If you don’t have a lot of money to trade (which is most of
us) start out small and learn how things work.
You can start with as little as $100 but I suggest going with $500 to
$1,000. Now before you trade a dime you
should spend at least 2 weeks to a month trading paper money on Think or Swim
from TD Ameritrade. It gives you a
handle on how to place a trade, what things mean, and how not to make major
mistakes. I suggest doing your actual
trading on Trade King or any other low commission site because TD Ameritrade’s
commissions make it pointless for small investors. Its nigh impossible to make a profit when
your commission price is $10 a trade which means it will cost $20 to get in and
out of a trade. That’s my profit horizon
on some stocks.
The goal is to keep it simple. I start out with saying I’ll make $20 a day
on one trade and even if my profit is $8 I still made money.
Disclaimer: I am not an endorser of any trading platform I just found out which platform worked best for me and was a good value for the money.
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