How to Buy, Sell and Day Trade Stock
Professional investors make a living out of buying, selling and day trading stock. While you may never earn a full-time income out of it, it's not impossible to do it for yourself. Individuals can earn extra income from trading or simply manage their retirement portfolio with just a few hours of work per week. The tools needed to buy, sell and trade stock are widely available and generally free or very inexpensive. Doing your own trading and investing does take a considerable amount of time, effort and training, but the results can be well worth the effort.
- Difficulty:
- Challenging
Instructions
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1
Do your research. Online and print investment research sources such as Morningstar and Investor's Business Daily can provide valuable stock picks and trading strategies. Both publications list investment ideas and prices at which to buy and sell your stocks.
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Use an online stock simulator to practice stock trading before committing your own capital. Marketocracy.com is a popular and free stock market simulation tool.
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Sign up for an online brokerage account. Popular online brokers include Trade King, E*Trade, and TD Ameritrade. When considering an online broker, be sure to compare the transaction costs.
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Fund your trading account. You can mail a check to the brokerage or set up direct withdrawal when you open the account and complete the paperwork.
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Stick to your strategy. Your investment resource (Investor's Business Daily or Morningstar) will give you specific prices at which to buy and sell. Be sure not to get emotionally involved in your trades and follow the rules you set for yourself.
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Tips & Warnings
Consider some advanced trading education. Online resources such as tradingsolutions.com provide advanced trading techniques to investors.
