Many people falsely believe that a good broker is required for advanced stock trading. This notion is not correct, many day traders use what they've learned combined with independent research to make decisions. Stock brokers can slow a lot of people down, and no-one likes high fees.

Things You Will Need

pen and paper.

Step 1

Learn how to identify patterns. In the stock market, it's important to know how to identify possible patterns. For example, some stocks will have months of consistent growth, then tumble without a reason or alarm. Many people can predict these collapses based on analysis of the history and situations leading up to the crashes.

Step 2

Open a practice account. In order for you to get the experience necessary to be a successful investor on your own, you must have practice. You can track your own performance compared to other people, as well as seeing how much profit you would have made. You can learn a lot cheaper this way.

Step 3

Learn bankroll management. Most stock investors fail to succeed because they lack proper bankroll management. You should never risk more than 1/5 of your entire bankroll on any one investment, no matter how attractive the buy looks. Always slow down and invest smaller amounts if you lose a large amount of money.

Step 4

Get stock analysis software. Stock analysis software will advise you on the best buying and selling point. Some investors would rather use the software than do the research themselves. Either way, it's important to at least get a recommendation from the software before going with your research.

Step 5

Pay attention to the headlines. In the stock market, every news headline has an effect on a stock. If you are good at identifying patterns, you can capitalize on this and have an edge on the competition. Pay attention to news outside the U.S. and they're effect on the stock market. Study which stocks they affect and profit the next time around.

Step 6

Hedge against high risk investments. High risk investments can make your bankroll disappear, which is why it's good to invest in commodities as a hedge. Commodities is just one example of a less risky investment that goes up when the dollar goes down. This way you minimize your losses.


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