How easy can it be to identify new trading ideas and apply them in the stock market? The answer varies. Wealthier and more experienced investors can become accredited investors. This opens more investing doors. More on that later. Everyday investors are more limited with their actions, but they can still take advantage thanks to a multitude of online investing communities. Below, we’ll learn how not to run out of trading ideas.
Table of Contents
- How Not to Run Out of Trading Ideas
- Becoming an Accredited Investor
How Not to Run Out of Trading Ideas
To begin learning how not to run out of trading ideas, let’s take a look at a variety of strategies investors can teach themselves.
Many new investors often find themselves short on time and opt for a financial advisor or regular market orders of popular stocks.
However, the stock market offers a variety of instruments investors can use. All they need is a bit of time and practice. We will take a look at a few strategies below.
Options trading is available for the majority of investors without any constraints. It’s safe to say that every broker offers this option, but fees per transaction vary across platforms.
However, it is not available for every stock. Options allow investors to speculate on the price of a security.
It can be future upward or downward movement. Some securities offer options trading from 1 week to a few years ahead of time.
Trading options can be risky. There is a possibility of losing the entirety of the investment. However, the upside is also huge. The contract gives the buyer the option to buy (calls) or sell (puts) the underlying asset for a specific price during a certain time period.
Options can also be used to hedge risk. For more information on options trading, we offer a course about it. With so many options strategies, you’ll learn how not to run out of trading ideas.
Get Out of Your Comfort Zone
Yes, it may be easy to stick to stocks everyone knows or to simply visit your local financial institution for advice. But if you’re learning how not to run out of trading ideas then get out of your comfort zone.
However, there exist a variety of stocks and other securities available to all.
Many investors became successful simply by reading various newsletters and following the recommendations of online websites. Many will speak about little-known markets.
Investors can learn about small-cap stocks, new industries, and commodities simply by reading about them. Some articles will even speak about new industries developing around the world. It can be risky to invest, but returns and losses can be greater.
There is no better place than social media for investors to find brand-many trading ideas. Nowadays, everyone has an opinion and they are more than willing to share it online. That’s why you’ll learn how not to run out of trading ideas with social media.
However, there isn’t much substance behind some. It is up to you to conduct the appropriate due diligence before making any decisions. Let’s take a look at a few platforms that can offer new trading ideas.
Reddit is the home of eclectic trading ideas. Different Reddit communities are called subreddits.
Many public companies even have their own subreddits. Apple, Tesla, Google, and many more have a home on this platform.
Moderators make sure certain guidelines are respected. Users post company-related content. Below are a few investment-oriented subreddits.
r/WallStreetBets is the largest investment community on Reddit with over 11M users. They like calling themselves apes or degenerates. They are home to the meme stock community.
Their love for GameStop and similar types of stocks is unlimited. The community loves to post about YOLO purchases. From time to time, a lost soul will post something with substantial due diligence performed.
Quality posts exist, but they get lost among memes and random nonsense. WSB can be a fun informational read as well as a headache. Be careful when learning how not to run out of trading ideas that you don’t trade just any idea.
The Stocks subreddit has one-fifth of WSB’s following. However, the percentage of informational posts is far superior. Many users post quality questions, due diligence, and analysis about stocks, markets, and news releases. Memes are nowhere to be found. Serious investors should consider beginning their ‘’new trading ideas” research here.
The Investing subreddit is very similar to r/Stocks. One major difference can be the discussion of topics that affect the economy as a whole instead of individual stocks. Investors who are seeking out industries that are in the early stages of their growth can find a home here. Once again, it is much more serious than WSB.
Next on the list is a penny stocks subreddit. This is for investors seeking outside-the-box investments. Many virtually unknown companies find a home and followers here. Penny stocks are much more volatile than large-cap stocks, but they can offer exponential returns.
Diving into this community can lead to a rabbit hole and headaches. It can also provide new information and successful trades. Make sure to always do your own due diligence before pressing that ‘’Buy” button.
On top of individual stocks, many sectors also have a home on Reddit. Notable examples are WeedStocks, ShroomStocks, MemeEconomy, etc.
Facebook groups, discord, and TikTok also found a home for new investment ideas. Going through them all would take a lot of time. They are available to almost everyone online.
Podcasts can be an interesting source for new trading ideas. Many financial experts have a stage to share their thoughts and knowledge with the rest of the population. Which ones are worth a listen?
Mad Money with Jim Cramer
Jim Cramer is a well-known money manager and anchor on CNBC. He hosts a daily podcast where he gives his opinion on various US stocks. He helps new and existing investors with the Wall Street jungle and how to navigate it.
Stacking Benjamins is hosted by Joe Saul-Sehy and financial advisor Josh Bannerman. They answer basic stock market and economic questions as well as more complicated questions about emerging stocks and industries 3 times per week.
Money for the Rest of Us
Financial expert David Stein is on a mission to help everyday investors make money from the stock market. All the themes covered in this show help investors understand and adapt to the market. Stocks and tips are common themes.
In the next section, we will take investments to a completely different level. This will be for wealthier and more experienced investors. Even if you are there yet, it is definitely an achievable goal
Becoming an Accredited Investor
Accredited investors are allowed to make investments in securities that aren’t registered with the Securities and Exchange Commission (SEC). Exciting! How does one become an accredited investor?
Yearly personal income over the last 2 years must be at least $200,000, or spousal of $300,000. Furthermore, individual or joint net worth must exceed $1M. The primary residence is excluded from this number. The list also expands to individuals well-versed in the art of investments.
Once an individual meets the above criteria, they are set to purchase investments outside the SEC scope. It is up to the company selling the financial instrument to perform the necessary due diligence before selling the security. There is no membership card, governing body to report to or online application to become an accredited investor. What investments are available to accredited investors?
Investments Available to Accredited Investors
Venture Capital: Private equity investments to startups, early-stage, and emerging companies. This can also be called angel investing. Investors get the opportunity to fund companies before they become public.
Real Estate Investment Trusts (REITs): Companies that pool their money together to invest in various real estate (condos, buildings, warehouses, hospitals, retail locations, etc.).
This avoids the tedious management of the properties. When there is a profit, it is distributed.
Hedge Funds: Portfolios with more complex and sophisticated forms of investing. This is the home of derivatives and financial instruments unknown to everyday investors.
The investments above offer higher risk-reward options to accredited investors. And also another way to learn how not to run out of trading ideas.
To conclude on how not to run out of trading ideas, we spoke about various ways for investors to come up with new trading ideas. To recapitulate, it can be self-taught, from social media, or by reaching another level and becoming an accredited investor. New investment strategies come with new risks. It’s essential to be well-versed before investing.
If you want to learn more about how you can profit from the stock market, head on over to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.