Posts

Showing posts from February, 2019

Stock Trading Psychology

Image
When you break down the stock market to its fundamental level, it really is just buyers and sellers pushing the stock up and down, respectively. There are moment when the buyers overwhelm the seller and the price spikes higher. And there are moments when sellers overwhelm the buyers and the price drops significantly. Wouldn't it be great if you knew when and where these events are going to happen? This is where Trading Psychology comes in! Technical Analysis   Technical analysis works because people believe it works. Its a bit of a paradox but it absolutely makes sense! If you think about it, when a stock reaches a support level and people think it will bounce up from that level, naturally, buyers will come in and drive the price up. You can see this happening in the green circle in the photo on the right. Once it breaks that support level and trades lower, traders now see that support level as resistance and sell at the level, pushing the price down, as you can see happ

Beginner Stock Trading FAQ

Image
How Much Money Do I need to Start Trading?   $0. Yes you can trade for free, with a simulation account, but of course you won't make any money. If you do want to risk some real money you can technically start with as little as $1 with some brokers I'll talk about in the next question. With a simulation account, like I mentioned, you can trade with "fake money" aka paper trading, which is a good way to practice trading without risking any of your hard earned money.   Paper Trading There are several paper trading websites you can use to practice trading stocks for free. I recommend using TDAmeritrade's Thinkorswim system because they have a very clean layout and you can find many how-to videos on basics for using their application. Here is a link to get started: https://www.thinkorswim.com/t/index.html#!/pmregister Real Money Trading If you are thinking about getting started with real money, I'd recommend using a small account (under $1,000). Of