How to Be a Stock Trader
Trading stocks is an effective way to save for retirement, fund your children's college, or make extra money. Because stock trading requires in-depth knowledge of stock market trends, trading strategies and access to specialized and often technical information, longer term investing may prove more profitable for the part-time investor.
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Instructions
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Open a brokerage account. Research the many stockbrokers available and open an account with a broker. Make sure to read the terms and conditions associated with each broker.
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Fund your account. The new investor should start with no less than $5,000. SEC rules require that any investor wishing to become a day trader must start with at least $25,000 and have a margin account with their broker.
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Make contacts. Successful stock-market traders must be an integral part of the investing community to learn from others and pool their market research.
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Start trading. Sometimes you just have to get started. Make your first trade and learn from your success or failure. All of your research will not make you any money unless you take the chance.
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Tips & Warnings
Set aside only a small part of your investing funds for short-term trading. Use the majority of your money to invest in longer term financial instruments that will mature over time.
Stock-market trading is often not regarded as a profitable strategy for the part-time time investor.
