How To Get Into The Stock Market
Before you can become my next millionairestudent, you have to begin trading and before you do that, you have to figure out how to get into the stock market.
The cool thing is that it’s actually quite easy to become a trader. You don’t need any special degrees or certifications. Basically all you need is a brokerage account with one of these brokers, a laptop, and an internet connection. However, these are just the technical requirements…never forget that 90% of traders lose so you must do everything you can in order to avoid becoming just another statistic…
To truly get into and earn consistent profits in the stock market, you’ll need a little more than that, namely knowledge and preparation so start by reading a free stock market guide here and read this book ASAP too…and watch this useful guide too if you’re really serious about your education!
Below, I’ll also detail what you really need if you want to learn how to get into the stock market.
1. Lose some money. To really get going as a trader, you might need to lose some money. I am saying this only half joking. Many of the students who come to the Tim Sykes Millionaire Challenge find me because they have lost money trying to become a trader with no knowledge or preparation so they see what it’s like to trade based on their gut instinct and the results are usually horrific. The good news is that losing money can be a powerful motivator for many new traders to actually begin to learn the rules of trading.
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While nobody wants to lose money, sometimes it can be a sobering reality that actually motivates people to learn how the stock market works, so in that way it can be a good “investment” for some. If someone comes to my challenge and they’ve lost $500 or $1000 or sometimes even $5,000 or $10,000+, they’re likely to not want to do that again and they actually begin taking my trading rules like these seriously.
2. Do some fact finding. If you want to learn how to get into the stock market, start with a fact finding mission. Google day trading, penny stock trading, and any other facets of trading that might interest you. A great place to start is with my free E-Guide to Pennystocking 101. This guide will teach you some of the basics. It includes an introduction to trading, as well as many key phrases and definitions. While it’s not the biggest guide, it’s a great starting point.
3. Listen and learn. Once you’ve assembled some basics about the market, begin to listen and learn. Read all that you can about trading. Tune into podcasts like the Steady Trade Podcast, that are geared toward helping new traders succeed. You can also begin to read about successful traders and what their trajectory has been. Often, things like this can inspire you to take particular directions as a trader which will be helpful.
4. Join my Tim Sykes Million Challenge Team. But it’s not just because I started it. It’s because of what it represents.. Of course I think you should join the
When I began my journey as a trader, I did not have a mentor. I was ultimately successful, but not because it was easy. I was able to make money because I was dogged in my efforts and didn’t let my losses get me down. I was obsessive on my journey.
I recognize that not everyone is willing to stick with it through all those ups and downs. And the fact is, they don’t have to! Traders can benefit from learning from my mistakes, which means that their ascent to success can be easier than mine. If there is a benefit to having learned things the hard way, this is it for me. I want to help other traders to cut through the BS so that they can fast forward to being the best traders they can be.
5. Study obsessively. Before you start trading, you need to develop some strong study habits. Not only will this help you amass trading knowledge quickly, but it will help you develop good research habits that will help you as a trader later on.
By studying, I am referring to a variety of sources. If you’ve joined my, you’ll want to watch the videos and read through the study materials. But you’ll also want to start studying stock charts. Even if you’re not trading yet, beginning to look at stock charts will help you begin to be able to identify patterns that will serve you later on.
6. Paper trade. For many traders, paper trading is a first step toward making actual trades so check it out using this software. Basically, paper trading is like simulated trading. Actually, it’s even sometimes called “virtual trading”. When you paper trade, you get to practice trades without actually investing your money. Sure, it might not come with the adrenaline high of trading real money, but it’s a safe way to get a feel for the trading process. It’s much easier to deal with making mistakes in the virtual sphere than actual trades with your money. Paper trading can be very educational.
7. Open a brokerage account. To actually trade, you’ll need a brokerage account, here are my favorites (I don’t get compensated by them, I just share with you the brokers I use)
It’s important to choose a good broker as a trader because this is basically how you’re going to execute your trades. You don’t want to be surprised down the line by fees or percentages that are higher than you thought. Be sure to do your research on brokers before committing.
8. Focus on some key setups. Particularly when you’re new to trading, you don’t want to get overwhelmed. So instead of scattering your attentions in a million different directions, instead begin to zero in on a few key setups.
In the my, I introduce my students to several key setups and patterns. While patterns are ever changing, beginning to identify styles of trading can help students begin to take direction. This can help them try different things in paper trading to see if they work. Once you begin to find success in that way, you may be more comfortable progressing to actual trades. By focusing on a few key setups versus a manic approach, you’ll be able to refine your methods.
9. Go slow. Don’t expect things to happen right away. A lot of people who are drawn to day trading do have extreme, black and white views on the world. However, you need to be able to back up and have some patience when it comes to day trading.
Adjust your expectations. Don’t expect to find success right away. There will be ups and downs as you find your way as a trader and develop a style. If you expect to make money right away, you’ll likely end up disappointed. By giving yourself time to develop and grow by going slow, you’re far more likely to have positive results.
10. Learn from your mistakes. Not to be a downer, but you are going to make mistakes as a trader. This is true for new traders, but it will continue to happen as you advance, too. After all, I’m wrong in plenty of trades. However, I keep my losses small, and I learn from my mistakes.
Learning from your mistakes is a key aspect to becoming a strong and long term trader. To expect to not make mistakes is simply unreasonable. However, if you can look at your mistakes and learn from them so that you don’t make the same mistake again, they can act as powerful teachers. Keeping a trading journal can help in this regard, because you can track your mistakes and successes and as you review it over time, you can identify patterns in your own trading that can be adjusted.
11. Learn from other traders. If you want to know one of the true secrets to how to get into the stock market and stay there, it’s this: learn all that you can from other traders. This includes finding a mentor who is further along in their career than you and learning from their experience. It also includes watching what other traders are doing and learning from their successes (and failures).
Looking at what other traders are doing can help inspire your own trading. Of course, copying another trader will never work out well. There are too many factors involved, and you can never emulate someone completely. However, seeing other ways of thinking, trading styles, and trajectories can inform and inspire you on your journey.
12. Expand your knowledge base. Remember what I said about studying earlier? Well, a continued dedication to expanding your knowledge base is important as a trader. For one thing, continuing to learn will help you be better able to adapt to market shifts and changes. When the market changes and your go-to setups aren’t working any more, having a large knowledge base can help you make changes that can help you stay profitable…know this pattern and this pattern inside out.
Being a lifelong learner will also make your mind more flexible, so that you’ll have better problem solving abilities as a trader.
What’s the conclusion about how to get into the stock market? It’s not easy, but it’s worthwhile. You’ll have to consider many different things, expand your mind, and work very hard to be a successful day trader. But as many have seen, it’s worth the effort.
Are you ready to enter the stock market? Leave a comment below and let me know!