Doing Stocks Trading on Your Own
Stocks can be an investor’s gold mine or hell on Earth. If you want to do stocks trading on your own, you should already know the risks involved, and the benefits of hiring a broker. Just the same, you can trade do-it-yourself way, and it’s possible to minimize losses by doing well-thought actions and taking calculated risks.
- Access an online trading platform where you can trade without a broker. Doing so, you bypass the need to pay transaction and brokerage fees, which are otherwise paid to brokers trading on your behalf. Check out E*Trade, Fidelity and TD Ameritrade if you want to be your own broker.
- Open an account specifically for stock trading. This is to cap your investment spending, especially when you’re still new on board. The minimum equity requirement and maintaining balance for DIY trading (day trading) is around $25,000. Foreign exchange trading requires a lower cap, but this is an entirely different topic.
- Be ready with your professional trading platform and reliable Internet connection. These are your tools to become an effective day trader or stock trader from home. A day trader buys and sells stocks with cash and ends the trading day with rarely an open position (sell all that you buy at closing).
- Become familiar with the stock market fundamentals and making technical and financial analysis. Remember, you don’t have a broker to hold on to, to coach you, or to make trading decisions for you.
- Design trading techniques and strategies that you can adopt into your day trading routine. There’s no right or wrong answer here, but the gauge is how much money you lost or earned at closing. Identify your entry and exit points, and always stick to that plan. Be a disciplined trader. Don’t be too greedy or too excited. Don’t be too cautious either.
Statistics say that only 10% of day traders or DIY traders succeed. That leaves a lot of room for winners, and also a lot of room for losers. The only surefire way to become one of the top 10% of day traders is through expert research and analysis, great trading discipline and desire to take calculated risks the next time, even after a losing day.