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How to Start Trading Stocks And Be Successful

How to Start Trading Stocks And Be Successful

If you want to start trading stocks, reading this post will help you not to make some mistakes that are very common. And once those mistakes are made, your portfolio is at risk.

As the economy is going down, a stock trader’s life is getting harder. However, a great stock trader will always find a way to make money through stock trading. How could this be even possible? Like in everything else, knowledge is power. The more you know about the trading market, the easier it gets for you to make money from it.

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That’s why even when the economy is not doing so well, a great stock trader will always know what to do, and will also make sure that he’s, or she’s, making profits on his or her invested money. To become a successful stock trader, there are several factors that you’ll need to take into consideration. Until you do so, you could be putting yourself into a lot of trouble.

When you’re trading stocks, you’re investing your money into the companies. In fact, it means that you own a tiny portion of those companies in which you’ve invested your money. When those companies make profits, you do too, but when losses occur, you lose as well.

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However, your losses and the companies losses are somewhat different. When a company loses, that money is gone right away. But in your case as an investor, your money is not lost until you decide to sell your shares. It’ll always be up to you to know whether or not to sell. Some people will hold on and pray that the losing trend reverses and start gaining some of their losses back, while many others would just accept the loss and sell the rest of their shares. It’s a decision you’ll always have to make on your own if you ever get caught up in a situation like that.

How to start trading stocks 

To be able to start trading stocks, you’ll first have to open a brokerage account. It’s through this broker that you’ll be able to execute your transactions. Whether it’s to buy or to sell your shares, your broker will be the middle man. The requirements are not much; you’ll have to be at least 18 or 21 years of age depending on the state where you live, and you’ll also need to have a social security number which will be used as your ID number and for tax purposes.

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You may find it a little difficult to pick a broker because there are many of them. It’s extremely important that you pick the right one for your trading habit. All brokers are not created equal; they have their individual characteristics. When it comes to fee per transaction, it varies from broker to broker and those fees can significantly affect your portfolio.

Once you’ve been registered with your broker, you can then fund your account to be able to start trading. There are different paths through which you can send money to your brokerage account. The fastest routes are via electronic transfer and wire fund transfer. Electronic transfer is free of charge; it’s just like a bank-to-bank transfer that you can do on your own. However, a wire fund transfer will cost you a fee – some banks will charge you a fee of $25, but this fee varies depending on the bank. If you aren’t in a hurry, you can mail in your check or do a money order which won’t cost you any more than your mailing fee.

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What should you do next to make sure you’ll be making a profit?

If you don’t know anything about stock trading, the best thing to do is to sit down in front of your computer and start researching. Not conducting any research is one factor that’s causing so many traders to lose their hard earned money. You don’t want to be part of this group of people. For this reason, you’ve got to conduct your research before you buy any stock.

It’s not difficult at all if you know what to look for. But if you don’t know anything about the market, I’d suggest that you start by doing paper trading instead. Once you feel that you’re ready for the real thing, you can move on and start using real money. There are many websites out there providing free paper trading platforms; they’re very helpful if you’re looking to learn the tricks. Wall Street Survivor is the one I used to utilize; it’s very easy to navigate through. You can take a look at it to see if you like it, if not, you can always find many others on Google.

If you do so, you should be able to perform better than many stock traders out there who are trading on luck. You may need a little luck sometimes, but your education is the secret to becoming successful trading stocks. You may have heard of several individuals who become millionaires from the stock market. If you take your time to read their stories, you’ll see how much time they’ve spent on their education before they were able to attain such a goal.

Educate yourself, don’t rush to trade just because you want to. The more you know about the market, the better it is for you. One day, you will also be successful from stock trading.

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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