People ask me these questions all the time: “How do I start?”, “Where do I start?”, “When should I start?”… Especially after ‘The Wolf of Wall Street’ hit the theatres, I was inundated with these inquiries. Here is my short answer for all the young wolves out there…
1. Get an Education first
The most important step to becoming a successful trader, that almost all amateurs skip, is getting an education. No I am not talking about college, because anything you learn in college about stocks you can shove down toilet. I am talking about trading education; knowing how to read the markets, trading strategies, risk management, and understanding the different vehicles at your disposal. So where do you get that from? You could choose the hard route of reading dozens of books on trading till you are there, but the number one tool to become a successful trader is having a coach. I will give you three options for which I can vouch: 1. Myself. Send me an email, and I will get you started on your trading journey. I have had incredible success at a young age and already coached a number of students. 2. TradeSmart University, the place where most of my initial trading education came from, or 3. Real Life Trading, which is run by my #1 Mentor in the trading world.
2. Get a Broker
In order to execute a trade you need a broker. Since we are in the 21st century, your broker is a software and no longer a real life person! You will be able to virtually trade through them as well. Here are my suggestions.
For starters: Optionshouse (Cheapest commissions, nice software)
For advanced traders: Interactive brokers (requires higher starting deposit, good rates, professional software)
3. Get Money
Oh boy, this will eventually be a post of its own. I would say $2,500 is a nice start. If you open a margin account (which requires a minimum balance of $2,000), you will be able to trade at a 2:1 ratio, MEANING that you can trade with $5,000 even though you only deposited $2,500. Of course there are potentially more risks, which is why you MUST have a good risk management system in place.
Note: I was not endorsed by any of the suggestions I made. If you believe you have a good trading education service, hook me up with a free trial and I will write a no-BS review for my readers.