Lucrative, exciting, enticing, and with the promise of significant gains, it’s no surprise that day trading is gaining popularity these days. It’s a relatively simple concept; day traders purchase stock early in the day and then sell it within the next few minutes or hours if they can profit.
However, profiting from the buying and selling of individual companies over a short period of time is not as simple as it appears. According to Zack Morris, co-founder of Atlas Trading and a self-made multimillionaire stock trader, stock trading entails far more than simply buying and selling various stocks in the hopes of earning a few dollars.
He does believe, however, that everyone deserves to be a part of the stock trading community and to have the opportunity to achieve financial independence. With that in mind, he discusses the best stock trading practices that beginners should follow in order to master the fundamental skills necessary to improve their odds.
1. Recruit a mentor or a friend to assist you in your learning.
All successful investors throughout history and the present have had mentors. As Zack Morris points out, it is always easier to learn from someone who has already gone through the ordeal.
However, he does note that it is not always easy to find someone with a fundamental understanding of the stock market who is willing to answer questions, provide assistance, recommend useful resources, and keep spirits high during stressful times.
“Finding a good mentor is not easy. This is why I established Atlas Trading,” he says. “Today, Atlas Trading is one of the largest stock trading chat rooms in the world, having assisted thousands of experienced and novice traders alike in navigating the trading world.”
2. Acquire the ability to read and monitor the stock market.
Zack Morris emphasizes that many recent newcomers to stock trading must be willing to invest countless hours learning the ropes and conquering those initial steps.
“There is an abundance of information that is easily accessible online,” he says. “As I suffered my first trading loss, I struggled to comprehend how people could make a living from trading. However, rather than giving up, I began researching how and why certain stocks move and what causes them to break out or move in such a manner.”
Morris frequently spent nights conducting extensive stock market research and mornings discussing headlines with some of the other traders at the time. “Learning and researching are what enabled me to earn $12,000 on my subsequent trade with GEVO and shaped me into the successful trader I am today.”
3. Set your sights on the prize.
Trading initiates a journey that frequently leads to a destination that was not anticipated at the outset. As Zack Morris explains, the most critical factor in the trading game is the mind’s resilience.
“The greatest obstacle is believing in yourself when things do not go your way. This is where you demonstrate your true self,” he asserts. “That is why mindset is critical in trading. You must keep in mind that everything else is background noise and that you must focus on the big picture.”