Thursday, June 14, 2012

For Beginners


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.

No comments:

Post a Comment