Trading For A Living

Published: 17th November 2014
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There are 7 things you must know if you want to trade stocks for a living… The most obvious thing you must know is… yourself, as in… "Can I really do this for a living?

Sure, it's nice to make a few thousand bucks sitting at your desk during "lunch hour" at work or when you get home after a long day at the office. Noting better than putting your feet up, drinking a glass of wine while making your car payment with the touch of a few buttons sitting at home.

But like Gordon Gecko once warned in the movie Wall Street... "Everyone has good luck and bad luck… got keep fighting... no one like s crybaby when you lose." Or words to those effects.


But first things first… you must educate yourself. Read publications like "Wall Street Journal", or "Forbes" or "Motley Fool", get a good sense of what you are about to get yourself into. This line of work isn't easy (as my father always said, if it was easy, everyone would do it!"). And it is true!

Next, you must decide on a trading strategy. This is not easy and there are a lot of proven methods and results out there that will make you money. One way I know to guarantee to make money is to "Cherry Pick" Stocks whose Dividends are about to "Hit". It's really easy money.

Another sure way, is the "Buy and Hold" strategy- in which you find a good stock or a stock you like and are making money from, you buy that stock and hold on to it. Periodically, keep buying the stock and not worry about whether the price of the stock is too high or too low. That, in the long run, you will make a lot of money.

The "Dollar Cost Average" method is a good one as well; it's very similar to the B&H, in a sense that you hold on to the stock for a long period of time and just add more funds to the stock.


Another stock tip, if you want to make a living in this industry, is to pick stocks that have a good overall trading value, like a good P/E ratio. Not to insult anyone's intelligence, but, a P/E ratio is the Price Earnings ratio, or the price of the stock over its earning (how much it's making).

The P/E number determines if the stock you are thinking about buying is undervalued or overvalued. A very good rule of thumb is using the number 15. If the P/E ratio is around 15, then that means the stock is valued right, not too high and not too low. It's just right!


Some treat the buying and selling of stock like it's gambling, and, it is, in some respect. Since we can't predict the future and the past is not an indication of future results, we struggle to make sense of what seems is a chaotic environment. But there is some conform in knowing that the herd do follow trends and that people do cling to reliable numbers, such as the P/E ratio.

So, with that said, only "bet" what you can afford. Use only the amount of money you can afford to lose. The only way to trade stocks is with money you don't currently need for living expenses. Financial planners suggest having six months of living expenses in a savings account. If your stock trading is not successful in the beginning and you lose money it should cause a dire financial situation. Not Good!

Lastly, start small. As you begin to trade stocks, start with only one or two stocks at a time to get a feel for what it is really like. Trading on paper or playing online stock games does not really prepare you for what it is like to trade in real time.

As you experience and success grows, you can trade more stocks. Many people do make a living from trading stocks, but it takes knowledge, experience and discipline to be successful.

Buy Low Sell High

The Dividend Chaser is a tool that lets you to find stocks with above average Dividends. The "Too Easy" button is a tool that finds good stocks that are being affected by current events.

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