Most people try to achieve unreasonable financial goals when trading stocks; but having a profit target of approximately $200 per day may be realistic and achievable. Stock trading is not about taking chances neither is it about buying lottery tickets and hoping to win. Trading stocks is just like any other full-time job which requires dedication and hard work and a considerable amount of sacrifice. Yes, it can pay well and offer much more flexibility and liberty than most careers, but, it is also about refining your skills constantly.
As a newbie trying you hand trading stock, it is wise to look for decent returns from your investment like $200 daily. It doesn’t mean you are not going to have good days, flat days and bad days; it implies that you have the potential and determination to earn $200. If you do that, you’re on the right track to a fantastic career in trading stock. You have the skills to identify and trade stocks, and to exercise self-control from over-trading. You may also get a profit of approximately $60,000 a year which is not bad for trading for a few hours per week.
This article shares with you the tips for achieving your goal of earning at least $200 per day by trading stocks. Keep reading to learn how you can achieve your goal before investing your money in stocks.
Tip #1: Master 2-3 Trading Strategies Instead of 30
It might be tempting to explore several strategies so as you don’t lose out on price movements. There is no point in studying 30 strategies if you can’t apply all of them at once.
Therefore, choose two to three strategies that work well for you, and concentrate on those. Hopping around, attempting to be a master of all trades and borrowing from a variety of platforms is a common misconception. There is no point in employing 15 different approaches and lose your money when you can implement 2 strategies and make a profit. You will need to learn and execute a few strategies, perfect them before trying other strategies.
Tip #2: Have the Real-Time Scanners Ready
Besides your regular premarket research, you can also consider establishing a watch list to alert you of price changes in stocks that you don’t track regularly.
Most stocks do not display shifts in premarket prices that occur during the normal trading hours. Some good trades stem from real-time scanning and several stocks may change premarket by approximately 1% and mere analysis may not detect it. Unfortunately, there are not many decent scanners; but, some websites like trade-ideas offer a variety of scanning tools to choose from.
You can also access various chatrooms, like the one in Tradenet where you can learn from experts and other stock traders.
Tip #3: Avoid After-Hours and Pre-Market Trading
After-hours and pre-market hours have fewer shares traded relative to normal trading hours. The price fluctuations can be large and are always unstable; the spread is also generally greater than the regular trading hours, making it risky to trade during these hours. Thus, as a beginner, you need to avoid stock trading during the after-hours and pre-market hours. As you become more experienced, you can trade during these hours with reduced shares than you could in normal trading hours.
Tip #4: Practice and Simulate
When you are learning how to drive a car, you don’t immediately accelerate on a busy road. You spend some time getting acquainted with the commands, and then you drive down the street within your neighborhood and perhaps practice how to park in an empty parking space. So, why should stock trading be different? You don’t want to risk your money before you close a short position, or scan stocks while looking at your positions. Multiple resources are available that allow you to practice without spending actual money; before you embark on live stock trading, you can use free websites like Windsor Brokers for your practice.
It’s easy to make $200 a day if you are prepared to learn and adjust. Start by setting ground rules for yourself and ensure you obey them every day. In addition, you need to identify and weed out bad stock trading practices and behavior. Moreover, it takes time to become a good trader because you need to gain experience and skills in reading charts and monitoring real-time price changes. In a nutshell, you need to start small, be patient, ready, and willing to learn.