Have you ever wondered if it is
really possible to make money with
stocks?
And how do you do it?
How do you start trading stocks?
In this video, I'll show you a step
by step guide on how to get
started.
Now, before we get started, let
me tell you a quick story.
In 2001, I had a corporate
job.
I was working for IBM.
And I did what most people do,
get up early, sit in traffic
while driving to the office, follow
the rules, be a good worker
and try to save money for
retirement. To be honest,
I wasn't very good at the saving
part.
You see, I made money and I
spend it.
It seems that by the end of the
month there wasn't much money left
and I thought to myself, there must
be an easier way to
make money.
You see, I was always fascinated
by the stock market.
I looked at the chart of the Dow
Jones and I realized that it had
quadrupled in the past
10 years.
The Dow went from
2,500 to 11,000.
So this means I could not only
double my money, I could quadruple
it and maybe even more.
And that's when I decided to get
serious about trading stocks.
The question, how to start
trading stocks? Making
the decision to start trading,
that was easy.
But now I had many questions.
What software do you need?
How do you open a trading account?
What broker should you use?
How do you pick the best stock to
trade? When do you enter?
And how long do you hold
the stock?
When do you take profits?
And what happens if the stock goes
down?
Will I lose all my money or
can I limit my losses?
So I started my quest and I made
a lot of stupid mistakes that
cost me a lot of money.
One of the worst mistakes that I
made was listening to
a broker.
That cost me
$25,000.
But that's a story for another day.
Right now, I want to share with you
how to start trading stocks in five
steps.
Step number one, decide
what to trade.
You see, you can trade stocks or
options, currencies, which is also
known as Forex.
You can trade futures,
cryptocurrencies like Bitcoin,
ETFs, penny stocks.
The list of possibilities is long
and confusing.
Here's what I suggest.
Learn how to trade stocks
first because it's the easiest
way to get started.
And once you know how to trade
stocks, it's easy to learn
how to trade options, ETFs, and
even futures.
Don't let others confuse you.
Some people will tell you that you
should start trading options,
and some people will tell you that
you should start trading Forex.
Some people will tell you that now
is the best time to trade
cryptocurrencies and they
all will have a compelling argument
for it.
Most of the time they will tell you
you can start with as little as
$500 and your risk is limited,
but your reward is unlimited.
You can double, triple and quadruple
your money in a very short amount of
time. You know what?
Don't fall for these promises.
Keep this in mind.
The fastest way to lose all
your money is trying to double
it quickly.
So, learn how to trade stocks.
And once you start making money with
stocks, you can always add options,
ETFs, futures, and
maybe even currencies to the mix.
Step number two,
get a trading strategy.
Now, this is extremely
important and I've learned that
the hard way.
Because in the beginning of my
trading career, I did not
have a trading strategy.
Here's what I did instead.
I listened to the news, I
followed the "gurus" and their
advice, and I bought stocks
based on my opinion.
Big mistake.
All of these approaches made me
lose money.
I realized that I need to have
a super solid strategy
that does the following.
First, it needs to have rules
that show me exactly what stock
to trade. No more opinions,
neither from me or from the
gurus.
Number two, I need to have rules
that tell me exactly when to buy
the stock.
And number three, I needed to
have rules that tell me exactly
when to sell the stock.
Either with a profit or with a loss.
So I started learning about
trading indicators because they
are easy to use,
super reliable and
accurate.
By the way, if you're interested in
the trading strategy that I
personally use, how I
use these indicators, then
go to mytradingroutine.com.
That's a website that I built that
shows you exactly how I
find the best stocks to trade, how
I make my decisions, when to buy the
stock and how I limit my risk.
But let's move on to the next step.
Step number three,
practice on a demo
account.
Oh my God.
This is another big mistake
that I made.
When I was new to trading I was so
excited that I wanted to start
trading right away, after all, I
took the time to develop a trading
strategy and now
I wanted to make money.
So I started trading with real
money and I lost
money because I made
mistakes.
And you know what?
That's normal.
When you start something new you
will make mistakes.
Here are some of the mistakes that I
made when I started.
I bought when I was
trying to sell.
Yeah, and I traded 1,000
shares instead of 100 shares.
Also, I bought at 33.03
instead of
30.33. You see, a small difference
in numbers, but making a big
difference. And I bought
AM instead of
AMD.
Again, just one letter, but
huge difference trust me.
And see, I made many, many
more stupid mistakes.
Now I'm sure that you're probably
much smarter than me.
And yet practice
on a demo account first for
two reasons.
See, the reason number one, make as
many mistakes as you want
when trading "paper money" because
it doesn't matter.
And number two, prove to yourself
that you're trading strategy
actually works.
I recommend that you do at least
40 trades on a paper account
because this way you get
statistically significant results
and you have a chance to make
at least 5 mistakes.
Is this making sense thus far?
Because if it does, then click the
"Like" button and write, "Yes,
this makes sense" in the comments.
Okay, after practicing on
a demo account, then you're ready
for the next step.
Step number 4, open
an account with a broker.
See, this is actually
the easy part.
And here's why.
Since October 2019,
most brokers no longer
charge any commissions.
See, previously you had to compare
different brokers and decide whether
you want to pay more commissions
and better support or fewer
commissions and no support.
But all this has changed.
These days, all major
brokerages offer zero
commission trading.
So just pick a broker,
go to their website and open an
account.
It's quick and easy and will take
you less than 10 minutes.
And here are some great stock
trading brokers that I
can recommend.
TD Ameritrade or Charles
Schwab, E-Trade,
Fidelity, Interactive
Brokers or Robinhood.
And your account will be ready
to trade in one to two days.
Now, before we move on to the last
step, is this helpful?
Because if it is, make sure to
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hit the little bell, because this
way you get notified whenever
I release a new video.
So let's move on to the last step.
Step number five,
start small and grow
big.
Don't risk the bank on your first
trade.
Try to make a $100
and then do that again.
Prove to yourself that you can make
$50 or $100
before risking more.
Think about it.
How do we learn to drive a car?
You see, when my son Julius was 15,
we went to the school parking lot
and drove around at 15
miles per hour and he
still hit the curb, right?
But once he got some practice
and he got better, we went to a
quiet neighborhood with a speed
limit of 25 miles per hour.
And he was white knuckling
it. But you see after some practice
we went to a neighborhood with a
speed limit of 35 miles an
hour. And you get the idea.
We slowly but surely increased
the speed and the difficulty.
Now it took us weeks, but
then he got it and now he's a really
good and safe driver.
Now can you imagine what would have
happened if he went straight to a
busy interstate during rush hour
for his first driving lesson?
It would have been a disaster.
The same with your trading
account.
If you can't make money with a
$10,000 account, you won't be able
to make money with a
$100,000 account, right?
So start small
and grow big.
In summary, now you know the
five steps on how to start
trading stocks.
And for most people step
number two, finding
a proven trading strategy is the
most difficult step.
So let me make it easy for you.
If you would like to know how I
personally trade, how I find
the best stocks to trade, the ones
that are ready for an explosive
move, when to enter these
stocks and when to exit then
go to mytradingroutine.com and
I have a video for you there that
shows you everything in detail.
Anyhow, good luck and let me know
if you have any questions.