To actually perform the stock trades you will need either a capable phone or wireless device (i.e. Blackberry, iPhone) or quick access to computer to check price and execute orders.

To be able to trade almost anywhere, a smart phone would be desirable. Popular stock brokerages such as E*Trade, thinkorswim, and TD Ameritrade offer applications for the Blackberry and iPhone, which allow you to access your account from directly through your phone. Obviously, these applications makes having an account with these brokerages more desirable. That being said, if you can’t or don’t want to open an account with them and your current brokerage does not offer some type of smart phone application, then you will have to live with the ability to need quick access to a computer.

Next we need some way of checking stock prices. Once again, if you don’t have a smart phone, then you will need access to a computer to quickly check current prices. Later in this article we will be looking at how to minimize your monitoring, so you do not have to constantly use the computer. On the other hand, if you have a smart phone then you are in luck. Check out a complete list of recommended mobile stock trading applications for the iPhone. Many of them also have a version for the Blackberry.

Okay, so now that we got all the equipment out of the way it is time to start planning our stock trading process. Remember that since we are not stationed at a computer, we need to make each check-up more efficient. That is where the pre-planning comes in.

If you are following a stock that looks ready to buy or sell, then you need to create your price targets: entry, stop, exit. These are specific prices for where you want to execute some action. By knowing these prices ahead of time, we are able to quickly check a price of a certain stock and take necessary action. I use simple technical analysis indicators and patterns to predict price movement.

Another way to make your stock trading more efficient is to use other types of stock market orders.

The whole idea of trading on the go is to be able to effectively make money from wherever you are. It really is a powerful feeling. As technology has evolved, no longer are limited by location-constraints to where we can trade. As long as we do our proper preparations and efficiently track our stocks’ statuses, then all traders should be able to make money in the stock market from anywhere.

Check out a full list of online discount stock brokerages that offer mobile trading apps.

Well we’re going to explore this here in just a minute. Lets look at one technique and go over some examples of how these markets behave in those settings.

Before I can talk to you too much about the first example. we need to define a few things for you. First candles… the approach that I use with Japanese candle charts, and that is what you’re looking at here, is not the standard approach. So from my perspective, I don’t focus on patterns, I focus on behavior. If we see a green candle that represents buying, that means that the closing price is higher than the open. If you see a red box that represents selling it means that the closing price is below that opening price. If you see a white line on top that’s called a shadow, I think that represents selling. If you see a white line on the bottom that represents buying. Now with that in mind, the sizes of the bodies and the shadows tell us about the degree of buying or selling.

Now let’s talk about this set-up here…

To get the rest of the tips, please check this video out.

Quick example: You buy shares of Stock X at $20. The stock goes down to $10. In order to try and limit your risk and losses, you buy the same amount of shares of Stock X at $10. Now your shares of Stock X is $15.

As you can see from the example above, you essentially bought more shares of Stock X to try and hedge your losses. While it is a common practice, many traders have various opinions on whether is a good or bad thing to do.

By obviously look at the end picture, we can come to conclusions. Yeah, if Stock X makes it way to $30, then averaging down was a great thing to do. What if it went down to $5? Because you wanted to average down, now you invested more capital into a still sinking stock. Are you going to average down again? What if Stock X goes to $3?

You can see that there are two distinct outcomes of averaging down. The positive and the negative. The debate about averaging down is when do you consider the trade a loss and get out?

When you initially bought your second round of shares at $10 you instantly added more capital into that holding. That is cash that can’t do anything. Yeah, if it goes up good, but what if it continues to go down? Will you sell, average down again, or just hold?

If you sell, now you incur the losses from both rounds of shares. If you average down again you are now taking on more risk. Think of it like a bet. You lost the first time, so you now offer double or nothing. Lost again, so now you offer triple or nothing. When will you consider enough is enough? Finally, what if you decide to hold? With your first attempt at averaging down, you put more money into the stock because you felt it would go up. When will you consider the trade a bust?

Kind of bringing this back to the debate, whether this is a good or bad idea? It really depends on your strategy? Are you investing in the company or just playing the stock game?

If you are investing in the company, then you did your research and have a good feeling of what should happen with the stock.

If you are just playing the stock game and feel the stock should go up higher sometime, then why waste time. Minimize your losses, get out, and move on to the next stock.

What do you think about averaging down?

“How MUCH MONEY DO I NEED to start trading?

While it seems like a relatively simple answer, truth be told, there is no one sum. It is all dependent on what you are looking to do and in how much time.

First off, before we can even come up with a sum, you need to do some research on the top stock brokers. Many times they all have their own minimum requirements to open an account anyways.

So that is one way to answer the question; however, how much is really a good amount to get your feet wet? Remember, if this is your first experience with trading live in the markets, you should definitely start out low and slow.

At this point, people might get into what price stocks do you want to trade, but I don’t think that matters too much as this next question should really put you in the range you want to be…

What is your time frame? In other words, how quick are you looking to turn a profit? Are you planning to just buy and hold or are you looking to throw some money around? The important factor of this is how long will your money be tied up? Obviously, if you have a position in a stock, then you can’t do anything else with that capital. Secondly, if you are looking to become more of an active trader, then you really need to trade large amount of shares to truly realize the profits.

As you can see there are a lot of “ifs” and “buts” that factor into finding the right amount to start trading in the stock markets; however, for first timers to really get a true experience on how to trade in the stock market I would recommend $1,000 – $2,000.

Make sure to check out our stock broker reviews, so you can see what different broker minimums are.

New to trading? Take the Stock Tutor’s FREE course to learn how to make your first stock trade IN 7 DAYS.

Well you can through a method called shorting a stock. Personally, I am not a huge fan of shorting, but that should not stop me from letting you benefit from it.

How to short a stock.

Although it is an easy process, it takes a little more work then simply buying stock. First, off you have to find out if your brokerage has shares to short. Unlike going long into a stock, shorting requires you to borrow shares, sell them to another buyer, and then eventually buy them back at a later time.

Obviously because you are borrowing the stock there is more risk. What happens if the stock goes up? You are going to lose money; however, unlike your regular stock buy, shorting has no roof, so technically your losses could be infinite; whereas, buying shares you risk only the capital you put in.

So to recap:

1. Ask your brokerage for shorts (since there are so many different types, it is best to find out how within your specific brokerage). Usually it is as easy as just asking somebody (be it by online chat or phone).
2. You borrow shares of the stock you want to short and sell them to another buyer. Eventually you will have to buy them back.

Example:

You feel Stock X will go down, so you decide to short it. You sell short 100 shares of Stock X at $10. Now you are credited with $1000 to your account. The stock falls to $8 dollars and you buy back the shares at a complete value of $800. Throughout that total transaction you have made $200 on Stock X going down.

Seems easy enough, but lets look at one more example:

Lets say instead of coming down to $8, Stock X actually bounced up to $15. Now you are required to buy back the stock (otherwise you risk losing even more). So now the complete value of your short shares is $1500. Subtract that from the $1000 you borrowed, and you are required to pay back another $500.

There is a high degree of risk with shorting, especially if you have no idea what you are doing. Yes, you are able to leverage the capital you really have by borrowing, but if that stock sky rockets higher, then you are forced to come up with the money to pay back your losses.

There are traders that have made millions off shorting stocks alone, but it takes discipline and dedication to execute it.

What do you think about shorting? Have any experience with it? Think you might give it a try?

Overcoming stock prejudice is is sometimes are hard thing to do, but just because somebody else is recommending something does not mean you have to follow it. To each its own, and it is up to you to see if that particular stock is right for you.

I think it is safe to say there is no shortage of stock recommendations or advice. With StockTwits, you can get something every second of the day.

That being said, anytime somebody recommends a stock or advises you to do something always run it through your own analysis. If it does not work for you, fine. You never know what the other person’s risk threshold is, how long do they plan to hold the stock, or what kind of return they are looking for.

So the next time somebody recommends a stock and you hate their methodology, don’t instantly criticize them. Run it through your own method, and if you don’t like it then move on…

For this case alone, it is important that a trader never becomes to attached to a certain stock. The following video demonstrates exactly why traders are better learning how to let go.

Watch the video – Don’t Get Married to Stocks

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