It’s not just $100; it’s more like “How to make $100 x 2, $100 x 3, $100 x 4, … .” But let’s not get too far ahead. Making money in the stock market is a marathon, not a sprint. Your goal should be consistent profits. If you are looking for a quick $100 bucks, then you’ll be disappointed. Persistence and patience is the key to learning how to trade successfully for the long run.
Everyday the stock market provides untapped opportunities to make money; more than you can imagine by buying or selling stocks. For that an investor or trader has to make several decisions in the fast moving stock market to make profit and avert risk. Profit is the sun that everyone in this business wants to revolve around.
It’s challenging to be always profitable in the stock market. Yet, there are ways to make money in the market. It’s not easy, but it’s doable. It requires a lot of hard work, just like any other financial endeavor. It will require patience and dedication.
1. Create Your Trading Plan
In every trade lies great possibility. Build a strong foundation – create your personalized trading plan.
Beginners & Intermediate Traders
Trade with paper account for weeks/months until trade entries and exits get ingrained and are executed with minimal emotion.
Treat your paper account as real account otherwise you’ll be unable to replicate the results.
Keep a daily trade journal. Document each trade and keep a copy of charts with entry and exit noted on it.
Go back and check last 3 to 6 months of trades and see what’s working/not working for your and learn from it.
If you need to reset, start paper trading again. Otherwise continue trading your current strategy with our stock picks alert system.
Check your results and refine trading strategy to reach your goals.
2. Trade Entry – When to Buy the Stock
Wait for a pullback after receiving the alert to enter the trade (low risk entry).
If there is no pullback and overall market is strong in the direction of the stock pick, enter the trade (high risk trade).
Do not chase the trade. Be patient, next opportunity to trade is right around the corner.
3. Trade Exit – When to Sell the Stock
Place limit order to exit the position in the profit target range. If the price action warrants an early exit, just do it.
Give some room for trade to work. Place the stop loss order within the range specified in the alert.
Manage your position. Price action is dynamic; what happened in the past is history, so adjust your exits accordingly.
4. Build Rules and Discipline
Don’t over trade or revenge trade i.e. try to make up for the losses in the day. You will probably lose more.
Be consistent with entries and exits. Make it a habit to take the trade when it meets your criteria and manage it like a hawk.
Once you’ve reached your daily goal, stop trading. Otherwise you will lose it all, and, some more.
How to reach $X/day goal?
First, trade small size like 200 shares and look for $0.25 profit resulting in $50/trade. Repeat the process with another trade. This will gross $100/day. Be flexible with the profit target but try to do this with 2 trades with 200 shares each.
Once you’ve mastered this after 100’s of trades, you can consider increasing trading size to 400, 500, etc. shares. The method stays the same. You are now taking advantage of the multiplying factor.
400 * $0.25 = $100/trade. Repeat this on second and third trade to get to $300/day.
Increase trade size (no. of shares) only after you’ve consistently meet your goal. If things are not working out, reduce the trade size.