Penny Stock Trading…
These three words used to give me a huge headache. There are so many success stories about people becoming millionaires in this particular field that I’ve always felt drawn to it. At the same time, I could never fully wrap my head around the concept – it seemed too risky – so I kept resisting the urge to dabble in it.
Until I read a story about Tim Grittani. Tim was bitten by a stock market bug early on. Suffice it to say that he loved (and still loves) money – a love that has gotten him into gambling troubles at an age of 20. He decided he had to find a different way to pursue his passion for cash.
He started learning all he could about stock trading. One of the programs he stumbled on to was Timothy Sykes’ Millionaire Challenge where Sykes taught how to grow investments by trading in penny stocks – stocks worth less than $1!
After a few months, Tim felt he was ready. The only problem was that he had $1,500 to invest – this meant that he couldn’t go after great stocks; he would have to make do with cheap stocks and work his way up.
Care to guess how much Tim made in his first year?
That’s right! A 22-year old guy with no previous stock training made just under double of US average yearly salary by trading penny stocks!
I’m officially out of excuses – how about you?!
Why Should You Consider Trading Stocks?
I won’t lie and say it’s easy. It isn’t – most home-based traders blow their investment money fast because they think this line of work is easy pickings. If that were the case, everyone would be doing it.
However, if you’re serious about it I can’t think of an online way to make money that has a bigger potential. There are people in this industry that became millionaires in just a few months. Was it sheer luck? For some, sure. For others, hard work and a very analytical mind were a winning combination. Whatever the case, there is no denying that there is real money to be made here.
Who Can Make Money by Trading Stocks?
As evidence seems to suggest, anyone can try their hand in a bit of stock trading. There are virtually no barriers here. The only thing that you need is startup capital. Keep in mind that quality online websites might have a minimum amount you have to deposit to open your account. It’s always a good idea to pay a bit more in the beginning and choose a good service than go for the cheap end and get screwed when it comes to customer support, tools, or training.
Also, if you want to be good at stock trading, it pays to have an analytical mind and to be a hard and fast learner. The fact that you don’t know anything about it yet doesn’t really matter. What matters is how fast you can pick up and apply new skills.
Ways to Make Money Trading Stock Online
There are tons of ways for you to make money trading stock. We will focus on the three main ones:
- Day Trading – buying and selling in the same day. This type of trading is not recommended for beginners. To learn more about different sub-types of day trading, visit this page.
- Short Term to Medium Term Trading – most common type of trading. Most traders try to buy low, hold on to stocks for a short period of time, and then sell high.
- Long Term Trading – holding stocks for years, while earning profit from growth and dividends and possibly selling for profit (or a loss) somewhere down the line.
Core Principles of Stock Trading
Going into the steps of how to actually buy and sell stock would require a book – that’s why I’ve added resources below and there you can get most of the information. It’s difficult to pick up stock trading by reading stuff. You’re going to have to be doing as well and some of the courses listed in the resource list are great value for money.
Here I’ll just touch on a few key principles of stock trading:
- PRINCIPLE 1 – Buy low – whenever possible
- PRINCIPLE 2 – Sell high – preferably always
- PRINCIPLE 3 – Do your research or don’t trade at all
- PRINCIPLE 4 – Know thy statistics and analysis
- PRINCIPLE 5 – Invest money you can afford to lose
- PRINCIPLE 6 – Dividends can earn you some real money
- PRINCIPLE 7 – Diversify your portfolio
- PRINCIPLE 8 – Avoid liquid stocks
- PRINCIPLE 9 – Don’t sell in a panic
- PRINCIPLE 10 – Buy technology stock
1. Online Education
2. Online Trading Platforms
If you’re tired of low-risk low-gain online schemes and you’re willing to put your money where your mouth is, stock trading is what you’ve been looking for. There’s potential for huge, even overnight profits in this line of work, especially if you’re good and willing to constantly work on improving your skills.
Penny Stock Trading