Last Updated on Mar 31, 2020 by James W
We all want to make a little bit of extra money from time to time. For some people, this means taking on extra work. For others, it means having a look at some investment options.
Arguably the most popular investment option in the modern world is found in stock trading. This can not only be fun, but very lucrative! But don’t expect to go in blind and start making millions of bucks. You need to ease yourself into it if you want to give yourself the best chance at success.
Take the following advice!
Get some practice in first
Even if you’re not thinking about investing in stock seriously, this is useful. Virtual stock trading can help you understand how the whole thing works on a theoretical and practical level. You shouldn’t underestimate the effects that the stock market has on your everyday life, after all. The financial well-being of everyone hinges, to some extent, on the stock market. (Because it’s a good indicator of economic health!)
But, of course, we’re going to assume that you really want to start making money from stocks. Don’t jump straight into the deep end! Software like SynVero has trading simulators you can cut your teeth on. (They can also work as stock screeners going forward!)
Research the company
So you’ve got a little practice in. You feel ready now. You’ve found a company with stocks available for purchase. Maybe you recognize the name, maybe you don’t. Whatever the case, you’re seeing a lot of big numbers, plus signs, and green hues. But don’t fall into the trap of thinking that that’s all you need to know to make a profit!
You must find out as much about the company as you can. There are a lot of people out there who will invest in a company without knowing what that company actually does. Crazy, but true. You should have at least this basic information. But you should also take a look at their value history. See if you can find projections of their financial future. What kind of products do they on sale? How well do they sell? Do they have something new coming to the market? You should know all of this.
Start with just one stock
Okay, here we are! You’re ready to buy a stock! And yes, I did just use the singular form, there. You should consider only buying a single stock. Your first investment is going to be more of a learning experience than any of the previous steps. So start small. This lets you follow the financial health of a single stock. Remember that “stocks??? are a collection of these single stocks!
Clue yourself in on stock trading theories
Many people will try to tell you that that’s a single theory that will help you make the best decisions. And yes, in theory, some of them do sound pretty foolproof. But in practice, you’ll often find yourself picking and choosing elements from a number of theories when you make your decisions. You may not even find much use of the more hardcore ones, though some may swear by them. But you should research them nonetheless. It’s one of the best ways to get into the minds of fellow traders!