This article discusses the best way to get started trading stocks online and how to setup your online stock trading account.
Instead, we focus on options trading.
If you're new to options trading and would like to get started, then this blog post will help you get started.
Remember that it's important to not get overwhelmed.
I've had countless students express interest in learning how to trade options, but they fail to ever get started.
They always have an excuse.
Yet time continues to pass...and they continue to complain about how they're not making money.
Don't be like them.
Online Stock Trading Key Points
Choose the Best Trading Strategy
Selling option premium is the best way to make extra money and increase your income.
It's important to have realistic expectation when trading.
By trading options, you should be able to earn ~40% every year.
You won't be able to achieve those returns with real estate or any other investment.
Some of the most successful hedge fund managers barely earn 10% a year, and managers like Bill Ackman and David Einhorn have had years of losses.
The reason I bring this up is because... if you're not satisfied with earning ~40% a year, then you likely won't be wealthy because you'll fall for "get rich quick schemes" where you'll lose your money.
Patience and discipline are extremely important. Don't make financial mistakes that will cost you money in the future.
Sell option premium. You can earn ~30% - 70% a year, which would easily make you a more successful investor than virtually anyone else.
Sell Naked Options
Ask your broker to allow you to sell naked options in your online trading account.
A lot of people think that selling naked options is dangerous.
Those people are not successful traders.
There are 5 main reasons why you should choose to sell naked options:
1) Selling naked options maximizes the amount of premium you receive
2) It's much easier to roll / manage a naked position than a credit spread
3) Selling naked options inherently protects you against trading too many contracts (the biggest reason options traders fail is that they trade too many contracts)
4) If you need to increase buying power or reduce risk, you can easily buy options and turn your naked position into a credit spread. Since you can do this only when needed (likely for ~5% of your total trades), there is no need to trade spreads by default
5) You'll pay lower commissions (~50% less) when trading naked options relative to spreads
Minimum Account Size & Other Online Stock Trading Tips
Instantly Be a Successful & Profitable Trader
Copy My Trades with Real-Time Trade Alerts
The stock market doesn't reward your knowledge, it rewards good decisions. Oftentimes the articles you read negatively impact your decisions.
What to Expect When Selling Options
With online stock trading, your strategy and discipline will determine your success.
If you try to trade penny stocks, for ex, use technical analysis or day trade, you're going to lose all your money.
The best strategy is to sell option premium and have realistic expectations.
Trading can be stressful.
Despite winning ~90%+ of trades, there will be times when things go against you.
2018 has been a difficult year.
Prior to February 2018, I made money ~20 straight months by selling options.
Yet, in 2018, I've had 3-4 months where I've lost money.
My point is that it's important to see the big picture.
Selling option premium is the best way to make money.
But even the best traders experience volatility.
On average, you can earn ~50% a year by selling premium.
These returns from online stock trading are better than virtually any other investment.
Stay the course and think long-term.
Think long-term. Slow & steady wins the race. If you try to hit home runs when investing, you'll strike out.
Online Stock Trading Conclusion
The most important action to take is to get started.
Open a brokerage account.
Request the ability to sell naked options.
Read blog posts on BestStockStrategy.com because it's the best stock trading site for beginners and will teach you how to be a profitable trader.
Sign up for the trade alerts or take the education course.
Learn a skill and get started!
Learning how to trade online is an incredibly valuable skill.