Trading as a Side Hustle? We've got 5 tips for you.
Are you waking up early to set up your pre-market positions or sneaking a peek at your P&L during the lunch break? You’re not alone. Retail investors are driving 23% of all equity trades this year. Below are top tips successful traders follow:
1. Having a plan. A trader has two choices - follow a plan or fail. In fact, not having a plan or not following one is the single biggest reason traders fail. A good plan addresses these 4 questions:
Are you a value investor, a technical trader, or somewhere in between?
How frequently do you plan to trade? The more trades, the more time you need to spend on planning.
Will you set aside a specific budget for trading every month? This minimizes emotional trading.
How will you record a trade and what you learned from it?
2. Practicing the plan with paper trading. Look for an app with a robust paper trading feature that allows you to simulate buying and selling without risking real money. Your paper trading account should mimic the size of your real portfolio so that you can practice responding to real time price and volume movements and market news.
(You might also like: How to Paper Trade on moomoo)
3. Knowing the right price to buy or sell a stock. Two powerful visual trendspotting tools that help you determine if the price is right to enter or exit a stock are support and resistance levels and moving averages. Learn about these features here.
4. Don't YOLO your rent money on trading. We suggest starting small with money you already have. If you can’t afford to lose it, you can’t afford to trade with it.
5. Stay tuned to market chatter, but keep your perspective. A trading community with like minded traders, such as the moo community of 15 million traders, can help you stay abreast of stock developments. Yet, it’s also important to do your own research on a stock, check emotional reactions and keep your perspective while making trading decisions.
(You might also like: How to do fundamentals analysis)
Now that you have some basics down, are you ready to start trading?
For more investment knowledge and trends, welcome to Courses in the Community.
