Just read things and look up anything you don't understand on investopedia.
What kind of background do you have that makes you think you have the right mindset for day trading? Do you just have money that's burning a hole in your pocket? Day trading is much different than normal investing.
I have no background for this sort of thing; I'm blue collar to the bone. I do have disposable income that might be put to better use than "burning a hole in my pocket", so to speak.
Then focus on teaching yourself to read financial statements (income statement, balance sheet, statement of cash flow) and learn to do comparative analysis to other similar types of companies. Day trading is like gaming the market and takes a lot of time trying to identify very short-term trends that you can exploit by timing the trades correctly. This is not easily achieved. The more reliable method is to invest in the market over the long-term by identifying financially strong companies that are undervalued and have a competitive advantage when compared to their competitors.
The institutional investors tend to look for returns over shorter time periods, like months and quarters, because they have to show that their investors that they made a profit during a trading period. Your advantage as a retail investor is that you can have a longer investment horizon than those people. The professional wall streeters and the AI trading-boxes win the short-term game.
Thanks. Yes, I was planning on most of my portfolio to be based on those "safe" long term investments, occasionally pumping money into something that I personally think might make a good short-term turnaround (if not, c'est la vie and wait until it's not a loss). Serious day-trading is not in my cards.
Thanks for your time Worf.
I think selling put options is a good beginner strategy. It's also a great source of weekly income. Lots of JewTube videos about it. Watch as many people as you can tolerate explain it.
Trading the wheel is another good topic to learn about.
I agree with @webofslime about picking a large cap like T or GE as a first stock to go long on, although many argue VZ is a better play than T (I don't own either). I also personally like KSS (midcap) and GM. KSS will rebound nicely from this COVID crap and is picking up market share from JCP. GM is a better EV play than a lot of people give it credit for. Both will pop when they reinstate their dividend.
Of course that's just the opinion of an idiot on the internet. Do your own due diligence.
I concur with this... VZ is a good suggestion.
Put options should be a top priority to learn, especially right in this moment, because I suspect there will be some push and pull before "Open Season" in April.
Definitely want to get in on some undervalued stocks before open season starts, which is being telegraphed as April.
It's very simple to buy low and sell high, even a moron could do it!
Stock news is annoying because it is fabricated reasons behind the stock moving.
Being redpilled on staged media narratives helps navigate that nonsense.
For example: "Stocks Up on Vaccine News" really means "Stocks are up, and we also need you to want this vaccine."
Alternatively, they will insert their fear mongering on down days, "Stocks down on coronavirus cases rising." Which really means "the market corrected naturally because it was up for three days straight and is slightly down. Be afraid of Coronavirus."
Once you understand how to filter out that noise, and see what they really mean, the news becomes a lot easier to navigate.
Don't start out playing with options, but do start out looking at the option chains on any stock you like. You may not understand what you are seeing the first time, or the second time, but it will eventually start to click. Papertrade in thinkorswim; meaning use fake money.
This is what a Paper Trading account looks like.
https://pic8.co/i/c7c4db7e-984c-410b-a15e-08bd198d3965/
If you want to try the stuff Reddit's WallStreetBets is doing... paper trading is the place to do it. You will actually learn a lot by doing retarded plays in paper trading.
The best place to start is to just do it in paper trading and start losing fake money so you know where you are going wrong.
TV, movies... the news. Everybody is completely misinforming you in how it works. Dealing with court and law enforcement are the same way. There is a bit of a shock that occurs when you step into these processes, doing what you think you're supposed to do and having it be totally wrong.
Go get it wrong for a bit in a context where you don't have to worry. Then, start small, with penny stocks. They're a gamble, but you need the lessons trading penny stocks will teach you.
The very first stock you buy should be a long term hold. $GE was looking okay, last I checked, if you can find a dip, though I usually recommend people start with $T (AT&T). It should be a dividend stock, not a growth stock. That way, even if you whiff it on your pick, it will still pay you while you're holding it.
Growth stocks are good for companies you think will actually grow. Don't buy growth stocks for long term holds on companies that have already grown. They do not provide a dividend. Trading apps, like WeBull, have features where you can earn on shares you are holding... but that's down the road.
If you look at the DD sticky, it should give you an idea of how to even just look at a stock.
Good luck.
what is your goal? swing trade? Invest long term? Do you have cash or do you need cash? Are you always behind the computer for work? Stonks and investing is like everything in life. Like sex and religion. Take what works for you and run with it. Don't commit your life trying to live by someone else's standards... Take what works and do good things.
I have a cash and a solid career. I am not a gambling man and this is not out of desperation; it'll be a lark with a portion of my disposable income. If anything comes of it, awesome.
I have company shares already that are for long term, but wouldn't mind diversifying the portfolio and dabbling in other types of trading.
No, not constantly behind a PC and my schedule constantly shifts, but can check one every few hours.
The problem I'm facing right now is deciphering all the cryptic terminology.
One clarification. Buying different types of stocks doesn't diversify your investing portfolio. You got companies that you have control in that earn you money. You have things that you own that earn you money (ie rental properties and boats or cars). Then you got Stonks that earn you money. aka Paper assets. IF you have a 401k, Roth IRA and now have a direct investing account. Your investments are still 100% in Paper. Just some food for thought.
Take a look at stock twits account and maybe try getting your hands dirty asking questions and seeing what the chatter from the retail investor is. Lots of good free info. You can then learn terms specific to the type of trade you are doing. It seems like you are trying to learn a new language by looking at the dictionary.
I like to follow Cam the Man. He has a 1k account that he brought up into the millions.
I like mrinvestorpro because he saved me a lot of money by calling the Covid crash last year. Which put me in a strong cash position to buy up at the bottom.
I like Ultra_Calls I watched him make 7 figures on a trade.
I like mrs_blackinkeconomics because its all technicals and her husband is an economics professor and wrote this book. https://blackinkeconomics.com/book/
I can't tell you what to do. Just what I like to do.
It seems like you are trying to learn a new language by looking at the dictionary.
Accurate and well put. I'm familliar with some of those twitter personalities. Might start following and listening to what they have to say. No rush.
Thanks for your responses.
Buy the trough, sell the peak. Good luck figuring out which is which.
Also, learn what funnels are.
Then realize everything is a funnel to one degree or another.
No advice, sorry.
Here's what I think:
Day trading is for suckers.
Buy low, sell high.
There is no rhyme or reason to the market anymore. Buy ETF's, preferably ones that pay dividends, and just be patient.
Beware of ETF stripping.
Consider getting the list of tickers from the ETF and getting them one by one.
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