Why You Should Consider Stock Market Trading In Your Spare Time

by Andrew McGuinness     Jul 16, 2019

Once a hobby and occupation limited to Wall Street brokers and the extremely wealthy, stock market trading has begun to take the United States by storm. The advent of the internet and spread of technology has made stock trading more accessible than ever before- the Average Joe and Jane can get in on the market and potentially change their lives through smart investments. But is investing in the stock market the right choice for you?

One of the greatest benefits that stock trading offers the world is its flexibility and blindness. The stock market doesn't care who you are, what you look like, or what kind of house you live in. It doesn't take any special qualifications, fancy university degrees, or extensive interviews to get the job- all you need to qualify is a willingness to learn and listen from those who have been successful, along with a bit of independent research and a whole lot of time spent monitoring the market. Another benefit of trading stocks is that you can do it from anywhere; now that nearly everyone owns a smartphone or laptop computer, all you need is internet access to begin making investments. Many stay-at-home mothers and professionals who work from home say that they began making their initial investments from the comfort of their couch!

So you think you'd like to start investing in the stock market, but you're not sure how to proceed. Here are three quick tips to help you get started on a successful investing adventure!

Don't go forward alone. One of the biggest mistakes that first-time investors have a tendency to make is throwing all their money at a gut-feeling stock without thoroughly researching whether or not this is a sound and solid investment. Instead of "going with your gut," don't invest any money before you speak to a professional investing advisor or you put in plenty of time researching the future of the company you're looking to trust your money with.

Set goals for yourself. What is your end goal when it comes to trading? Are you saving up for a specific purchase, or are you looking to build a portfolio of stocks that you can one day pass on to your children? Take the time to sit down and write out your goals, and place your written mantra somewhere that you can frequently see it. This strategy is a common one in independent professionals, and will help to keep you motivated through the ups and downs of your journey.

Master your reactions. Another common mistake that first-time investors make all too often? Letting their emotions instead of their logic dictate their trading moves. To be a successful trader, you need to understand how you will react to stress and anticipate it in order to make the best and most logically sound stock trading moves and survive dips in the market. Bull markets are a natural consequence of the market cycle, and unfortunately, so are bear markets. Understanding and anticipating that the market will cycle in and out will help you to prevent making impulsive decisions with your stocks.

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