Step 1: Open an account
Open an account
If you’re just getting started with investing (or even if you’re a grizzled veteran), my recommendation for a trading account is Robinhood. Zero commissions is a game changer. You can trade in and out of one share to get up and running.
Step 2: Lose money
Lose money on a trade
Seriously, just do it. The biggest impediment you’ll have to becoming a competent trader is an irrational fear of losing money. So just get it over with. Buy a share of something on Robinhood, then sell it the next day. Keep doing that until you lose money on a trade. (It won’t take long.) Once you understand that losses happen, you’re ready for the next step.
My top recommendations for losing trades are… DON’T, NEED, THE, or HEADACHE.
Step 3: Get a coach
Get a coach
Investing is a behavioral science as much as anything else. To trade well, you need to develop the right habits, perspectives, and methods of reasoning. You need to practice effectively so that you’re ready to perform when the trade appears that will make your year. So many people spend immense time and money finding the right stocks. I think you need to find the right coach.
Here are three coaches who are absolutely worth your time and money. You’ll get trade ideas from them, but more than that, you should watch and learn how they think about investing.
Step 3: (choices)
Run by my friend Ivan, Market Wisdom gives you access to swing trade ideas, a model portfolio, and Ivan’s incredible brain.
JC at All Star Charts has a great newsletter, trade ideas, a monthly conference call, and more. He’s one of the best in the biz.
Chris over at Kimble Charting Solutions knows his stuff and reads the “chart art” better than anyone.