Top 8 tips on becoming rich with stock trading

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Stock traders are under a lot of pressure a lot of times. And it goes without saying that the less stress you have, the more productive and successful you are going to be in the long run as you are not going to be constantly tired and irritated. Also, I would say that the more money you have, the less stress you have. And let me tell you, stock trading is just the thing for you if you want to become filthy rich.

So, what do we do in order to become rich from stock trading?

 

1. Do not hesitate to trade penny stocks.

2. Go for small gains.

3. Take your rewards.

4. Look at each trade as if it were a business.

5. Do not try and catch exact tops and bottoms.

6. Do not try and always go bullish.

7. Buy breakouts and short breakdowns

8. Look at the biggest percentage earners.

 

1. Do not hesitate to trade penny stocks.

Penny stocks are perfect for average-Joe traders. In case you are not a pro these are going to have you covered in volatility. The thing is that big-company stocks are just going to keep you not so far away from your initial deposit. As weird as it sounds, penny stocks, or stocks of the small companies have all the possibilities to make you rich in a matter of a year.

Try them out, you’ll see what I am talking about.

 

2. Go for small gains.

You know what they say – the smaller is the gain, the lesser is the risk that you have taken. And in case with stock trading small gains are going to add up over time. Sure, if you are going to be waiting for accumulation you are going to have to be more patient, but that also means that you are not going to have to take that big of a risk.

In case you have taken a small gain for several times in a row and they delivered, please, look into the options of making it your permanent trading strategy.

 

3. Take your rewards.

Of course, under ‘take’ I mean never stop doing whatever the market favors. And, if I know the market I know that it favors knowledge and information. Note, not time, but knowledge. Those, relying on a steady paycheck are never going to understand this – but you are going to t have to dig into a lot of books and a lot of sources in order to show the stock market – you are ready to commit.

And even if you feel you’ve had enough, watch out for that slap that can come across your face sooner or later – the market is not going to let it slide.

 

4. Look at each trade as if it were a business.

Trading as a whole needs to be treated like a business endeavor. But in stock market, where actual businesses are present you need to look like that at every trade. You out your money on the line and technically your earning is dependent on a bunch of other people. Sounds like a business to you?

Plus, looking at every trade like at a business makes your head clearer and gives you more perspective and understanding.

 

5. Do not try and catch exact tops and bottoms.

Prices changes in stock markets are unpredictable, especially if we are taking about penny stocks. A lot of traders actually prefer to make their money off about the third of a move, nit the whole climb. And yes, I agree that the whole climb would bring you more earnings, but not catching them would certainly bring you more stability.

Remember – catching perfect top is nearly impossible.

 

6. Do not try and always go bullish.

Bull market is not the only market conditions where you can catch some gains. A lot of traders find a way to profit in any conditions. That is why you need to try that too. It is as simple as that.

 

7. Buy breakouts and short breakdowns

When a stock shoots above resistance level that is a clear sign of a perfect-for-buy trade. The only thing you are going to need here is to know how to spot these breakouts.

It is the same with breakdowns. As soon as the stocks goes well beyond your level of comfort and breaks the support level it is time for you two to part ways. This little and seemingly obvious tip os going to save you a lot of money and help accumulate your earnings.

 

8. Look at the biggest percentage earners.

Let’s look at is this way. Only by looking at the biggest percentage gainers you are going to know the hottest payers in the field. In case a company rapidly gains a lot of percentage that a potential for a short right there in front of you, and if the company is just changing their policies or simply innovating and attracting new investors, it is a perspective for a trade a little longer and profits even bigger.

 

Ready to trade some stocks?