If you’re looking for success in the stock market, you need a blueprint to follow. That’s why I’m sharing my best stock market tips for traders.
Here’s the thing: I didn’t have a mentor when I started out in the stock market. It was just me and my computer. I figured it out as I went, turning $12,000 into more than $100,000 before I graduated high school. But it was far from easy and I made a TON of mistakes.**
You don’t have to go it alone. Instead, you can take advice from someone who’s been there and knows the ropes. Check out my 37 best stock market tips so you don’t make the mistakes I did.
Table of Contents
- 1 Top Stock Market Tips and Recommendations
- 1.1 Tip #37: I trade small-cap stocks, better known as penny stocks
- 1.2 Tip #36: Penny stocks are ideal for the average trader
- 1.3 Tip #35: I am grateful for every single dollar that I make, including the losses
- 1.4 Tip #34: Small gains add up over time
- 1.5 Tip #33: The stock market rewards knowledge and strategy
- 1.6 Tip #32: Losses aren’t bad if you can contain them and learn from them
- 1.7 Tip #31: Treat every trade like a business
- 1.8 Tip #30: I am never 100 percent certain about any stock
- 1.9 Tip #29: I will never try to catch the exact bottom or the exact top of any stock move
- 1.10 Tip #28: You don’t have to be bullish all the time
- 1.11 Tip #27: Cut losses quickly
- 1.12 Tip #26: I only trade gimme-setups
- 1.13 Tip #25: Buy breakouts
- 1.14 Tip #24: Short breakdowns
- 1.15 Tip #23: Sometimes I like to dip-buy when support holds
- 1.16 Tip #22: I only look at the biggest percent gainers
- 1.17 Tip #21: K.I.S.S. — keep it simple stupid
- 1.18 Tip #20: Don’t risk a big disaster when you can cut losses
- 1.19 Tip #19: You do not have to trade every day
- 1.20 Tip #18: Never feel uncomfortable in any trade or investment
- 1.21 Tip #17: Always live to trade another day
- 1.22 Tip #16: My goal is to make between 20% and 50% within a few hours or days
- 1.23 Tip #15: I’ve become a better trader and teacher over time
- 1.24 Tip #14: Use a trading journal
- 1.25 Tip #13: If you’re going to set goals, be sure to make them count
- 1.26 Tip #12: I act like a retired trader
- 1.27 Tip #11: Never follow anyone else’s alerts — not even mine
- 1.28 Tip #10: Most stocks follow the market
- 1.29 Tip #9: You need to short-sell stocks
- 1.30 Tip #8: View this as creating a lifetime of wealth
- 1.31 Tip #7: Trade the actual stock
- 1.32 Tip #6: Avoid FOMO at all costs
- 1.33 Tip #5: Tools like StocksToTrade helps dramatically
- 1.34 Tip #4: I have many small losses and small gains, but they don’t move the needle on my overall account growth
- 1.35 Tip #3: No one trade will make you rich enough to never have to trade again
- 1.36 Tip #2: Your approach to trading will dictate your success
- 1.37 Tip #1: Look for a mentor/group of successful traders who can speed up your education
- 2 Stock Market Tips For Beginners
- 3 The Bottom Line
Top Stock Market Tips and Recommendations
Keep in mind that these stock market tips come from my own experience. They’re what I’ve learned over more than two decades of trading, and they come from my deep desire to help others succeed.
Some of them incorporate my personal preferences. You might discover that you prefer trading in different ways. That’s okay. Try my tips, decide if they work for you, and keep pressing forward in your journey to stock market success.
Tip #37: I trade small-cap stocks, better known as penny stocks
Small caps are extremely small stocks that have very low market capitalization. In other words, they’re not worth billions of dollars, and they don’t have high liquidity.
That sounds bad, right? But it’s not.
When you’re a new trader, you don’t have hundreds of thousands of dollars to play with. At least, I didn’t. So I discovered penny stocks. Even if you have a small trading account, you can still profit.
Tip #36: Penny stocks are ideal for the average trader
In my opinion, penny stocks are ideal for the average trader. They’re very volatile, which makes them good for small accounts.
At first, I started with $12,000 and my accounts weren’t growing at all. I was investing in big companies, and my account would go from $12,100 to $11,900. For several months, my account didn’t do much.**
When I started gravitating toward lower-priced stocks, back in my first year, I went from $12,000 to over $100,000. You can’t do that with big companies.**
If you’re new to trading or if you’re not having much luck, consider penny stocks — also known as small-cap stocks. They’re cheaper, more volatile, and far more exciting than traditional stocks. Plus, you can take income much faster, which will motivate you to trade more.
Tip #35: I am grateful for every single dollar that I make, including the losses
I don’t want you to think that I’m winning 100 percent of the time or that I’ve never had losses.
I’ve had big losses: $10,000, $50,000, $100,000. In fact, I actually lost $500,000 on one trade, but I’m grateful for it all because it has made me the trader and the teacher that I am today.
And believe it or not, you need to have losses. You need to make mistakes. It makes you a whole person. Ideally, you can control the losses, though. I’ll get into that more later.
For now, though, understand that gratitude makes the trader. If you don’t care about the money flowing into your account, or if you’re not grateful for the luxuries that money affords you, what’s the point of it all?
Tip #34: Small gains add up over time
Don’t go for home runs. Go for singles, okay? You can call me Ichiro if you’re a baseball fan. I have a lot of singles. My total profit gain is now $4.39 million.** However it took 3,796 trades to get there.
Just think about that for a little bit. A lot of people think that you have to make a million dollars in one trade — that you’re going to find the next Facebook. Trust me, you’re not.
So, for me, I want to take singles because they offer better odds. If you’re conservative and take your small gains as they come, you can build your wealth strategically and without huge risk.
Tip #33: The stock market rewards knowledge and strategy
Too many people are conditioned to rely on nine-to-five jobs with constant paychecks. The stock market doesn’t reward the time that you put in — it rewards knowledge and strategy.
Some of my most profitable trades only took a few hours.**
With trading, it’s all about you. And the more that you do in terms of studying and strategy and preparation, the better off you’ll be.
Some days, you don’t even have to work. You don’t have to call in sick. You don’t have a boss. You don’t have a cubicle. It’s freedom. So think about that when you want that constant paycheck that pays so little.
Make your goal to get the most profit from the least amount of work possible. In other words, focus on making every trade count so you’re not working the nine-to-five grind for the rest of your working life.
Tip #32: Losses aren’t bad if you can contain them and learn from them
Losses are an essential part of your education. As I said, I don’t win 100% of the time. If you actually look at my trades over the past nearly two decades now, I’m winning roughly 74 percent of the time.**
That’s not bad — about double the percentage of those analysts on CNBC. But still, I’m not winning 100% of the time. I have to be prepared for the eventuality of being wrong.
We’re all human. Nobody’s perfect. It’s okay. But part of what I teach, and part of the essential education that I provide, is how to react to losses. Contain them, manage them, and use them to get better over time.
Tip #31: Treat every trade like a business
Many traders want to dive in without doing research. They simply make a best guess so they can start trading. They just want in on the action.
As a result, they don’t come up with a reliable strategy, so they’re trading like snipers, picking off stocks one by one — and losing.
I don’t want action. I don’t want to play guessing games. If there’s a stock and I don’t know the industry, or I don’t know what’s going to happen, I don’t trade it. The problem is that most people try to conquer everything with Wall Street. They think that they know every industry and every stock, and that they’re smarter than everyone.
If you look at every trade like a business transaction, the game becomes clearer. To boost your odds of winning, get as much information as possible.
Tip #30: I am never 100 percent certain about any stock
This is not about illegal inside information. I use my experience and my knowledge so that I trade predictable patterns that I have always focused on for more than 20 years now.
Every single trade is new and different. But the patterns don’t change much because human nature doesn’t change.
If you can learn the basic patterns, it won’t always going to be exact, not the exact same stock prices or the exact same days or patterns, but for the vast majority of the time, it’s pretty much the same. And that’s where my profits come from.
I can’t be 100 percent certain, but I can fall back on my knowledge and understanding of the stock market to win more than I lose.
Stock prices are unpredictable, especially with pennystocking … that’s why I never stay in a play long enough to catch the bottom or top of the move.
In fact, I usually only profit from roughly one-third to one-half of the move, selling too quick or selling too late.* Perfect timing is a myth. Focus on growing your overall net worth — not perfection.
I know this is tough for a lot of people because they say, “Hey, but you’ve made millions. Your students are making millions from a few thousand dollars**. There has to be something that you’re doing, like catching the stock perfectly.”
No … we’re learning to take the meat of the move.
I know it’s tough to believe, but very rarely will you ever see me catch the exact bottom or the exact top on a trade. All I’m trying to do is use every single trade to grow my overall net worth. Slow and steady wins the race.
Tip #28: You don’t have to be bullish all the time
It doesn’t matter if the market is up or down; I find opportunities in all markets.
This is probably one of the best things about my strategy. I know the money is nice; the freedom is nice; the geographical freedom is nice. But also, I’m not only making money in bull markets, like most people do.
I make actually more money in bear markets.
I make money in bull markets, too. But I’m not biased like the vast majority of people are. And that gives me a huge advantage, especially over time.
Because, over the course of your life, you’ll see the markets go up and down a lot. I don’t want you to have to take one or two or three or sometimes even five or 10 years off of trading if we have a great depression where there’s no opportunities.
If we have another great depression, most people will be out of work. Most people will be depressed …
I, on the other hand — and my students — will be trading the same old opportunities that pop up in every bear market. It’s kind of cool. I hope that there’s no great depression, and I don’t think that there will be. But if there was, my strategy is fine. That’s the coolest thing here.
If you learn how to buy, sell, and short stocks, you’ll probably be fine. They help you potentially profit in any environment because it doesn’t matter which direction the stock moves.
Tip #27: Cut losses quickly
My top students and I are often wrong, but we cut losses quickly. We do not let small mistakes turn into big disasters.
As I said, I’m winning roughly 74 percent of the time**. So, 26 percent of the time, I’m wrong.
But during that 26 percent of the time, my losses are much smaller than my gains. Even though I’m winning more often than I’m losing, my gains are also bigger than my losses.**
It’s very difficult, given my discipline, to not make money over time. Because I’m winning more of the time percentage-wise and I’m winning more dollar-wise. If you’re willing to cut losses instead of waiting for a rebound that might never occur, you’ll probably experience more success.
Tip #26: I only trade gimme-setups
One of my haters actually sent me an email one time to say, “You know what? You only trade the easy patterns. Let me know when you want to be a man and you trade the difficult patterns.”
I just responded, “LOL,” because, yeah, I trade gimme patterns. That’s not a bad thing.
This isn’t like Olympic diving here, where there are judges who are going to rank me based on the degree of difficulty. I trade easy setups. They make less money than most people on Wall Street.
I’ll go into more detail in a minute, but for now, just know that there’s nothing wrong with trading easy setups. In fact, it’s the smart play because you’re mitigating risk.
Tip #25: Buy breakouts
Breakouts are just one example of the gimme patterns I described above. A breakout happens when a stock shoots above resistance. It happens all the time, but you need excellent technical analysis skills or great software to predict them.
My software, StocksToTrade, has helped many people spot breakouts and benefit from them. You’re looking for a very specific pattern that have huge potential. A stock might waffle between support and resistance for a while, then suddenly break through. That’s when nice profits can happen.
Tip #24: Short breakdowns
This is the exact opposite of buying breakouts. When you short breakouts, you’re betting that a stock is going to fall through support.
Since I’m taking a short position, I can profit off a stock’s falling price. This often happens after a specific catalyst or when there’s too much volatility. Using software like StocksToTrade can help you spot potential breakdowns so you can short them for profit.
Tip #23: Sometimes I like to dip-buy when support holds
The risk in dip-buying is that support can crack. Let’s say a stock is bouncing right around support, but the support is holding for an extended period of time. It might bounce a little higher each time, but it doesn’t look like it’ll crack support.
I might buy to catch the bounce in this situation. I can make a neat little profit for my trading account, and it’s not as risky.
Just be aware that support can crack at any moment. If you buy at the wrong time and the stock falls below support, exit your position immediately to avoid further losses.
If you don’t have a plan before you get in — if you think, “Oh, I’m just going to buy this stock. It looks like it bounces every time — you’re asking for trouble.
What you have to say is, “This stock might crack through support.” And if it does, you need a plan. But if you have a plan, it’s not that scary. Sometimes I’m wrong, and I cut losses quickly. It’s not the end of the world.
Tip #22: I only look at the biggest percent gainers
I want to know the hottest stocks in the market right now. Also, if their news is based on solid earnings or a contract or a partnership with a big company, then it’s a potential buy as long as that news is what caused the big percent gain.
If the big percent gain is caused by a paid promotion or media mention, it’s a potential short. Because that kind of a catalyst does not last.
As I talked about in , “An American Hedge Fund,” the insiders are only looking to pump up the stocks for so long so that they can get out. Once they get out, there’s no more promotion and the stocks crash.
Definitely watch the movie “Boiler Room” if you haven’t seen it. Sometimes a company will have 50 different promoters sending out email blasts promoting it. If that happens, it’s still a potential short, because those are very temporary catalysts, as opposed to good earnings or a contract with a big company.
Tip #21: K.I.S.S. — keep it simple stupid
As Leonardo De Vinci said, “Simplicity is the ultimate sophistication.”
A lot of people will look down on my strategy. They look down on penny stocks. I don’t care what you look down on or look up to. I just want to make money, and keeping patterns simple, keeping news simple, and keeping catalysts simple works the best for me.
I know that there’s a whole bunch of advanced indicators with RSI and Bollinger Bands, and Fibonacci retracements. None of that stuff has been very reliable for me. I’ve tried it all, but I only teach you the things that have worked best for me, and I’ve been experimenting for well over two decades now.
So my question to you is, do you want freedom or do you want prison?
I want freedom. I want to work on my laptop no matter where in the world I find myself and trade when there’s something that looks good to me. I don’t want to be chained to 10 monitors in an office on Wall Street, risking my blood pressure and heart health over a play that might lose me — or my customers — millions of dollars.
Again, I want freedom, not prison. And I definitely don’t want stress.
Tip #20: Don’t risk a big disaster when you can cut losses
I touched on this earlier, but I want to hit it again. My top stock market tips include cutting losses and avoiding big disasters. Really, they’re one in the same.
Let’s say, for example, you buy a stock at $10 per share, expecting it to bounce to $11 or $12 per share. Instead, it cracks support. You watch it fall: $9.87 per share, $9.76 per share, and so on.
You have two choices here. You could exit the trade and cut your losses or you could hold on to hope that it will bounce back and save your trade.
I opt for cutting losses every time. I might miss those occasions when the stock rallies, but I’m potentially big disasters in the process.
Tip #19: You do not have to trade every day
Wait for the best setups. They can make you rich. This is so, so, so important.
A lot of people think, “Okay, I’m ready for this, Tim. I want to do this. I’m ready right now. Let’s trade every day. I’m ready to go.” That’s not necessarily going to make you the most money.
Having the right perspective will. Sometimes, taking a day off when there’s no great trade is actually the best thing to do. Sometimes, the best trade is to not trade at all. Having no positions is an option. It’s just not an option for people who are degenerate gamblers who want action all the time. Don’t be that way.
One of the best stock market tips I can give you is to step away from the computer. You’ll get to trade tomorrow or maybe the next day. Let it play out.
Tip #18: Never feel uncomfortable in any trade or investment
If a stock isn’t doing what you want, just get out. I hear a lot of students and a lot of people say, “Oh, Tim. I want to get into this but it’s scary. I don’t know how much to risk. I don’t want to lose any money.”
Listen, many of my best students don’t even trade right away. They’re just learning. This is not something that you’re supposed to hate. This is something that you’re supposed to love because you have enough preparation.
And, as I mentioned before, you’re trading reliable patterns. If you’re trading something and you’re uncomfortable, just get out. You can always get out. That’s the beauty of trading.
This is not like real estate investing where you buy a house, and you’re just screwed if the market falls out beneath you. I know so many people in real estate who have lost tons of money because the market isn’t liquid. If you don’t like a house, there’s nothing you can do. With trading stocks, because I’m trading actively traded stocks, you can get in and out very quickly — often within seconds.
Tip #17: Always live to trade another day
There will be new trade opportunities around the corner. Every few days, sometimes every few weeks, and sometimes every day. But you have to be around to be able to capture it.
I never want you to go all in on any stock, and risk disaster and potentially not be there in the future for when there is a better opportunity. So part of my success is just being there. No matter where I am, no matter when I travel, I’m always prepared and looking for my plays.
That’s not to say that I’m a slave to my computer and I need to trade, but I check in every now and then and I recognize what’s paying the bills to allow me to travel all over the world. So be very patient. There are always new opportunities.
And if you take an opportunity, make sure you have enough cushion for a big loss. If you run out of money, you can’t trade next time a good opportunity rolls around. When I give students stock market tips, they’re always surprised to hear that I don’t take big risks.
Trust me, it’s not worth it.
Tip #16: My goal is to make between 20% and 50% within a few hours or days
I know that this sounds crazy to people outside my niche since big companies only go up or down 20 percent or 50 percent over several years. But that is why my penny stock niche is better.**
There is much more volatility as long as you’re prepared and you have rules. I never capture all of the move; I aim to take the meat of the move. So you’ll often see me make 5, 10, or 15 percent gains, which I’m fine with. It’s totally fine not to capture the whole move.
Tip #15: I’ve become a better trader and teacher over time
One of my best stock market tips is to give time a chance. You won’t start out as a great trader.
You learn what works best, and you optimize your strategy accordingly. It’s key to track how your strategies and various patterns perform.
The only reason that I know about buying breakouts and breakdowns so well is because I’ve examined them and I see that they work best.
We’re all different people, though, so we all don’t trade the same way. I want you to tailor your trading to your personality and focus on what you’re best at.
Some people only want to hold stocks for a few minutes. Some people want to hold stocks for a few hours or a few days. There’s no one right way to make a lot of money. It’s all about you. The stock market and trading stocks can be tailored to your preferences.
Tip #14: Use a trading journal
Keep track of your trades — the good, the bad, and perhaps most especially, the ugly. That is the key to making you a better trader.
Use a paper and pen. Use an Excel spreadsheet or use Profit.ly. Profit.ly is a website where you can post your trades and keep track of your trading record along with notes. But this is all about being very meticulous with what makes you money.
If you don’t know what’s worked for you in the past, how will you know to replicate it in the future? Worse, if you don’t recognize and record your mistakes, what will stop you from repeating them?
Tip #13: If you’re going to set goals, be sure to make them count
Several years ago, I received a letter from President Obama. I went to the White House and met with members of his administration. I was being recognized as a young entrepreneur.
Being a ‘real’ teacher was one of my goals from the get-go. There aren’t that many teachers in finance. There aren’t that many teachers online who truly care about their students and genuinely care about actually creating knowledge and transferring it to anybody.
It feels great to have accomplished one of my goals, and it was a big honor when I got recognized.
Tip #12: I act like a retired trader
People always look at me funny when they ask for my best stock market tips because this is invariably one of them: Trade like you’re retired.
Pretend like you don’t need any money. You’re set for life, and you’re just enjoying the world around you. If there isn’t a good play, or if you’re getting too emotional, take time off. Cool down, get your head on straight, and — once again — live to trade another day.
If you look at this like a nine-to-five job that requires your butt in a chair, you’ll burn out. And worse, you’ll make bad trades.
Tip #11: Never follow anyone else’s alerts — not even mine
Some of these promoters want you to follow their trade alerts to the letter. They say, “Here’s when to get in, here’s when to get out. Now go!”
Don’t follow those alerts.
If you’re one of my Trading Challenge students, or if you follow me on Profit.ly, you know when I buy, sell, and short stocks. I’m not telling you to trade what I trade. That’s for informational and educational purposes.
Find your own trades. Remember the Biblical parable about teaching a man to fish? It applies here.
I want you to be self-sufficient. I don’t want you to ever have to rely on me or anybody else.
My team and I are just training wheels in the beginning. We’ll help guide you. We’ll try to get you on the right path. We’ll give you a little push, knowing that all of my most successful students can trade completely on their own after a few years … and that’s a beautiful thing.
Tip #10: Most stocks follow the market
Typically, bull markets are typically easier for trading, while bear markets can be more challenging.
Stocks follow the market. Sure, there are exceptions. I know how to profit no matter what direction the market goes, and that’s something I teach my students.
But, generally, during bull runs, it’s a good time to take advantage of the easier profits.
Tip #9: You need to short-sell stocks
You’re going to get sick of me saying this because it’s one of my best stock market tips …
If you’re not shorting stocks, you’re leaving serious green on the table.
Short selling isn’t much different from buying. You’re just betting the stock will go in the opposite direction.
Tip #8: View this as creating a lifetime of wealth
I have students who study and trade eight to 12 hours a day. Some prefer one to two hours, and some only 30 minutes a day.
View this process as creating a lifetime of wealth. Not just a few hundred thousand dollars. Not even just a hundred thousand dollars. With stock trading and market knowledge, you have a short window before something distracts you. But don’t wait until you’re old and gray.
The sooner you have this knowledge, the sooner you can begin trading.
A lot of people tell me, “I’m busy this summer,” or, “I have a job,” or “I have school.” Whatever the reason, it all means the same thing: “I don’t want it enough to get started.” You can make a ton of excuses in life, but if you aren’t equipped with this knowledge now, as opposed to later, you miss out on every single opportunity that’s happening now.
You can start learning about this stuff in six years. That’s fine. But you’ll miss out on all the opportunities for the next six years. And that’s not fine.
I don’t care what I have going on in life. I want to teach you right away. Because I recognize the urgency, and I hope that you do, too. Even if you can only commit to studying 30 minutes a day, it can still change your life.
I have students of all ages, but the point is that they’re getting started. They want to create that lifetime of wealth, regardless of their ultimate dreams.
Tip #7: Trade the actual stock
As one of my top students, Tim G., says: “Trade the ticker.”
Companies and management like to lie. They like to hype up their stocks. Essentially, they’re cheerleaders for their own companies.
Once upon a time, I fell for it and I personally lost over $500,000. I learned the hard way. I don’t want you to have to lose $500,000 to learn this lesson.**
So heed this important rule: Stick with stocks that are liquid and trade the actual stock.
Tip #6: Avoid FOMO at all costs
FOMO (fear of missing out) is a trader’s worst nightmare …
One of my best stock market tips for traders is to forget about FOMO. If you miss out, don’t worry at all — you’ll get it next time.
FOMO can and will lead to making poor decisions. It doesn’t matter if you miss out on something!
There are so many opportunities that you don’t have to worry about missing out on a single trade. You’ll learn from every single one of them and be better prepared the next time.
You do not have to get into a stock right away, no matter what kind of pressure anyone puts on you. And I’m one of the few who who tell you not to follow alerts or picks. I don’t want you to.
Tip #5: Tools like StocksToTrade helps dramatically
This is my “Terminator” right now, where I look for the hottest stocks every day.
As I said, I look for the biggest percent gainers. And tools like StocksToTrade help dramatically.
StocksToTrade is my B.F.F. It helps me with scans, charts, levels one and two, breaking news, fundamentals, and pre-program strategies. And it’s only going to get better.
While I don’t necessarily like algorithmic trading, and it doesn’t really apply to penny stocks, we have started to use StocksToTrade to make it easier to do a lot of the heavy lifting. We use it to sort through thousands of stocks and pick out the five or 10 top ones to trade every single day.
Tip #4: I have many small losses and small gains, but they don’t move the needle on my overall account growth
I never aim to make a few cents a share on any stock trade. That’s what happens when the stock isn’t living up to my expectations, so I get out for whatever reason.
Too many people aim for these small gains, thinking, “Oh, if you make $50 here or $100 there, it adds up.” That’s nice — until you get blindsided by a trade that goes against you too fast. And it wipes out two weeks, two months, or even two years of profits. That’s called scalping.
With penny stocks, you must avoid scalping.
Some people will say, “Well, why don’t you just put in a stop loss? That way, every time you get in a trade, you put in this automatic order and it protects you.”
Well, because penny stocks are so volatile, stop losses don’t protect you. The stock can just blow right through your stop loss, and you’ll still be in it. So the key is choosing better trades, not trading as much, and not setting yourself up for a possible disaster.
Tip #3: No one trade will make you rich enough to never have to trade again
No single trade will make you so rich that you never have to trade again. However, one bad trade can wipe out your entire trading account.
Think about that for a second. You must always protect your risk, your downside, and your blindside.
You need to understand and optimize your position size so that you’re comfortable. You can’t risk losing too much.
I know too many traders who don’t think about what could happen if they’re wrong and they get wiped out. And their spouse is angry. They lose their kid’s college fund.
The stock market is scary if you have no plan.
It’s no different from driving. If you’re driving 100 miles an hour in a 35-mile-an-hour zone and you’re drunk, you’re probably going to get into a car accident.
But if you follow the 35-mile-an-hour signs and you don’t drink and drive, and you pay attention to the road signs, guess what, driving can be very fun. Especially with my Ferrari and Lamborghini.
But you have to respect the rules. When it comes to the stock market, many people don’t know the rules. That’s why I say my job is basically like I’m a glorified driving instructor. I’m teaching you the rules. I’m teaching you how to not wreck your account.
Until you have a consistent track record of wins, never trade large position sizes.
Remember, live to trade another day.
Tip #2: Your approach to trading will dictate your success
Do you have a business or a hobby? Even if you only trade a few hours per week, treat those few hours as a business — not a hobby.
I know that, for a lot of people, the stock market is a fun little hobby. It’s no different than looking at baseball cards or fantasy sports, or something where you’re not really going to make money, but it’s entertaining. You like the action.
Do not do that with stock trading. Do not do that with your investments. This can change your life if you treat it right.
Or it could just be another one of your hobbies. And that’s not cool. This can truly transform your life if you take it seriously and treat it as a business in which you take pride.
Tip #1: Look for a mentor/group of successful traders who can speed up your education
I really wish that I’d had a mentor or a coach, but I’m 100% self-taught. Now, my daily goal is to be the mentor to you that I never had.
You can learn every single thing that I learned if you go through my same kind of journey for over 20 years … or you can learn from me and my millionaire students and we can help speed things up for you.**
You can learn everything within a few years — or better yet, even a few months. I hate thinking about how confused and, frankly, just how sad I was in the beginning. It doesn’t have to be like that for you.
Stock Market Tips For Beginners
One of the best stock market tips I can give to beginner traders is to learn the most important stock market terms.
If you’re familiar with the jargon, you can keep up better with lessons and avoid missing out on key strategies.
Other than that, the here a few more stock market tips for those who have never traded before.
Learn How to Invest in the Stock Market with Little Money
You don’t need a huge account to start trading in the stock market, especially if you pursue penny stocks.
Funding an account with as few as $500 can get you started on your path to wealth.
I started with $12,000, but if I’d had less, I would have started with less. Don’t let a lack of starting capital stop you from achieving your dreams.
Just remember that, no matter your trading account size, you have to minimize your investments in individual plays. Don’t put that $500 starting balance into one stock.
Know the Importance of Gathering Value and Practical Knowledge
The more you trade, the more you’ll understand the stock market.
Similarly, the more you read and study other people’s plays, the better you’ll get to know yourself and your own trading strategy.
There’s no substitute for experience and knowledge. If you’re not willing to learn, you’re just one of those snipers I mentioned earlier. And at some point, a stock will go the wrong way and pick you off.
Master Your Skills With the Trading Challenge
As I’ve mentioned several times in this post, there’s no reason to go it alone.
I’ve shared 37 of my top stock market tips for traders, but my knowledge doesn’t end here. I have far more to share.
Join my Trading Challenge and get the chance to learn from me and my millionaire students.
The opportunity might not be around forever, so don’t let it slip out of your grasp.
The Bottom Line
Do you need to know these stock market #tips for traders? Absolutely. Memorize them. They’ll become your best friends.
It’s entirely possible to learn how to invest in the stock market, but you need to be hungry for knowledge. That’s how you get ahead.
Learn about the different types of stocks and how they work. Maintain a diverse portfolio, and you’ll do fine.
What are your best stock market tips?