It is always good to see young, fresh blood enter the markets; very comforting knowing that you are learning how to create wealth on your own without relying on a pay check from an employer.
This is especially true these days of COVID-19 when employers themselves do not even know if or how long they will stay in business. I can in all honesty say, the job market has never been less secure than it is now.
As new traders, you will be exposed to tons of hype, especially from sketchy outfits trying to grab your cash. You may have received a windfall from the government, but be careful… easy come, easy go. The stock market gives no guarantees. Every successful trader got burned along the way, most many times. There is probably no one who lost more than me before I got smart. lol
So, what to do? How will you know someone is hitting on you? What is a good investment? These and many other questions may float through your mind as you look for a place to safely and profitably place your funds.
Below are several great tips, I believe you owe yourself. Costs you nothing and the knowledge you glean may put you on a course of lifetime success in the market.
1. Ignore the noise. Sites such as Reddit are great for peer chatter about the hot topic of the day but following the charismatic kingpins spouting their opinions only clouds your better judgment. I have talked to many more who lost money on GameStop (GME) and AMC Entertainment than those who made a nickel on that fiasco. In fact, only one trader told me he did well, and he is a very seasoned trader. Your chances of losing are much higher if you follow the lead from chat boards than if you make your own educated decisions.
2. Your investments may be ‘one off’s’. In other words, you may have received a one time check from the Feds to help you through trying times. This does not mean you should gamble it. You should only trade with money you can actually afford to lose. Ensure you have some viable income stream, not reliant on the market to pave your way to prosperity… not yet, anyway. Lose it and weep; no one in the market cares and you will never be compensated for your loss. I even read about kids who took their student loans to put on GME, only to bite the dust. Sad, really.
3. You are on the right track with learning to invest. Now make sure you are taking the right train. Training… it is key to success. Not only a good idea but vital to long term success. Beginner’s luck, if you have it, does not make a successful future in trading. You must get training to understand markets, what and how to trade, where the pitfalls are and how to manage your own trading emotions. You won’t even know you possess elements of fear, greed and ego until you start trading; amazing really how the market pulls these attributes right out front and center.
4. Before you invest another nickel, stop and consider what I am saying. There are many lures on the market. In fact, more crooks than anywhere I have ever encountered. Penny stock promoters can make Jesse James look like Mother Teresa in comparison… just Google ‘pump and dump’. They entice you with stunning gains, steal your money and don’t even say “thanks sucker!” And, there is not a hill of beans you can do about it. If it was all a game, fine. But this is your money… and your potential future we are talking about.
As you are starting your trading career, or even as a hobby, take a little time and talk to us. No obligation at all and a brief interaction could open up a world unimaginable, especially as you are starting at a relatively young age. I can tell you I started later in life and reached milestones beyond my wildest dreams as a trader; just envision what it can do for you!
To be clear, trading is highly risky and you can lose all your money. It may appear simple and easy but it’s not. For this reason, get all the help you can.
How to reach us? Contact us here…. we’d love to hear from you!
– Hugh Grossman, Head Trader, DaytradeSPY