3 Tips for Trading Stocks Without Spending a Dime
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I hear this all the time, “Tim, I want to learn stock trading, but I don’t have the money. What can I do?” And what people who ask that forget is that I was once exactly where they are. I had no mentor and I had no special training program to help me discover the business models that have made me successful.
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I worked hard and did it on a budget. Here are three ways to do the same:
1. Take advantage of free resources.
There are so many training videos, blogs, and other resources to help you get started that you have absolutely no excuse not to get started today. I have over 100 hours of footage on my Youtube channel HERE – all free to you at absolutely zero cost.
Can you imagine where you would be as a trader if you took the time to browse through all these videos? Suppose you take two hours a day to study my stock market tips. You would have completed the videos in less than two months, and I guarantee you would be in a better position than people who buy expensive courses and then never act on the information they have purchased.
I wish I could show you all the hours I spent in my early days, sitting at my computer and studying stock charts until my eyes glazed over. I also started from box one – and I didn’t have access to as many resources as you. Fifteen years ago, the internet was a whole different place. If I could succeed with my limited access, you can do much better now, with all the different resources available today.
2. Set up a practice account.
With all the different free resources available, I want you to go crazy. Read every blog post or book you can get your hands on and watch every video. Learn the fundamentals of stock trading, what it means to monitor price action and how to execute trades.
But I also want to warn you that there is a time when you have to translate all that education you’ve invested into action. Reading about trading is not enough. You’re not a trader until you, well. . . Trade.
If you don’t have the money to open your first brokerage account yet, at least start practicing. Find a website online that allows you to create a practice account and run some test operations. Practice the strategies I teach, but do it in a low risk way. Although practice wallets are not perfect mirrors of real-world accounts, they will at least get you used to the feeling of searching and executing a trade.
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3. Start saving for your brokerage account
As you research and execute trades in your practice account, take a look at the brokers I use because I want you to think ahead. One of the big advantages of trading penny stocks is that you can start with a small account. Let’s say you only have $2,000 to invest. With that money, you could buy about 16 shares of Apple at $120 a share, or you could buy 2,000 shares of a stock at $1 a share.
And since you make money when you enter and/or exit a stock based on the number of shares you own, which of these options do you think will help grow your account the fastest?
Penny stocks are great for beginners, but I want to warn you about one thing: don’t use your last $2,000 to open your brokerage account. Install it with money you can afford to lose. If you don’t have a few hundred dollars or a few thousand dollars to consider that way, cut back on your expenses or earn some extra change until you do.
When you’re ready to start actively trading, find a mentor who will help you make the most of the money you may have saved. Although it’s not always free, the amount you’ll save by not making stupid mistakes and avoiding unnecessary losses will help get you started on the right foot towards long-term profitability.
If you started investing on a shoestring budget, what other tips would you add to this list? Leave a comment below with your suggestions.
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