Investing in the stock market is a great way to make your money work for you. I’ve spent a long time working for my money, so now I’d like to see what it can do for me. With that thought in mind, I made the big move to invest $20 in the stock market using Robinhood. After one week in the market and having lost only $0.87, I feel that I’m the best person to take advice from and can be trusted with your precious dollars.
Here are my tips to becoming a stock-trading mogul:
#1: Buy At Peak Prices
When looking to buy a share, take a look at the price per share trend over the last year. Is the company on a steady climb to a record high? Buy now! That means the company is doing well and the sky is the limit. There is no risk of the price plummeting, as the company is doing better than ever.
#2: Sell Quickly If The Price Dips
If my advice turns out to be totally wrong for my first tip, start to panic and sell immediately. You don’t need that kind of stress in your life. Trust your gut and if it’s feeling even mildly upset, get rid of that stock. You may not be making any money, but at least you’re only losing $0.50. If you do this once a day, you’ll only be down $182.50 by the end of the year. Knee-jerk reactions are a good thing when it comes to stock trading. It just means you’re being very careful. Pay close attention to media outlets reporting on companies you’re invested in. If there’s even an inkling of bad news, SELL!
#3: Become A Day Trader
Looking for a hands-off, stress-free way to make money? Forget your 9-5 and become a day trader. All you have to do is wake up, throw a few thousand dollars into the stock market in the morning, and then go about your day. Go grab a coffee at Starbucks, go to yoga class, watch some TV, and then log back in to Robinhood. At this point, you should see that a large profit has presented itself to you. Sell the shares you bought in the morning for thousands more than you paid for them, then repeat the process the next day.
SIDE NOTE: If your barista gets your morning coffee order wrong and you’re invested in Starbucks, make sure to sell the stock immediately. The company is clearly going downhill.
#4: Less Is More When It Comes To Information
Reading financial reports and researching companies is overrated. When it comes to investing in the stock market, take a quick peek at the company description. Like what you see? Just go for it. I like to look for stocks that have fun names. Those are the real moneymakers.
#5: Never Diversify Your Portfolio
It’s tough to focus on more than one thing at once. If your stock portfolio becomes too diversified, you’ll never be able to keep track of all of them. Instead, put all your eggs in one basket and throw all of your money at one company. The same rule from tip #4 applies: Don’t overthink it and just pick one. No matter what happens, it can’t be that bad. You’ll be able to pay extra special attention to this one company, which makes it easy to sell if you see the price drop slightly.
#6: Invest In Small Competitors Of Monopolized Industries
Amazon is an absolute powerhouse, but it will cost you quite a bit of money to buy a single share of their company. Instead, find a smaller competitor that does the exact same thing. This way, you’ll still be able to invest in a company that provides similar services, but you’ll be able to buy hundreds of shares instead of just one from Amazon. When this small competitor rises up and takes them down, you’ll be rich!
Following these six simple tricks will help you become a stock-trading mogul in a matter of weeks. At worst, you’ll lose approximately $0.87. But if you commit to these strategies, you may find yourself adding many zeroes to the end of your account balance.