Many beginner traders use a very risky strategy that exposes them to outcomes that they are not even aware of, yet can be very dangerous. I realize this may all sound a bit overly dramatic, but all I ask is you hear me out. I've been running claytrader.com and my YouTube channel since 2013 and I see this strategy being used over and over again. The problem with the strategy is the motivation behind it is most times noble and coming from a good place of "I'm trying to learn..." or "I'm trying to improve...". This meaningful intent is why the strategy is very risky. The strategy blinds you to the fact that you are truly putting yourself and understanding of various topics in very dangerous situations. In order to best see how this strategy works and why it is risky, we need to put ourselves in other people's shoes and take a look at the world through their eyes. By doing this, you are going to quickly see just how lazy this strategy is and how there are massive exposures to risk. Just remember, the world does not revolve around you and when you go through life operating under the assumption it does, that's not going to take you to places you want to go. Let me show you what I mean and how this strategy works.
If you want to maximize your stock investing results, you need to focus on how to start smart! Stock investing for beginners can seem overwhelming and confusing; however, when the process is broken down into a few small decisions, it's actually very straight forward. If you want to build wealth with your personal finances and gain financial freedom, then you need to find a process to help you in that goal. Stock investing is a great way to build wealth, but you also want to be sure to implement the process as wisely as possible. Part of implementing the process is how you start and it's crazy how by making one small decision (that is only a click on your mouse), you can add more than $1,000 into your pocket. I realize this sounds dramatic, but part of success in investing is allowing time to work for you. In order to do this, it's all about starting now! If you are a beginner and want to get started smart with stock investing, let me show you how!
Being a day trader can be filled with a ton of emotions. In fact, so many emotions that some of them you never realized existed until you started day trading online! Given we are all human beings, there is nothing wrong with feeling the emotions while trading; however, if you begin to act upon them, that's where the problem lies. Our core job as day traders (or swing traders) is to learn how to manage the emotions and control them to the best of our ability so we can make consistent money online. One of the best methods I've found to control the emotions is to create emotions that benefit us and are totally easy to deal with. One of the best kind of emotions we can create for ourselves is a certain kind of stress. I realize this may sound counterproductive, but like me, I'm very confident you will absolutely love this kind of stress. How do you create emotions? How do you create this kind of stress? It's all about your trading strategy and how you manage the trade you are taking part in. Instead of trying to explain here "in theory", let me show you some of my personal day trading results that better illustrate exactly what I'm referring to.
When you are a beginner and just getting started with investing, it's perfectly normal to not have a whole lot of money. Maybe you just got done paying off lots of debt? Maybe you are younger and haven't have much time to make a lot of money? Whatever the reason may be, you just don't currently have a whole lot of money to use to invest into the stock market. First off, that's great you are looking to grow your wealth by investing, welcome aboard! Second off, it's not a big deal at all if you don't have much money at the start. While it may sound too good to be true or impossible, it is totally doable to be able to buy a $100 priced stock if you only have $10 (or less!). How is this possible? The key comes down to selecting the right online broker to handle your account. When you have an online broker that offers certain capabilities, as I will discuss in this video, you will be able to get started investing into the stock market with very modest amounts of money. Let me show you how!
It is our job as traders to find as many variables as possible to leverage in our favor. I'm not suggesting we do anything illegal, but what I am suggesting is the best way to make a trade NOT a gamble is to put the odds in your favor. At the core, trading is a game of probabilities and odds so our focus needs to be on educating ourselves as much as possible, including within the realm of science and psychology. In this particular case, by understanding a very basic concept in psychology, you can better understand a type of trading that is easier. Now just because the trading style/strategy may be easier does not make it guaranteed; however, it again goes back to the point of it allowing you to leverage probabilities in your favor. I don't want to be a gambler. I don't want to view the stock market as my casino. I want to view this all as a methodical plan of attack where I can find myself "most likely" outcomes. The topic I talk about in this video perfectly illustrates why you need to understand and leverage this human emotion within your personal trading.
How are you doing in your understanding of the markets and online day trading as a beginner? When I was just getting started as a day trader and learning about the markets and strategies, it was hard to know whether or not I was truly making progress or just being corrupted by false confidence and hope. When you are a beginner day trader and "don't know what you don't know", it can be very easy to begin to form bad habits or use trading strategies that seem profitable; however, over time they will ultimately destroy your trading account. A great way to measure your progress of understanding day trading is through this very quick and simple quiz I have for you. No worries! If you are having flashbacks to school and pop quizzes, this won't be anything like that. It will take up very little of your time, but if you take it serious and are honest with yourself, it will show you an accurate assessment of where you stand in regards to your true understanding of how to day trade with good habits.
Student loan debt has really gotten out of control across the USA. You are constantly seeing the topic come up over and over again within the financial media. In the vast majority of the cases, the student loan is being referred to as a crisis due to the fact it is dragging down the personal finances of many people, particularly younger adults. I do fully agree that there is a student loan debt crisis that exists; however, that's simply acknowledging and complaining about the problem. I've always been taught to never complain about the problem unless you have some kind of solution. When it comes to how the student loan debt issues can be solved, my solution is one word: greed. Yes, you read that right, greed! While this may sound like I've gone crazy, let me show you the power of greed and how it could quickly fix the student loan debt problems. Sure, it may cause some frustrations at first for people; however, I'd be willing to be a large chunk of money that years later, those very same frustrated people will be willing to "thank the greedy". Greed is a force that can be used for good, and that includes fixing the student loan problems. Let me show you how!
Financial problems are all too common when it comes to personal finances and attempting to take control of your live and freedom. You are not alone with the problem and in all actuality, I respect that you have a problem. How so? Well, by saying you have a financial problem shows that you are being self aware of your financial situation and not deceiving yourself. I commend that! The only way to fix a problem is to first identify it as a problem in the first place. That brings us to why you are here, you are wondering if day trading is the answer to your problem. You want to know if learning how to day trade online and make money is a suitable solution to your financial struggles. Once again, I deeply respect you as you ask this question. It shows that not only have you admitted there is a problem, but also that you are seeking a solution to it. In this video I want to discuss with you the considerations you'll need to make and think over as you determine whether or not learning the skill of day trading is the right solution. With over 15 years of experience and doing many dumb things, I can speak with a relatively high degree of expertise on this issue, so let's have a discussion and see if day trading would be the proper next step for your financial situation and goals.
If I was back to being a beginner day trader and just getting started in the markets with a smaller trading account, I know exactly what method and strategy I would use! When you are starting your trading journey, it is completely normal to have a smaller account that you will need to grow over time. There is no shame in this at all, and in all actuality, I would argue it is a good place to start. All traders have bumps along the way, especially at the beginning, so it's better to experience those bumps with a smaller account than a huge one! The one potential problem and annoyance is the dumb Pattern Day Trader Rule ("PDT Rule"). This is a government regulation that says you are not allowed to day trade stocks as much as you want if you have less than $25,000. It's truly a ridiculous rule, but it is what it is. The good news is, if you take the proper steps (as I will show you in this video), you can give yourself a whole lot of flexibility within your trading strategy. While I can't say you are totally avoiding the PDT Rule, this strategy does allow you the opportunity to side step it a bit. When you do it the right way, you can give yourself multiple "day trades" each and every day. Let me show you one step at a time how you can accomplish this. I'm confident that you'll quickly see why this is the day trading strategy I would use with a smaller account if I had to rewind time and go back to the start!
There is no shame in working a full time job. In fact, most beginner traders get started in the stock market while still having a full time job. I would argue this is the smartest strategy to use so that you have that extra source of financial income flowing into your monthly budget. There is no need to create mental pressures on yourself because you need to make winning trades and consistently make money to pay your bills. As a new trader who is just starting out, that is way too much pressure to put on yourself! With all that being said, the reality of the matter is trading stocks while having a full time job can be very tricky at times. You never know when you might need to step away from your computer or phone. You never know when a fellow worker stops by to talk about an issue that you had no idea about. There can be some very risky situations created when trying to make money in the stock market, with a job. The good news is, there are some cool tricks you can use within your online trading broker's platform that make trading stocks with a full job job safer. This way, you can have full confidence in your trade plans because you know you are safely putting yourself in a position to make money. There is nothing magical going on here however. You still need to know how to trade and have a valid strategy, but to those that do, this little trick will ensure your strategy stays safe within your context of having a full time job. Let me show you what I mean...