establishing some finite first steps to take for any qualified trader. In order to get yourself adequately set up, we recommend:
Research and set up a trading account
For early day trading, we typically recommend a traditional brokerage, but it is possible to trade out of any account that holds securities (such as an IRA). You’re going to need to fund the account via a separate bank account and provide your brokerage with proper financial information regardless of what type of account you set up.
What we believe is most important is seeing what features a trading platform has. You should be looking into their fees, trade types allowed, customer support features, and making sure you can familiarize yourself with the user interface. While you can begin trading on almost any platform effectively, you can also develop significant edges by finding one that suits your style.
Paper trade or trade small while learning
Undoubtedly, learning the emotions of what trading for real money causes you to do will be a significant step towards real profit. However, learning the literal mechanics of trading such as how to place buy and sell orders, how to read price action, and what real-time charts look can help slow your thought process down.
Ultimately, you want to make the most objective and well-thought-out decisions, then they should be based on understanding the true fundamentals of trading consistently. If you are working to learn these on the fly while simultaneously risking money that means something to you, it’s unlikely that you’ll stick to any sort of plan.
Analyze your trades with mentors
One of the most valuable things you can do in trades is identifying whether your execution was good regardless of the outcome. While the hope is that good trades yield good results, the market is unpredictable. You could make a poorly timed trade and get lucky for a huge gain, while sometimes the best trades don’t pan out. This is why our students post their trades in our Live Coaching Community and ask our coaches to give their feedback.
Knowing which setups were good and bad will give you a chance to create consistent positive results.
Once you have established a means to trade stocks as a business, along with a comfortable environment to start out in and developed a game plan for growth, you should be well on your way to financial freedom.
Take Control of your Financial Destiny With StockAbility™
At StockAbility™, we believe in empowering our clients through trading education for long-term success. We understand that the quicker you learn how to trade comprehensively, the more you can gain.
If you’re looking to take the next step in your financial future, reach out today; we’d love to show you the path.