Stock Market For Beginners 📈 TRADING AND INVESTING 101
So today I want to talk to you guys about a couple of tips I have for you if you're just getting into the realm of investing in stocks and I know it sounds like a wonderful thing to do it sounds so easy you just buy stocks and they go up and you make all kinds of money it's not true I mean it can be true but you need to have a basic understanding of what you're doing these are things that I wish I could go back in time and tell my former self about the stock market that way I wouldn't have made these mistakes in the first place so here's what happened I kind of got into stock market trading just out of something I've always been interested in I've wanted to trade stocks since I was like eight years old I can remember a trip to New York City where I was when I saw the stock tickers for the first time I was just fascinated by them I was like this is something that I really want to learn how to do I just loved the idea behind the stock market and then that day in New York City I picked up a Wall Street Journal and I read it the whole way hole on my the bus ride that we took to New York City that's where my interest in stocks started and now the problem was in order to invest you need to have money and I didn't have any money at the time so it's kind of something that was on the back burner for me for a number of years and then recently when I started working and having money coming in and having extra money on the side I decided to start investing in some individual stocks and I I'm the kind of person that likes to learn by doing trial by fire I've always been that kind of person I don't like to just have the path carved out for me always I kind of like to go through things myself and experience the firsthand but for those of you who maybe don't want to waste a bunch of your money trading stocks in making bad trades and learning the hard way I have six tips for you that I wish I could go back and tell myself because I mean I don't I don't regret going through what I did with the stock market because I learned a lot going through what I did but for somebody who maybe doesn't have as thick of skin and as much ability to take loss as I do I don't know if that sounds right but if you're not looking to spend because I'm not gonna lie to you guys I traded stocks for nine straight months never made profit on nine months I mean bad traits now on to the point where I consistently make a few hundred bucks a week trading stocks spending one to two hours a week doing this so I've gotten past that learning curve and gotten to the point where I'm making good trades and making a good amount of money with very little time and then I just wanted to mention before I get into the video here the six tips for the last three months I've been working on a trading diet or a strategy guide for a stock market trading based on all the information that I've been studying over the last year or two on the stock market I've read dozens of books and guides and talked to many people about trading stocks and I kind of collected all my favorite pieces of information into my stock market trading guide and I think it's a great place to start if you're somebody looking to get into investing and you want to know what's kind of signals am I looking for how do I pick a stock what's not should be on my watch list I feel like it is a great foundation for you as far as stock trading goes so if that's something you might be interested in I will link it up in the description and there also should be some kind of icon on the video on the corner you can click on that and that will direct you to the page that tells you more about that if you're interested but without further ado I'm not even sure if that's the freezing for that but we're going to get into my six tips for stock market trading all right my first tip for investing stocks as a beginner is get over your emotional attachment to money I'm gonna say this again because it's really really important get over your emotional attachment to money as you've grown up you've become very emotionally attached to money you love money you want to make more money and you want to hold it close to you and you want to protect it and you want to you know minimize the risks and you want to be very safe and you want to you have emotional swings with your money if you lose money if you spend too much money it's all driven by emotion and that's really gonna screw you up when it comes to trading stocks where I learned this of the book is Rich Dad Poor Dad by Robert Kiyosaki he sold 40 million copies of that book so I'd be very surprised if this is the first time you've ever heard anybody mention that book but if it is I think I paid about $7 Amazon and it was life-changing to say the least I've learned so much good stuff from that book but this is like one of the number one things I learned from that book as it pertains to stock market training money is not real you got to realize it's something that we collectively give value to it's something that we make up to represent the value of something you know we don't want to be carrying around bags of corn and blocks of gold and precious metal anymore so we decided to have a universal value associated with items start thinking of money as that don't think of it as this emotional thing that you cherishing you love it it can't be that or else you will be so afraid to lose money that you'll lose money once or you'll get your emotions evolved on training and that's not the place for your emotions trust me your emotions are very valuable tool in other areas of your life but when it comes to the stock market leave them at the door then you have no business in your trading strategy you want to be trading based on technical data the numbers in front of you the charts in front of you and nothing else you don't want to be trading based on how you feel that day maybe you got a bad night's sleep that you should not bring that into your trading strategy that needs to stay in other areas of your life keep your emotions separate from your stock market trading you can't be emotionally attached to your money because the truth is with stock market trading you're going to win some and you're going to lose some the idea is your wins will outweigh your losses you're gonna be winning more trades than you are losing trades and that's how you're making profit over time there's no way you can always be right but if you're trading based on data and nothing else you're going to have the best chances of being right because you're not going to wake up one day and see that you that your stock fell and all of a sudden you you go oh my god I've lost $1,000 I better sell you only lose that money if you sell you only lose if you sell it could go back up all right and if you have data in front of you that may show you that oh it may go back up oh there's a good reason for this oh it's just market or industry correction you need to start trading based on data and not your emotion okay my second tip for somebody as a beginning stock market trader is invest in something you actually care about and I feel like this should be a no-brainer but it's not because I made this mistake too this is kind of what my stock market strategy looked like when I first started trading I'd wake up and I would open up Google News and I'd be like I scroll through there'd be like oh somebody said that this stock is going crazy it's blowing up it's got so much potential let me buy it I bought stock in a jewelry company I bought stock in biomedical companies I bought stock in oil I mean I don't have an emotional attachment to any of those things I mean I know I just said don't have an emotional attachment to your money but it is okay to have an emotional attachment to the stock you're representing you want to buy stock in something you actually care about if you really like video memes find a video game company or anything involving video games something that has to do with something you actually care about for me I'll give you my example I live around malta and right in malta there's a big chip fabrication plant and they make chips for AMD and i've bought stock in AMD simply because I've seen what AMD they're the main ship that that company is making chips for over there in Malta but I've seen what that has done to our local economy and I'm so thankful for them for coming here and so for me I have an emotional attachment to that stock because I'm like you know I'm really happy I'm proud to represent that company with my money and as a result when you buy something that you're proud of when you buy something you're actually interested in when you're buying something you care about you'll be less likely to sell based on fear and panic now I've pulled this story a lot because it's a very true story if you I mean it's not something that's it's just a really good example of this I bought shares of AMD and I've walked them at a terrible time and I had no idea but I watched sharise on the very next day they company unloaded a bunch of shares they offered them to the public at a much lower valuation then the stock was currently valued on at the stock market what they were doing was they were selling stocks in order to pay off high interest debt so in the long run it was a great move in the short term it decimated the stock I mean I saw the stock go from seven I bought the stock I believe 744 share it hit like just under six dollars a share within two days so as far as my trade goes within two days I was down over a thousand dollars okay if I didn't care about that company I would have sold I guarantee you I would have sold I would have said you know what this was a stupid idea why did I buy this I better sell before I do is more money but because I cared about the company I was like you know what I don't think this is the end I don't think this is it I'm gonna hold and see what happens and I ended up making over $1,000 on that stock not even two months afterwards so because I care about that company and I was proud to represent them with my money I ended up not selling at the bottom I was able to you know weather the storm and you know I wasn't worried about fear and panic I had you know confidence in that company and as a result I was a hold on to it and I sold it I made a good profit not not long afterwards so that's something you guys really need to do when you're looking at stocks pick a stock and the company that you actually care about our industry that you actually have interested all right I'm sure with this third tip some of you out there are looking at me like I know but a lot of people don't know this and I had the same problem with this tip the third tip buy low sell high I'm gonna say it again buy low sell high one more time buy low sell high I'm sure every person you've ever talked to about trading stocks just pulled this piece of information but nobody follows this rule and I'm going to explain to you why you need to be going against the grain with your trading you don't want to be buying a stock when everybody else is piling into it that is called the herd mentality in my ebook I talked about how there's three types of people who trade out there there's people make bearish investments those are people who are betting on the stock to go down and they make money from falling stock prices there's bullish investors who are betting on the stock to go up and they make money from rising stock prices for the most part that's where the majority of people are trading and then there are the sheep and the Sheep follow the herd being led by other people because they don't have the confidence to make decisions themselves and they get slaughtered by the market the stock market is unforgiving it's true it really is it will it can make you or it can break you there is no forgiveness when it comes to trading stocks so if you go online and you do what I did where I was going online and watching what stock was way the hell up it was flying you know the sky's the limit with this stock you got people on the news just talking about this stock left the right everyone's piling into it I was like I can't lose I better get into this stock well what's up you want your mind tells you you want to get into a good thing and we see a stock in decline almost as like a sick stock and you can't look at it that way you want to buy low you want to buy that stock what everybody else is selling you want to be seeing people on the news saying get rid of this stock I mean within reason if it's if you see other reasons to buy that stock it's not like you just want to go out there and buy a loser stock you want to do your research and understand why is the stock is going down in value but you don't want to buy stocks that are sky-high their net they're gonna come down it's all hype you don't want to buy stocks based on hype you're going to end up losing a lot of money that way I can't tell you how many stocks I bought based on what I saw on the news I know one of them like I said I bought a jewelry company I bought Signet jewelers and for some reason I read an article on like seeking alpha or one of those trading sites that was like this stock has unlimited potential where we could see this stock trading 10% above the words trading in the next two months I was like of course it will it's so high right now you know my head was in the clouds with the stock and unfortunately reality sending the stock went down and I lost money and I sold down I bought high and I sold low and everybody seems to understand this if you ask them how to trade stocks they will say if you tell them buy low sell we'll say yeah but give me a real piece of advice and they don't follow this Pete this key rule this is like the cardinal rule of trading and I know every time I talk to people about stocks and I give them this piece of advice they think I'm being an asshole but I'm not people don't understand this this is the cardinal rule of trading they think I'm mocking them like oh here's the tip guys buy low sell high but it is the cardinal rule of trading and you may think you understand it but I didn't understand it even after reading book after book I didn't get it until I really realized what I was doing you do without realizing it you buy a hot stock in the news you don't want to do that it's as simple as that okay tip number four quick and easy one this is something again if you haven't guessed these are all mistakes that I've made in the past and I'm sharing these with you so this is something I did over and over in the past when I first started trading I put like five hundred dollars in my trading account and I was like well I don't want to spend it all in one place so why don't I buy like a couple of different stocks diversification is not a bad idea but when you invest so little you have to overcome your Commission before you can even make a profit and in most cases you're never going to and I mean explain to you why that is if you don't realize this just because this is a beginners but I want to explain this when you go on any website etrade Scottrade when you're going through a online stock broker or any stock broker they're going to charge a commission for trading your stock the prices vary based on websites your based on if you're using a life broker or whatever you're using you know human broker but for me online I trade with Scottrade and it's like $7 a trade some of the sites are a little bit more but Scott trade seems to be like the best bang for your buck as far as that what I found and just throwing this out there I'm not paid by Scott trade I wish I was however I'm not but I just like to tell people exactly how I knew things because uh I like to be transparent even if I'm not getting paid for I want to be honest with you so when I was trading with Scott trade I bought a number of stocks and companies you know or I bought a number of company stocks spending about a hundred dollars on each trade so here's the problem with that let's say you spend $100 in stock of the ABC company which that doesn't exist I just made that up but you're gonna pay seven dollars on Scottrade to buy that stock alright then you're gonna pay seven dollars to sell that stock so yes you pay Commission every time you trade a round trip is opening and closing a position so every round trip you're gonna pay $is how much your stock would need to increase just to offset your commission costs let me say that one more time fourteen percent before you even make a profit let's not talk about slippage though or no let's talk about slippage because what is slippage slippage is the difference between the buy and the ask price for that stock so just because the stock is trading at a certain value doesn't mean that you're going to get that exact price for it now when you trade a higher volume stock there's less slippage because there's more trading going on but you could possibly if you're treating a lower volume stock have a good amount of slippage which means that maybe the stock is trading at 20 dollars and 10 cents a share of it you only get $a share for it because that's what the current buy and ask prices are for the stock so you won't necessarily get the quote of the stock at the time because of slippage so your stock needs to increase 14% in value plus whatever slippage is involved before you even break even so let's say you were trying to make $20 on this stock you know you invested a hundred you're hoping to get 120 that means that the stock would have to increase 14% to 114 before you even made any money and then account for your slippage you're talking about having that stock raised 30 or 40 percent somewhere around there before you even make any money on that but you know that's that's the point when you're making your $20 but even if the stock increased 15% which ask anyone that's a great stock that's a great investment if you have a 15% return on investment you haven't made a penny you haven't even made back your money yet when it's increased 14% and if it increased 14% and you sold because of slippage you would probably still break even or end up slightly in the hole on that stock that is I suggest you do not invest any less than $1,000 on any given trade if you don't have the money to invest thousand dollars save your money and spend your time right now researching and learning more I promise you guys I know you're eager to get into the stock market but it will not hesitate to kick you right in the gut and send you back to your chair okay it will teach you a lesson whether or not you want that lesson I'm gonna be honest with you guys okay so my fifth tip for beginning stock market trader is do not buy the news this is something that I did like many times over and over and it's something a lot of people do you go on like NBC or any news channel and you're watched like you know the money in the financing reports and the shows that are all about the stock market and they talk about what the newest Hotte stock is and I know earlier in this video we talked about the herd mentality and when you run with the herd you're treating like a sheep that what that means is you don't have the confidence to make your own investment decisions so you'd rather have somebody else tell you what to do and when somebody else is telling you what to do it makes you feel like okay if I lose money I can blame them you need to hold yourself accountable for your trades in one way of doing this is don't trade the news there's a lot of people out there trading the news a lot of people watch the news and a lot of people trade the news what you want to do instead is you want to buy the rumor sell the news so let's say for example there's articles out there saying okay this company may be releasing a new product on this date that's a rumor okay it's possible that it's just a rumor and it's not true but on the chance that is true you may want to make a small investment in that then you find out okay it wasn't just a rumor it was true and then they released this new product the stock goes flying sky high that's the point when that stock becomes news that's the point when all the sheep are dogpiling into that stock and it's going way high but you bought before people knew what was going on you bought before was mainstream and as such you paid a lower price for that stock and now you're able to make a comfortable profit sell while it's safe before that hype ends in the stock falls over because it's my second point here guys is not a safe investment I don't like to trade hype okay so my final stock market trading tip for beginners is this check stocks a few times a day I actually forgot what it was so I had to turn around and look at that so if you're wondering what that was I completely forgot what my tip was but now that I jog my memory let me elaborate on that for you guys you don't want to check your stocks every minute of the day I know it's exciting it really is that's the reason I trade it's an adrenaline rush when all of a sudden you buy a stock and and it's going it's going sky-high and all of a sudden you're like I actually made money trading a stock oh my god but you don't want to just sell immediately because there's potential for more and you don't want to be watching the stock so carefully that you get shaken out of the position too early I've done I've done this many times where all of a sudden I'll check my stock like I you know the stock market opens at I remember on one occasion it was like in the morning I log on and I'm like holy crap my stock is up and I think I had like about $140 profit at that time and I kept like hitting refresh like every 15 seconds and like oh what's up oh crap I lost money oh look up two cents now oh no we're down three cents oh we're back up four cents you can't watch a stock that carefully because it's going to be changing so minutely at that point that you need to look at what the trend is maybe the 15-minute trend a 30-minute trend of that stock so what I do for myself now because I made this a rule for myself after I made this mistake of getting shaken out of a position too early and on that mistake I mean yes I did make money on that stock this was one of my early AMD trades okay I had like $180 profit okay I logged on and I saw watching the chart minute to minute that the stock fell like three minutes in a row and I'm like oh god it must be doomed it's going down this is the this is the most people are willing to pay for the stock I better unload and then the next day that I sold I want to make $1300 but instead I made 180 because I got shaken out of my position so that's the lesson for you guys take a time increment no less than every 50 minutes in my opinion so if you're getting excited about your stock and say it's tight o'clock in the morning you check the opening numbers on the stock and you see it's up say okay I'm gonna close this at I'll check again at I'll check again 11 o'clock I'll check again do not leave stock charts continuously open on your phone or your computer if you will get shaken out of a position and it may not be a bad thing because look you made some money okay yes that was a successful trade for me on AMD I made like 180 bucks but had I not gotten shaking out of my position I may have made $1000 on that early Trade and I've traded AMD a number of times and I have done well with that stock but I could have done a lot better had I not gotten shaken out of it because I was checking the stock too much like I said guys it's exciting it should be exciting because once you are able to take this knowledge you have and apply it in the real world and be able to pull money out of thin air it's amazing it's a great feeling it's a rush and that's why I trade all the time but you need to you know keep your emotions in check and make sure that you're not playing it too safe because for me I left a lot of money on the table because I was watching my charts too closely okay guys that's pretty much all I got for you these are my six tips for a beginning stock market trader and these are things that again I wish I knew when I started but I was able to learn them in the long run and I went from trading nine months in a row without profit to making a couple hundred bucks a week by trading one to two hours a week it's not hard guys and if you watch this video all the way I just wanted to thank you for spending the time you did with me and I really hope I was able to shed some light on this topic for you guys and if this information is something that interests you I really think that my ebook might help you out as well because it kind of expands upon a lot of this stuff in it outline my exact training strategy of how I am consistently making a couple hundred bucks a week with very little effort trading stocks but I thank you guys for watching and I hope to see you in the next video.
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So today I want to talk to you guys about a couple of tips I have for you if you're just getting into the realm of investing in stocks and I know it sounds like a wonderful thing to do it sounds so easy you just buy stocks and they go up and you make all kinds of money it's not true I mean it can be true but you need to have a basic understanding of what you're doing these are things that I wish I could go back in time and tell my former self about the stock market that way I wouldn't have made these mistakes in the first place so here's what happened I kind of got into stock market trading just out of something I've always been interested in I've wanted to trade stocks since I was like eight years old I can remember a trip to New York City where I was when I saw the stock tickers for the first time I was just fascinated by them I was like this is something that I really want to learn how to do I just loved the idea behind the stock market and then that day in New York City I picked up a Wall Street Journal and I read it the whole way hole on my the bus ride that we took to New York City that's where my interest in stocks started and now the problem was in order to invest you need to have money and I didn't have any money at the time so it's kind of something that was on the back burner for me for a number of years and then recently when I started working and having money coming in and having extra money on the side I decided to start investing in some individual stocks and I I'm the kind of person that likes to learn by doing trial by fire I've always been that kind of person I don't like to just have the path carved out for me always I kind of like to go through things myself and experience the firsthand but for those of you who maybe don't want to waste a bunch of your money trading stocks in making bad trades and learning the hard way I have six tips for you that I wish I could go back and tell myself because I mean I don't I don't regret going through what I did with the stock market because I learned a lot going through what I did but for somebody who maybe doesn't have as thick of skin and as much ability to take loss as I do I don't know if that sounds right but if you're not looking to spend because I'm not gonna lie to you guys I traded stocks for nine straight months never made profit on nine months I mean bad traits now on to the point where I consistently make a few hundred bucks a week trading stocks spending one to two hours a week doing this so I've gotten past that learning curve and gotten to the point where I'm making good trades and making a good amount of money with very little time and then I just wanted to mention before I get into the video here the six tips for the last three months I've been working on a trading diet or a strategy guide for a stock market trading based on all the information that I've been studying over the last year or two on the stock market I've read dozens of books and guides and talked to many people about trading stocks and I kind of collected all my favorite pieces of information into my stock market trading guide and I think it's a great place to start if you're somebody looking to get into investing and you want to know what's kind of signals am I looking for how do I pick a stock what's not should be on my watch list I feel like it is a great foundation for you as far as stock trading goes so if that's something you might be interested in I will link it up in the description and there also should be some kind of icon on the video on the corner you can click on that and that will direct you to the page that tells you more about that if you're interested but without further ado I'm not even sure if that's the freezing for that but we're going to get into my six tips for stock market trading all right my first tip for investing stocks as a beginner is get over your emotional attachment to money I'm gonna say this again because it's really really important get over your emotional attachment to money as you've grown up you've become very emotionally attached to money you love money you want to make more money and you want to hold it close to you and you want to protect it and you want to you know minimize the risks and you want to be very safe and you want to you have emotional swings with your money if you lose money if you spend too much money it's all driven by emotion and that's really gonna screw you up when it comes to trading stocks where I learned this of the book is Rich Dad Poor Dad by Robert Kiyosaki he sold 40 million copies of that book so I'd be very surprised if this is the first time you've ever heard anybody mention that book but if it is I think I paid about $7 Amazon and it was life-changing to say the least I've learned so much good stuff from that book but this is like one of the number one things I learned from that book as it pertains to stock market training money is not real you got to realize it's something that we collectively give value to it's something that we make up to represent the value of something you know we don't want to be carrying around bags of corn and blocks of gold and precious metal anymore so we decided to have a universal value associated with items start thinking of money as that don't think of it as this emotional thing that you cherishing you love it it can't be that or else you will be so afraid to lose money that you'll lose money once or you'll get your emotions evolved on training and that's not the place for your emotions trust me your emotions are very valuable tool in other areas of your life but when it comes to the stock market leave them at the door then you have no business in your trading strategy you want to be trading based on technical data the numbers in front of you the charts in front of you and nothing else you don't want to be trading based on how you feel that day maybe you got a bad night's sleep that you should not bring that into your trading strategy that needs to stay in other areas of your life keep your emotions separate from your stock market trading you can't be emotionally attached to your money because the truth is with stock market trading you're going to win some and you're going to lose some the idea is your wins will outweigh your losses you're gonna be winning more trades than you are losing trades and that's how you're making profit over time there's no way you can always be right but if you're trading based on data and nothing else you're going to have the best chances of being right because you're not going to wake up one day and see that you that your stock fell and all of a sudden you you go oh my god I've lost $1,000 I better sell you only lose that money if you sell you only lose if you sell it could go back up all right and if you have data in front of you that may show you that oh it may go back up oh there's a good reason for this oh it's just market or industry correction you need to start trading based on data and not your emotion okay my second tip for somebody as a beginning stock market trader is invest in something you actually care about and I feel like this should be a no-brainer but it's not because I made this mistake too this is kind of what my stock market strategy looked like when I first started trading I'd wake up and I would open up Google News and I'd be like I scroll through there'd be like oh somebody said that this stock is going crazy it's blowing up it's got so much potential let me buy it I bought stock in a jewelry company I bought stock in biomedical companies I bought stock in oil I mean I don't have an emotional attachment to any of those things I mean I know I just said don't have an emotional attachment to your money but it is okay to have an emotional attachment to the stock you're representing you want to buy stock in something you actually care about if you really like video memes find a video game company or anything involving video games something that has to do with something you actually care about for me I'll give you my example I live around malta and right in malta there's a big chip fabrication plant and they make chips for AMD and i've bought stock in AMD simply because I've seen what AMD they're the main ship that that company is making chips for over there in Malta but I've seen what that has done to our local economy and I'm so thankful for them for coming here and so for me I have an emotional attachment to that stock because I'm like you know I'm really happy I'm proud to represent that company with my money and as a result when you buy something that you're proud of when you buy something you're actually interested in when you're buying something you care about you'll be less likely to sell based on fear and panic now I've pulled this story a lot because it's a very true story if you I mean it's not something that's it's just a really good example of this I bought shares of AMD and I've walked them at a terrible time and I had no idea but I watched sharise on the very next day they company unloaded a bunch of shares they offered them to the public at a much lower valuation then the stock was currently valued on at the stock market what they were doing was they were selling stocks in order to pay off high interest debt so in the long run it was a great move in the short term it decimated the stock I mean I saw the stock go from seven I bought the stock I believe 744 share it hit like just under six dollars a share within two days so as far as my trade goes within two days I was down over a thousand dollars okay if I didn't care about that company I would have sold I guarantee you I would have sold I would have said you know what this was a stupid idea why did I buy this I better sell before I do is more money but because I cared about the company I was like you know what I don't think this is the end I don't think this is it I'm gonna hold and see what happens and I ended up making over $1,000 on that stock not even two months afterwards so because I care about that company and I was proud to represent them with my money I ended up not selling at the bottom I was able to you know weather the storm and you know I wasn't worried about fear and panic I had you know confidence in that company and as a result I was a hold on to it and I sold it I made a good profit not not long afterwards so that's something you guys really need to do when you're looking at stocks pick a stock and the company that you actually care about our industry that you actually have interested all right I'm sure with this third tip some of you out there are looking at me like I know but a lot of people don't know this and I had the same problem with this tip the third tip buy low sell high I'm gonna say it again buy low sell high one more time buy low sell high I'm sure every person you've ever talked to about trading stocks just pulled this piece of information but nobody follows this rule and I'm going to explain to you why you need to be going against the grain with your trading you don't want to be buying a stock when everybody else is piling into it that is called the herd mentality in my ebook I talked about how there's three types of people who trade out there there's people make bearish investments those are people who are betting on the stock to go down and they make money from falling stock prices there's bullish investors who are betting on the stock to go up and they make money from rising stock prices for the most part that's where the majority of people are trading and then there are the sheep and the Sheep follow the herd being led by other people because they don't have the confidence to make decisions themselves and they get slaughtered by the market the stock market is unforgiving it's true it really is it will it can make you or it can break you there is no forgiveness when it comes to trading stocks so if you go online and you do what I did where I was going online and watching what stock was way the hell up it was flying you know the sky's the limit with this stock you got people on the news just talking about this stock left the right everyone's piling into it I was like I can't lose I better get into this stock well what's up you want your mind tells you you want to get into a good thing and we see a stock in decline almost as like a sick stock and you can't look at it that way you want to buy low you want to buy that stock what everybody else is selling you want to be seeing people on the news saying get rid of this stock I mean within reason if it's if you see other reasons to buy that stock it's not like you just want to go out there and buy a loser stock you want to do your research and understand why is the stock is going down in value but you don't want to buy stocks that are sky-high their net they're gonna come down it's all hype you don't want to buy stocks based on hype you're going to end up losing a lot of money that way I can't tell you how many stocks I bought based on what I saw on the news I know one of them like I said I bought a jewelry company I bought Signet jewelers and for some reason I read an article on like seeking alpha or one of those trading sites that was like this stock has unlimited potential where we could see this stock trading 10% above the words trading in the next two months I was like of course it will it's so high right now you know my head was in the clouds with the stock and unfortunately reality sending the stock went down and I lost money and I sold down I bought high and I sold low and everybody seems to understand this if you ask them how to trade stocks they will say if you tell them buy low sell we'll say yeah but give me a real piece of advice and they don't follow this Pete this key rule this is like the cardinal rule of trading and I know every time I talk to people about stocks and I give them this piece of advice they think I'm being an asshole but I'm not people don't understand this this is the cardinal rule of trading they think I'm mocking them like oh here's the tip guys buy low sell high but it is the cardinal rule of trading and you may think you understand it but I didn't understand it even after reading book after book I didn't get it until I really realized what I was doing you do without realizing it you buy a hot stock in the news you don't want to do that it's as simple as that okay tip number four quick and easy one this is something again if you haven't guessed these are all mistakes that I've made in the past and I'm sharing these with you so this is something I did over and over in the past when I first started trading I put like five hundred dollars in my trading account and I was like well I don't want to spend it all in one place so why don't I buy like a couple of different stocks diversification is not a bad idea but when you invest so little you have to overcome your Commission before you can even make a profit and in most cases you're never going to and I mean explain to you why that is if you don't realize this just because this is a beginners but I want to explain this when you go on any website etrade Scottrade when you're going through a online stock broker or any stock broker they're going to charge a commission for trading your stock the prices vary based on websites your based on if you're using a life broker or whatever you're using you know human broker but for me online I trade with Scottrade and it's like $7 a trade some of the sites are a little bit more but Scott trade seems to be like the best bang for your buck as far as that what I found and just throwing this out there I'm not paid by Scott trade I wish I was however I'm not but I just like to tell people exactly how I knew things because uh I like to be transparent even if I'm not getting paid for I want to be honest with you so when I was trading with Scott trade I bought a number of stocks and companies you know or I bought a number of company stocks spending about a hundred dollars on each trade so here's the problem with that let's say you spend $100 in stock of the ABC company which that doesn't exist I just made that up but you're gonna pay seven dollars on Scottrade to buy that stock alright then you're gonna pay seven dollars to sell that stock so yes you pay Commission every time you trade a round trip is opening and closing a position so every round trip you're gonna pay $is how much your stock would need to increase just to offset your commission costs let me say that one more time fourteen percent before you even make a profit let's not talk about slippage though or no let's talk about slippage because what is slippage slippage is the difference between the buy and the ask price for that stock so just because the stock is trading at a certain value doesn't mean that you're going to get that exact price for it now when you trade a higher volume stock there's less slippage because there's more trading going on but you could possibly if you're treating a lower volume stock have a good amount of slippage which means that maybe the stock is trading at 20 dollars and 10 cents a share of it you only get $a share for it because that's what the current buy and ask prices are for the stock so you won't necessarily get the quote of the stock at the time because of slippage so your stock needs to increase 14% in value plus whatever slippage is involved before you even break even so let's say you were trying to make $20 on this stock you know you invested a hundred you're hoping to get 120 that means that the stock would have to increase 14% to 114 before you even made any money and then account for your slippage you're talking about having that stock raised 30 or 40 percent somewhere around there before you even make any money on that but you know that's that's the point when you're making your $20 but even if the stock increased 15% which ask anyone that's a great stock that's a great investment if you have a 15% return on investment you haven't made a penny you haven't even made back your money yet when it's increased 14% and if it increased 14% and you sold because of slippage you would probably still break even or end up slightly in the hole on that stock that is I suggest you do not invest any less than $1,000 on any given trade if you don't have the money to invest thousand dollars save your money and spend your time right now researching and learning more I promise you guys I know you're eager to get into the stock market but it will not hesitate to kick you right in the gut and send you back to your chair okay it will teach you a lesson whether or not you want that lesson I'm gonna be honest with you guys okay so my fifth tip for beginning stock market trader is do not buy the news this is something that I did like many times over and over and it's something a lot of people do you go on like NBC or any news channel and you're watched like you know the money in the financing reports and the shows that are all about the stock market and they talk about what the newest Hotte stock is and I know earlier in this video we talked about the herd mentality and when you run with the herd you're treating like a sheep that what that means is you don't have the confidence to make your own investment decisions so you'd rather have somebody else tell you what to do and when somebody else is telling you what to do it makes you feel like okay if I lose money I can blame them you need to hold yourself accountable for your trades in one way of doing this is don't trade the news there's a lot of people out there trading the news a lot of people watch the news and a lot of people trade the news what you want to do instead is you want to buy the rumor sell the news so let's say for example there's articles out there saying okay this company may be releasing a new product on this date that's a rumor okay it's possible that it's just a rumor and it's not true but on the chance that is true you may want to make a small investment in that then you find out okay it wasn't just a rumor it was true and then they released this new product the stock goes flying sky high that's the point when that stock becomes news that's the point when all the sheep are dogpiling into that stock and it's going way high but you bought before people knew what was going on you bought before was mainstream and as such you paid a lower price for that stock and now you're able to make a comfortable profit sell while it's safe before that hype ends in the stock falls over because it's my second point here guys is not a safe investment I don't like to trade hype okay so my final stock market trading tip for beginners is this check stocks a few times a day I actually forgot what it was so I had to turn around and look at that so if you're wondering what that was I completely forgot what my tip was but now that I jog my memory let me elaborate on that for you guys you don't want to check your stocks every minute of the day I know it's exciting it really is that's the reason I trade it's an adrenaline rush when all of a sudden you buy a stock and and it's going it's going sky-high and all of a sudden you're like I actually made money trading a stock oh my god but you don't want to just sell immediately because there's potential for more and you don't want to be watching the stock so carefully that you get shaken out of the position too early I've done I've done this many times where all of a sudden I'll check my stock like I you know the stock market opens at I remember on one occasion it was like in the morning I log on and I'm like holy crap my stock is up and I think I had like about $140 profit at that time and I kept like hitting refresh like every 15 seconds and like oh what's up oh crap I lost money oh look up two cents now oh no we're down three cents oh we're back up four cents you can't watch a stock that carefully because it's going to be changing so minutely at that point that you need to look at what the trend is maybe the 15-minute trend a 30-minute trend of that stock so what I do for myself now because I made this a rule for myself after I made this mistake of getting shaken out of a position too early and on that mistake I mean yes I did make money on that stock this was one of my early AMD trades okay I had like $180 profit okay I logged on and I saw watching the chart minute to minute that the stock fell like three minutes in a row and I'm like oh god it must be doomed it's going down this is the this is the most people are willing to pay for the stock I better unload and then the next day that I sold I want to make $1300 but instead I made 180 because I got shaken out of my position so that's the lesson for you guys take a time increment no less than every 50 minutes in my opinion so if you're getting excited about your stock and say it's tight o'clock in the morning you check the opening numbers on the stock and you see it's up say okay I'm gonna close this at I'll check again at I'll check again 11 o'clock I'll check again do not leave stock charts continuously open on your phone or your computer if you will get shaken out of a position and it may not be a bad thing because look you made some money okay yes that was a successful trade for me on AMD I made like 180 bucks but had I not gotten shaking out of my position I may have made $1000 on that early Trade and I've traded AMD a number of times and I have done well with that stock but I could have done a lot better had I not gotten shaken out of it because I was checking the stock too much like I said guys it's exciting it should be exciting because once you are able to take this knowledge you have and apply it in the real world and be able to pull money out of thin air it's amazing it's a great feeling it's a rush and that's why I trade all the time but you need to you know keep your emotions in check and make sure that you're not playing it too safe because for me I left a lot of money on the table because I was watching my charts too closely okay guys that's pretty much all I got for you these are my six tips for a beginning stock market trader and these are things that again I wish I knew when I started but I was able to learn them in the long run and I went from trading nine months in a row without profit to making a couple hundred bucks a week by trading one to two hours a week it's not hard guys and if you watch this video all the way I just wanted to thank you for spending the time you did with me and I really hope I was able to shed some light on this topic for you guys and if this information is something that interests you I really think that my ebook might help you out as well because it kind of expands upon a lot of this stuff in it outline my exact training strategy of how I am consistently making a couple hundred bucks a week with very little effort trading stocks but I thank you guys for watching and I hope to see you in the next 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