Pursuing a full-time career as a stock trader or want to earn passive income? An online trading course is a great way to acquire the skills and knowledge you need. Classes are available for all skill levels and budgets, so you can find the perfect fit with ease.
Before opening your brokerage account, you need to know what you’re aiming to do, how to build an investment strategy, gauge market risk and hunt for the best stock price.
5 Steps for How to Trade Stocks
The process of trading stocks either occurs through an online broker or a personal broker you’ve built a relationship with. Use these steps to trade stocks and get the results you seek. Remember, your trading platform facilitates the investment opportunities that you take part in. You’re responsible for everything else from handling your margin account, learning how to use particular trading tools and seeking out growth potential.
1. Determine Which Stocks You Wish to Purchase
Based on research and trends, you can determine which stock to buy. Ensure that the broker you have chosen supports the exchange where you want to use to invest. Investment management best practices cannot begin until you know where your money should go.
2. Set Your Budget
Create a budget that helps you cap your spending. You don’t want to spend all your money at once, and you should also invest with a goal. Investing without considering how much money you have can be dangerous.
You should not invest money you are not prepared to lose. In a bull market, you might invest less. In a bear market, you might invest more, hunting for value stocks and trying to bolster your retirement saving. Think carefully before clicking the buy or sell button.
3. Choose How Many Shares to Buy
Use your budget to determine how many shares you want to buy. You can increase or decrease your stake at any time. You may choose to build a portion of your portfolio out of stocks from a certain industry. You might set an alert for when a particular share price is reached, letting you know it’s time to buy.
4. Choose an Order Type
When you place a traditional buy or sell order, it occurs immediately. You can choose other types of orders that buy and sell at specified prices, or you could set a limit order that only buys or sells at a price you’ve set. Other order types like all-or-nothing orders sell everything or the order doesn’t process.
5. Complete Your Order
When you complete your order, take note of it in your personal records. Often, it’s best to record the ticker symbol, the number of shares bought and their price. Review your dashboard to ensure that the result of the order is what you intended. At this point, you must decide if you want to invest more money, sell a different asset or wait for more information.
6. Sell for a Profit
Remember, you haven’t taken a loss until you sell. You will probably aim to wait for the price of the stock to rise and take a profit when you need the cash or believe the stock cannot get any more valuable. Repeat the process above to complete a sell order. You might even set limit orders for sales to ensure that you exit each position at the proper time.
Review the fee schedule for your trading application so you know how much you will lose to those fees.
Benefits of Trading Stocks
You access several benefits when you learn how to how to trade stocks.
Boost Your Investment Acumen
The best day traders explore ways to advance their skills and get ahead of the competition using proven strategies. They also know how important it is to make confident decisions and act swiftly to capitalize on opportunities and win at the stock game.
Earn Passive Income
It never hurts to have a stream of income on the side without having to exert much effort. Day trading requires you to be vigilant of market conditions, but you can make your money work hard for you without being glued to the computer or smartphone for hours on end.
A retirement plan from your employer isn’t the only way to build wealth. Day trading can help you reach your retirement goals faster so you can live comfortably in your golden years.
You can also use the profits generated from stock trading to pay off debt, save more and establish a solid financial foundation for your family.
Best Online Stock Brokers
Compare the best online stock brokers to get started with a trading account.
Courses to Learn How to Trade Stocks
If you’re new to stock trading, start with these beginner courses.
1. How to Trade Stocks by Benzinga
- Who it's for: Beginners
- Price: On sale
Benzinga's take-action course, How to Trade Stocks, will help make money in the stock market right away. The course will help you demystify the investing process, give you basic investing tools you can use and help you learn how to establish and monitor your personal portfolio.
2. Day Trading 101: A Beginner’s Guide to Day Trading Stocks by Udemy
- Who it's for: Beginners
- Price: On sale
Learn what it takes to get started as a day trader with this introductory course from Udemy. It covers stock market basics, price fluctuations, chart patterns and so much more.
Day Trading 101: A Beginner’s Guide to Day Trading Stocks is divided into 4 components:
- The Basics
- Chart and Analysis
- Company Fundamentals
- Trading Psychology and Managing Risk
A seat in this course includes full lifetime access to 21 lectures, 3 articles and 1 downloadable resource. You’l also complete quizzes to test your comprehension as you work through the modules.
The class is led by Travis Rose, an experienced day trader and investor.
Opportunities for Investors
Learning how to trade stocks in 2023 can offer opportunities for investors, whether for a full-time career or passive income. Online trading courses cater to all skill levels and budgets, providing the necessary skills and knowledge. Following the trading process, including building an investment strategy, setting budgets, and choosing the right stocks, is crucial for success. Understanding order types and monitoring fees is also important. Trading stocks offers benefits such as boosting investment acumen, earning passive income and building wealth for a secure financial future. By exploring online stock brokers and beginner courses, investors can start their trading journey confidently.
Choose the Best Trading Course for You
You don’t have to spend hours sifting through books and articles to find the knowledge you need to be a successful day trader. Consider one of Benzinga’s beginner courses to approach day trading in a fun and interactive way.
If you already know how to trade stocks but want to beef up your knowledge, start with an intermediate or advanced course. The investment of your time and money will be well worth it.
Frequently Asked Questions
What is stock trading?
Stock trading is the buying and selling of publicly traded company shares on stock exchanges. It allows investors to profit from stock price fluctuations by buying low and selling high. Traders analyze market trends and company financials to make informed investment decisions. Stock trading can be done online, through brokerage firms or on the trading floor.
What are the main differences between trading and investing?
Trading and investing differ in terms of time horizon, risk level and approach. Trading involves shorter timeframes and frequent buying and selling based on technical analysis or market trends while investing has a longer time horizon and focuses on fundamental analysis. Trading carries higher risk and is more active, while investing is a long-term strategy with a passive approach.
Should I start trading?
Deciding whether or not to start trading depends on individual circumstances and goals. Trading can be profitable but also carries risks and requires knowledge and skill. Thorough research, understanding the market and developing a trading strategy are important. Consider risk tolerance, available capital and time commitment. Seeking guidance from experienced traders or financial advisors is recommended.