The first thing we need to determine is how do we get started? Well, I like paper trading as a good start. Paper trading is just like trading with Monopoly money. There is absolutely no risk and we get to hone our trading skills. Most all personal trading platforms require you open a regular account with a minimum of $500 to $1000.
The big 3 commercial trading platforms,(Tdameritrade,Etrade,and Scott trade) all offer paper trading as well as regular trading. Some people ask,"Dont i need to go through a broker?" Id say if you are investing large sums of money, yes you may want to but some of your money in a brokerage. The everyday person though can invest their own with the right skill set. So, whichever trading platform you choose make sure they offer paper trading as you will need to paper trade for 30 to 60 days to get your skillset down. Personally I like Trade Monster. Ok so, once you are set up in a trade platform, its time to find stocks to practice on. I like finding companies that compliment my interests because I can get ahead of the game by having knowledge about the company and products from personal use. Knowing what a company does and what its products and marketplace are like give me a more personal approach to trading and help instill confidence in picking a stock to trade. Anyone can trade with the correct skill set. Paper trading until you feel confident enough to risk your own money is a critical part in setting your skill set. Once you have picked stocks to trade what do you do next? Tomorrow I will talk about my Due Diligence process I go through in determining if the stock I have picked is really worthy of me trading it. Until then.....
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