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How to trade stocks and make money fast

By Edited May 25, 2014 0 0

First off let me tell you I have been actively trading stocks for the last ten years. I am the admin of my own forum (Team Veritas) on Investors hub with close to a hundred followers. Not a lot but if I were to spend more time there I am sure I would have more. Trading stocks can make you a lot of money, or lose a lot of money depending on your level of skill.
Seems pretty easy right? Buy low Sell High. Take profit.
It is actually harder then it looks and most people will lose a lot of money.

Everyone at some point has time has either bought stock or been given stock as a present. I am not talking about investing, I'm talking about trading. It's fun, exciting and addicting.

The number one question people ask is "Where do I find good leads on hot stocks?". A lot of businesses make money off getting new traders to buy their "hot stock pix of the week". Most are all P&D (pump and dumps) and by the time you go to buy the stock it's already spiked up 100-300%. You get the sudden panic sensation and buy (raw emotion of greed). It could take minutes to hours sometimes days and the stock starts falling faster then a fat kid off a diving board. That's when you get another panic sensation, this time you sell (raw emotion of fear). What just happened there? You traded with emotion and lost money.

This is not how you want to trade.

First step is to create an account on investors hub. The forums are a place to get leads on hot and upcoming stocks, but be careful and do your own DD (Due Dilligence) aka research on the stock. Many people will tell you it is the next Microsoft but be careful and always take profits.

There are many ways to tell which way a stock is ready to move so find a method that works best for you. I like to use a combination of charts, volume, news and momentum to tell which way a stock is going to move next. Many of the methods that I have picked up I have learned the hard way. Here are a few tips I am going to share with you.

Get Access to a level 2. This will show you all the trades happening in real time. Green are buys and reds are sells. There are 2 columns. The Buy, and The Ask with MM's (Market Makers) on each side. There may be 2 MM's on the Ask of microsoft at $14 a share but only 4 MM's on the bid at 13.55. This means the Bid is "stacked" and the ask is "thin". When the bids stacked this means that there is buying pressure and when the ask is "thin" it generally means it is getting ready to move up because there is more buying pressure then selling pressure.

You will commonly hear people refer to Bulls and Bears when discussing stocks. A Bull means buy and and Bear means Sell. A Bull Market is when the market is up and people are buying. A Bear Market is when the market is down because people are selling. The common battle between the bulls vs the bears is apparent when reading charts.
There are many styles of charts you can read, some prefer lines, some prefer candlesticks, after awhile it's all the same but I tend to like candlesticks over lines because that's with what I started with. There are a ton of information on the types of candlestick patterns and what they represent but there are only a few that I think are extremely important right off the bat. Google a Doji star pattern, it should look like a cross. This is a sign of a reversal. If it follows multiple red days along with a spike of volume this is a good sign the stock is ready to go up. However if it follows multiple green days then the same can be said and it will most likely fall. Doji stars represent Indecision between the bulls vs the bears in the market.


Things You Will Need

Brokerage account such as E*Trade, Ameritrade, Scottrade etc. Money to trade with aka Capital. An IHUB account (http://www.investorshub.com) Chart reading tools. Access to a Level 2.
Sign up for a brokerage account, create an account on I-Hub, participate on the forums, do your dd on a stock, watch the Level 2 and read the charts for the right entry point and take profits. This should be a good start for you but I also recommend reading some beginners books to get you going. Another good strategy is trading bio-pharmaceutical stocks using an FDA Calendar, learn how to do this here:
http://www.infobarrel.com/Trading_FDA_Stocks_and_Getting_Rich.

Tips & Warnings

Stay away from newsletters and pumping email newsletters, this is a good way to lose money fast, not always but you better sell quick if you do make a profit.
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