Traders are often on the hunt for stock tips — anything to help them improve in the markets. I have plenty of tips for you, but first I have to clear up a common misconception about trading…
A lot of people think you have to be a super-smart math genius or have a major in economics to be a good trader. That’s just not true.
I’m not that smart — I’m not even that good at math. And neither are many of my successful students. The problem is that most traders lack discipline. They don’t prepare. Or if they do, they don’t stick to their plans.
Being a good trader means you have to accept that trading is counterintuitive. It isn’t an exact science, and it’s not like any other career. What other careers can give you the potential to make so much money with no special degree or schooling? Not many…
So let’s get into what you need to know to become a self-sufficient trader.
In this post, I give you some stock tips for beginners and lessons to help you get in the right trading mindset. Plus, learn the number one thing I think all successful traders have in common. You’ll have to read to the end for that. Let’s do this!
Table of Contents
- 1 How Do You Get Good at Trading Stocks?
- 2 Is It Possible to Trade Stocks as a Beginner?
- 3 15 Hot Stock Tips From Professional Traders for Beginners
- 3.1 #15) Keep It Simple
- 3.2 #14) Have a Trading Plan
- 3.3 #13) Keep a Trading Journal
- 3.4 #12) Follow the Rules
- 3.5 #11) Cut Losses Quickly
- 3.6 #10) Learn From Your Mistakes
- 3.7 #9) Paper Trade on StocksToTrade
- 3.8 #8) Don’t Trade With Money You Can’t Afford to Lose
- 3.9 #7) Find a Trading Mentor
- 3.10 #6) Manage Risk
- 3.11 #5) Don’t Follow Hot Stock Picks and Alerts
- 3.12 #4) Never Chase
- 3.13 #3) Study, Study, Study
- 3.14 #2) Take Profits
- 3.15 #1) Don’t Force Trades
- 4 What Are the Best Stocks to Trade as a Complete Beginner?
- 5 Conclusion: Use These Stock Tips to Start Trading Today
How Do You Get Good at Trading Stocks?
Getting good at trading is like getting good at anything. It takes knowledge, practice, and experience.
Before you can grow your trading account, you need to grow your knowledge account. You need to study everything. There’s not one book, DVD, or video lesson that’s gonna teach you everything you need to know.
You need to study it all. The past and the present.
Join my 30-Day Bootcamp to start your education. It’s a month’s worth of lessons with daily assignments and homework. And you can work at your own pace and repeat it as many times as you like. Bonus: It comes with “The Complete Penny Stock Course” book and my “Pennystocking Framework” DVD.
If you want to be good at trading, be ready to study!
Is It Possible to Trade Stocks as a Beginner?
But you must have the right perspective and mindset. It’s not gonna happen overnight … but it can happen if you’re committed to doing the work. More and more of my students are showing it’s possible …
My student Roland Wolf recently passed $1 million in trading profits.* Check out Roland’s new program, $1K Paydays. Understand you don’t need millions of dollars to have a great life, $1K a day can be life-changing.
And there’s my student Mark Croock who’s now up over $2 million in profits*. He also trades options — something I don’t do. So you can find success with whatever strategy works for you — when you put in the time and effort.
I have so many other successful students too. Too many to list here. But they all prove that you can learn to trade stocks and grow over time.
Your success is entirely dependent on how hard you work, how dedicated you are to refining your process, how patient you are learning from your ups AND downs & basically just how bad you want to be fucken rich & successful. Learning on your own is tougher so mentoring/rules help!
15 Hot Stock Tips From Professional Traders for Beginners
Looking for hot stock tips for beginners? Here ya go…
#15) Keep It Simple
Trading can be stressful. So don’t make it harder than it has to be. Too many newbies come into trading thinking they’ll catch every move and get rich fast. Not gonna happen.
All of my top students started off trading only a few simple patterns.
#14) Have a Trading Plan
All the stock tips in the world add up to nothing without a trading plan. This is a must. Trading without a plan is gambling. Before you enter a trade, know what your goal is, where you’ll cut losses, and where you’ll take profits. And be ready to adapt once you’re in the trade…
If a stock’s not doing what you expected — get out. Whether it’s a small gain or a small loss, you have to accept when you’re wrong and move on.
#13) Keep a Trading Journal
Include as much information as you can. Then you can go back at the end of the week or month and analyze your performance. You want to know which pattern you traded, your position size, entries, exits, and if you had a gain or a loss.
It’s also smart to note the time of day, your mindset, and your emotions.
And include any mistakes, what you nailed, and anything you could’ve done better. When you review it all, you won’t remember all these little details.
#12) Follow the Rules
You can make your trading individual to you and adjust your rules as you progress and make mistakes.
But my rule #1 is always…
#11) Cut Losses Quickly
This ‘stock tip’ is my rule #1. It’s SO important. If you don’t cut your losses, you’re not trading, you’re investing. And you’re risking everything on that one trade. Because that one time you decide to hold and hope, you’re creating bad trading habits.
Trading should be robotic. There’s no room for emotion. You can’t get your feelings hurt when a trade doesn’t go your way. Losses are part of the game. The sooner you accept that, the better off you’ll be.
And when you have losses…
#10) Learn From Your Mistakes
Everyone makes mistakes — it’s human nature. But what you do about your mistakes is up to you. Will you get upset, freak out, cry about it, and give up? Or will you look back at what you did and learn from it?
You might get upset about losing money or doing something dumb. But try to look at it from a learning perspective: How can you do better next time?
You have to learn from your ups and downs. Be dedicated to refining your process. Getting rich isn’t easy.
I’m not trying to be mean/a dick, just honest & blunt AF because sadly very few people in this industry are. Its a beautiful thing to be able to make 6, 7, 8 or even 9 figures with no fancy degree, office, special talents or skills, intelligence & most of all without any manners!
#9) Paper Trade on StocksToTrade
Too many newbies jump right in and start trading. And they get humbled FAST.
Of course, it’s not as emotional as trading real money. But it’s a good way to get a feel for watching stocks move, placing orders, and entering and exiting trades.
When you do start trading…
#8) Don’t Trade With Money You Can’t Afford to Lose
If you don’t have the money to trade right now, paper trade while you save up enough cash.
Trading with money that you need adds too much pressure and risk. You’ll be much more comfortable trading if it’s not your mortgage payment on the line.
#7) Find a Trading Mentor
When it comes to stock tips, this is key. Sure, you can struggle to figure out all the nuances of the market by yourself — but why do that? Why go it alone? That’s just dumb.
I put out so many resources to help you. It’s up to you to use them. Your success comes down to you. What will you do NOW to give yourself the best chance of becoming a successful trader?
#6) Manage Risk
An important part of trading is risk management. You need to know how much you’re willing to risk on each trade. Whether it’s the same amount each time, like 1% of your account or 1% of the money in the trade.
Find a risk management strategy that works for you. Then stick to it.
#5) Don’t Follow Hot Stock Picks and Alerts
It doesn’t matter how great a stock is if you don’t know how to trade it. Following someone else’s trade alerts and hot picks won’t help you learn how to trade stocks.
That’s why my goal as a teacher is to create self-sufficient traders. My top students don’t need me to tell them which volatile later in the day than in the after-hours market. This is when traders and investors close out positions or spot stocks to buy or how to trade them. They can do that all on their own.
#4) Never Chase
Let’s say you find a hot stock … but by the time you catch it, it’s already up.
You get FOMO and buy in. But then the stock reverses and quickly drops. Hopefully, you cut your losses quickly and learn from your mistake.
But some beginners like to hold, thinking it will go back up. I can’t say this enough — never trust any of these stocks or companies. Always expect the worst.
#3) Study, Study, Study
Trading’s a career with no finish line. There will never be a day when you know everything. There’s no time for laziness. But at the same time, you don’t have to be super smart. You just have to be dedicated to learning the process.
The markets are always changing. You have to constantly adapt and adjust your trading with the markets.
#2) Take Profits
This might sound obvious, but it’s amazing what can happen when you’re in a trade. You can have a big winner and start to think. “Maybe this can go higher…”
Then you watch as the stock reverses and wipes out your gains. Don’t get greedy.
Now to round out my hot stock tips for today…
#1) Don’t Force Trades
You can’t make a stock do what you want. You can’t make a certain amount per trade just because you want to. The market doesn’t care how much money you want to make or what you think.
If the ideal trade isn’t there, don’t force it.
Learn to take what the market gives you. Be patient and let trades come to you. Forcing trades leads to overtrading. Before you know it, you’ve made a bunch of trades, and all your little losses add up to a big disaster.
People come into trading too focused on the money. Forget about the money. Focus on your discipline, the process, the patterns, and executing your trading plan. If you can do all those things well, congrats. You’re on your way to becoming a self-sufficient trader.
What Are the Best Stocks to Trade as a Complete Beginner?
Penny stocks, obviously. Okay, maybe I’m biased, but seriously, I think they’re the best.
It’s important to research all the brokers before choosing one. Make sure your broker allows you to trade penny stocks and OTCs before you open an account.
OTC stocks tend to be less choppy than listed stocks. That’s why I think they’re great for beginners. They also move in patterns that repeat. So once you can recognize them, things can get easier as you go.
Success in the stock market does not depend on intelligence, math skills or how physically or mentally fit you are, on the contrary many of the best traders I know are some of the dumbest, fattest, most undisciplined people you’ll ever meet…no, what matters most is PREPARATION!
Conclusion: Use These Stock Tips to Start Trading Today
I hope you use these stock tips to improve your trading. But after all these stock tips, what’s the #1 thing all successful traders have in common?
There’s no shortcut around it. Once my top students started finding success, they all said it was because preparation met opportunity. You can’t take advantage of opportunities if you’re not prepared.
It’s up to you … How much work do you want to put in? How badly do you want it?
What stock tips would you give to new traders? Let me know in the comments … I’d love to hear from you!