By Steve Gomez

Hey there future traders! Excited about stock trading and can’t wait to dive in? Well, as someone with 25 years worth of experience in the trading game, I have got some valuable insights that might enhance your trading journey. Let’s break down these three key factors you should consider before taking the leap into the thrilling world of stock trading.

1. Understand your Trading Time Frame

Choosing the appropriate time frame for trading is an essential first step when entering the stock market. It all depends on your personal situation, specifically whether or not you are juggling trading with a second job.

If that’s the case, you might want to reconsider becoming a day trader. Day trading requires you to set your sole focus on the stock market, akin to a pilot navigating a plane during bad weather. Dividing your attention between your day job and trading can lead to missed opportunities and potential financial missteps.

However, if you’ve got a second job but still want to explore and enjoy the exciting world of stock trading, consider swing trading. This method involves buying and selling stocks over a span of a few days or weeks, allowing you to effectively manage your time. This way, you can keep both your job and trade with less direct attention required, making stock trading a thrilling side hustle!

2. Practice Makes Perfect – or at least, Better!

Just like learning to play a musical instrument or mastering a new language, trading needs practise. And trust me, as a beginner, mistakes are definitely on the horizon, particularly within your first five or six months. Consider these errors as learning opportunities – an essential part of the growth process.

With this in mind, it’s a wise idea to make your early mistakes on a smaller scale, with cheaper stocks. You can learn from these mistakes and improve over time without incurring significant losses.

3. Trading is a Business, Not a Casino!

Lastly, if there’s one piece of advice that I can give from my years of experience, it’s that you should treat stock trading like a business, not a game of chance. This is not a casino where you throw your dice, hoping for a lucky break.

Running a business requires strategy, planning, understanding the market, and careful risk management – these are the same principles you should apply in your trading journey. Success or failure isn’t decided by mere chance – your decisions, strategies and understanding of the market are the key determinants.

In summary, stock trading offers an exceptional opportunity for both personal and financial growth. However, understanding your trading time frame, practicing diligently, and treating trading as a serious business are three fundamentals you must consider. By following these steps, not only will you become a more informed trader, but you’ll also stand a better chance at succeeding in the stock market. Good luck and happy trading!