We recently asked a new stock trader to tell us about his journey into the wonderful world of stock trading…..this is what he told us!
Just a couple of button clicks here and there.
This is not intended to be a brag or anything – we just want to show you that stock trading is a real way to make money, in some cases it can become a significant income.
Many people are interested in giving stock trading a go, but they lack the confidence, knowledge or capital to start.
In today’s interview, we want to show you that even a new trader can make significant income quickly with the right resources and mindset.
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Our Interview With Mark, A New Stock Trader
How long have you been trading, and why did you start?
I’ve been trading for about 3 months. A relative gave me $15,000 and asked me to try to double it in one year. She wants to give all the money away to other people who can use it. I love that goal, but I have zero experience trading stocks.
I didn’t even know how to open a brokerage account. I started doing research and found your blog. Reading your honest reviews gave me the confidence I wouldn’t otherwise have. I opened eTrade, Robinhood, Webull, and TDA accounts to try them out.
Ultimately I funded Robinhood with $500 of my own money. I had a few small wins, enough to inspire me to start trading with someone else’s money. I switched to Webull and TDA, split my relative’s money between the two accounts, and started trading alert services you recommended.
Do you trade full-time?
No, I have a full-time job. I think a lot of new traders are probably like me. We don’t have large, well-funded accounts, which might be good given our lack of experience. We have small accounts and big fears! We can’t afford to take big risks and lose the capital we have.
I think trading on the side from your day job is a great way to start. It keeps you humble and patient.
Do you feel nervous when you trade?
Yes, but it’s kind of an excited nervous. I hear veteran traders talk about keeping your emotions out of it, and I try to do that, but it’s hard to do. When you lose money it’s discouraging, and when you win it’s exciting. The whole thing becomes kind of addictive.
Last week there was a glitch with one of my accounts. I hit “sell” to exit the trade, but I don’t think the transaction completed properly. At my exit, I was ahead quite a bit. I lost all of my potential profit.
I noticed that I have to talk myself into the right perspective when things like that happen. At the end of the day, I want to stay grateful that I’m able to trade stocks. It’s a blessing to me.
What has worked for you to keep a positive mindset as a trader?
Well, it’s hard to stay negative when I practice gratitude. To me, it’s a privilege to be so wealthy that we have money that can make us even more money.
Lots of people around the world don’t have that opportunity. It’s a gift to be able to trade stocks. So, gratitude is key for me. Also, I’m a careful, conservative, cautious person by nature when it comes to finances.
I’d rather make slow, steady progress and not risk my capital than I would to make big, risky moves. I’m pretty diligent to exit trades at my stop loss instead of chasing. I also set what I call a “stop win” — which sounds weird, but basically my goal is 5-15% profit on each trade. If I hit that I’m very happy. Seeing slow, steady growth is easier on my psyche than big swings up and down.
How are your accounts doing?
So far so good. The Webull account is +7%, and the TDA account is +9%. So far my accounts keep growing, and I haven’t lost any of my initial startup money.
What type of trading do you like to do?
I was really overwhelmed at first by all the different ways you can trade. Plus, shortly after I started trading the global pandemic hit. All of this created a challenge because the market moved faster than I was prepared to move.
Because of my day job I cannot consistently watch trades. I need to enter a trade, set an alert, then sell when it’s time. Options scare me. Day trades are limited because of the PDT rule. I think I feel most comfortable with short hold overnight swing trades.
Side Note: Come and join our stock trading alerts Facebook group (How To Make Money With Stock Alerts Services)! We also have a Stock Alerts Reviewed YouTube channel which we hope are helpful. As a new trader it’s helpful to be part of a community of traders so you don’t feel you are battling the market alone!
What have you learned that might help other new traders?
Contrary to what the sales pages from all these alert services say, the stock market is not an ATM machine.
Trading is risky, and no one can predict how stocks will perform. I try to take personal responsibility for my trades, instead of blindly following trade alerts. Also, I’m content to hit singles instead of home runs. If I can make 5-15% per trade I’m happy.
It sounds kind of weird to say this on your blog, but honestly, the best thing that happened to me is finding you as a trading mentor. A good mentor makes trading much easier. I’d suggest new traders join your Facebook group. It’s a great community of like-minded people.
Is there anything else you want to try in trading?
Yes, lots of things. I’m a sucker for alert services. I see something new and want to try it. Maybe other new traders feel the same way. I know some people have had success with options trading, so it makes me want to try it.
I’m reading a few things right now about it — Kyle Dennis’ book Dollar Option Trader, and Jeff Bishop’s Total Alpha training. Maybe down the road, I’ll try a few options.
Can you tell us about your experience with different broker platforms?
Choosing a broker is a very personal decision. I chose Robinhood, but I know they have their critics. I’m not sure why because, for me, they check all the boxes. I have realized that choosing a broker is like deciding to paint your house — there are lots of brands to pick from, and they all cover your house pretty well.
I read a bunch of expert reviews and decided to test drive a few before choosing. I opened accounts with eTrade, Webull, TD Ameritrade, and Robinhood. I was looking for rock solid reliability, simple user interface, great mobile app, ability to transfer funds easily between my broker and bank, access to trading options, and fast customer support. Robinhood met all my needs.
However, I started trading shortly after Robinhood collapsed for a day (which made me worry about the “rock solid reliability” part)!
I actually defunded, then closed, my Robinhood account and fully funded Webull and TDA. I really like Webull — fast, smooth, intuitive, versatile, innovative. TDA was fine for a while but then became glitchy filling orders…so I’ve lost confidence in it.
Meanwhile, Robinhood kept hanging around in my mind. A friend recently suggested I dive into options using Robinhood, so I opened a brand new account and I plan to stick with them this time.
What are your favorite stock trading resources that have helped you the most?
I shared my story earlier, so I have to say your stock alert review blog has been a great resource. You’ve also started a Facebook group (How To Make Money With Stock Alerts Services), and Stock Alerts Reviewed YouTube channel which are both super helpful. As a new trader it’s helpful to be part of a community of traders so you don’t feel ignorant and alone.
I watch YouTube videos from “In the Money” on options trading. I regularly read investing newsletters by James Altucher, Tim Sykes, and the Oxford Club (Viper Alerts, Insider Alerts and Oxford Swing Trader) . I’ve read more books than I can count. Interviewed people who are traders.
I tried watching Option Alpha (too complicated). Also sampled a little TastyTrade (didn’t quite connect). I feel like I have more info than I need at the moment, so I’m backing off a little bit. I wonder if other new traders suffer from educational fatigue.
Seems like you have people who either over analyze things, or people who don’t research at all. Both are probably unwise. I’m trying to strike the balance between education and experience.
What market hours do you trade? Do you trade pre-market or after hours? Can you explain to new traders how to place an after hours order?
Since I work full time I mostly do some stuff in the mornings and evenings. I trade once in awhile pre-market, but Robinhood has very limited hours. Extended hours vary by broker, but I’m limited to 30 minutes before the market opens, and 2 hours after it closes.
It’s simple to trade extended hours, but you must place “Limit” buys instead of “Market” buys since market conditions are not known until the market is open.
Here’s what Robinhood says about filling orders for extended hours — During the extended-hours session, the price displayed on a stock’s Detail page is the stock’s real-time price. Orders made outside market hours and extended hours trading are queued and fulfilled either at or near the beginning of extended hours trading or at or near market open, according to your instructions. I’m assuming most brokers work similarly.
Do you think new traders can make money following stock alerts services?
Absolutely. I’m proof positive it can be done because I’m doing it regularly. However, I’m quick to add that it isn’t all champagne and strawberries. The biggest thing I’ve learned is to take responsibility for your own trade. It seems that most of the alert services are pretty decent on the “buy” side of the alert.
The pro traders regularly select good stocks to trade. However, I’m skeptical of the alerts on the “sell” side of the alert. I’ve been burned by waiting until the alert comes out only to find the stock already tanking.
So, I’ve learned to manage my own trades in between the alerts. I set a percentage at which I want to take a profit; I set a smart stop loss — and then I stick pretty closely to both.
Mark has been trading for many months now and his account is still growing. He has not lost all his money or quit the way that 90% of traders do. Maleah and I can’t wait to see where he takes his trading!
We hope that this brief interview with Mark has been helpful!
Russell and Maleah