ONLINE STOCK TRADING FOR BEGINNERS

  • September 27, 2019

Watch our video on online stock trading for beginners.

You probably landed on this page thanks to your google search for online stock trading for beginners. And for that, be thankful.

Be thankful because there are lots of companies promising you huge returns with minimal upfront investment. In other words, scams. So before you consider trading, you must educate yourself, so you know what you’re getting into.

Will it be easy? No. Will it be worth it? Yes. Today I am going to give you a few tips I wish I had when I started.

ONLINE STOCK TRADING FOR BEGINNERS

Trading nowadays is much different than it was in the past. Before computers and the internet, we had to trade using newspapers and phones. 

There weren't many trading services that were teaching people how to trade. We had brokers to do it for us. Now we have stock market courses were we can learn on our own.

Trading isn't easy. In fact, 90% of traders fail. Don't let that scare you, however. If you're willing to put in the time it takes to study and practice, you won't be a statistic.

Check out our live trading rooms to see us trading and talking stocks in real time. We also have real time stock alerts with entries and exits you can use.  

Online Stock Trading for Beginners

TRADING STYLES EVERY TRADER NEEDS TO KNOW

Did you know that’s there more than one type of trading? Did you also know that scalping is considered day trading but not all day trading is scalping? For this reason, when searching for beginner strategies it is essential to know how long you will be holding your position. Come and check out our day trading room.

Here’s a breakdown of the different types of trading to help you decide what works best for you:

  • Scalping - Holding positions for several minutes
  • Day Trading - Holding positions for a day or less
  • Swing Trading - Holding positions for several days
  • Position Trading - Holding positions for several weeks
  • Investing - Holding positions for several months or years

Your trading style is a personal decision, based on your personal circumstances. If you’re stuck in a Monday to Friday, 9-5 position with no access to the market, scalping or day trading obviously won’t be an option for you. A better choice may be swing trading as you don’t need to be glued to your computer. 

THE MOST IMPORTANT THING NEW TRADERS NEED TO FOCUS ON

As a new trader looking for online stock trading for beginners, education is the most important aspect to focus on. It makes no difference if you have $10,000 or $1,000 to start trading with; if you can’t read a chart, you won’t make profits. 

Put another way, if you don’t understand why you shouldn’t buy if the candlestick is under the 9 EMA, 20 SMA or VWAP, and stock volume is waning, you have no place in the trading world.  

Any education provider worth their weight in gold, will show you how, not tell you why you should enter a trade. Do they provide you with entry and exit criteria? Does their training provide you answers to questions like:

  • Why does this strategy work?
  • How do I trade this strategy?
  • What are the best stocks to trade this strategy?
  • How do I be safe when using this strategy?
  • How do I find this set up to trade?

Armed with this information, go ahead and pick your education provider; your next step is to pick a trading strategy. Watch us do trading live each day in our trade rooms.

ONLINE STOCK TRADING FOR BEGINNERS WITH TRADING STRATEGIES

322,000,000 million; that’s the number of results I get when I type trading strategies into Google. As you can see from the list below, it’s extensive:   

  • Trading zones
  • Trading on volume
  • Arbitrage trading
  • Utilizing news
  • Trend following strategy
  • RSI, stochastic trading strategy
  • MACD
  • Parabolic SAR moving average

I could have easily highlighted another dozen or so, but that would only expose one of the main problems confronting active traders. There are just too many opportunities present in the market on any given day.

As you study each trading setup, it's important to remember that you must find the one that matches your trading style the most, to have success.

Your job is not to trade everything but only to trade a limited few. 

Remember, it only takes mastery of one trading setup to make consistent profits in the market. With your education provider secured, trading style and strategy defined, your next step is to find a broker that meets your needs. Make sure to bookmark our watch lists pages that we update nightly.

WHAT TO LOOK FOR WHEN CHOOSING A BROKER

Online stock trading for beginners means you need to use a broker who will execute your trades on the market. The broker you choose is an important trading decision. Below are some points to look at when picking one:

  • Execution Speed – If you’re entering the Indy 500 race with a 120 horsepower engine, you might as well go home now. Considering the typical NASCAR race cars have upwards of 750 horsepower, you don’t stand a chance. In other words, execution speed matters. A broker who can’t execute your trades in a timely fashion will have you sitting in the sidelines wondering why your orders can’t get filled. Not to mention the feeling in your gut as your account balance. Check out our blog post, which covers brokers with direct market access. 
  • Costs – Fees and commission rates are particularly important to scalpers and day traders. Due to the frequency of trades you make in a day, you need to have low commissions. Otherwise, your profits will be eaten up by pesky fees.
  • Spreads, Leverage & Margin – As a day trader, you want competitive spreads, certain leverage levels and low margins. Now, as a beginner looking to trade stocks online, stay away from margin until you’re seasoned and practice solid risk management strategies. Otherwise, you’ll be gambling (check out a list of the best brokerage firms)
Online Stock Trading for Beginners

Online stock trading for beginners can use ThinkorSwim by TD Ameritrade as a great asset to get started. In fact, they're one of our favorite brokers.

BROKER COMPLIANCE 

  • Regulatory compliance – Make sure your broker company is regulated, ideally in the country you are trading. This way, they are legally obliged to protect your financial interests. Nothing screams shady like a fly by night brokerage registered in a country you never heard of. Do your research before you sign on the dotted line.
  • Support – Whatever your trading strategy, you’ll probably need assistance at some point, trust me when I say this. For this reason, I suggest you look for online brokers with quick response times and strong customer support. A human on the other end of the phone is always nice. 

Do your research and read some of our online broker reviews before you choose one. They should help you determine whether your potential broker suits your trading style (read about the different types of stocks).

ONLINE STOCK TRADING FOR BEGINNERS BOTTOM LINE

Yes, you can make money online trading stocks. Trading for a living is not easy, but it can be an excellent additional source of income.

The most important thing to remember is that you need to have the right education before you put money on the line. Strategies that use specific trade entries and use a reliable risk management methods will help you on your way to making profits. 

Luckily, Bullish Bears is here to help you navigate the process. We have a number of free online courses for beginners, to intermediate to advanced traders.

We recommend taking our courses in conjunction with watching us teach live in our trade rooms each day if you're looking for the best way to learn stock trading.

Our trade rooms are a great place to practice what you learn from our courses in a real-time trading environment.

Free Trading Courses
Please follow and like us:
Follow Me
Tweet
Reddit
Tumblr
close

Enjoy this blog?
Please spread the word! It helps us grow :)

>