What are the three rules to making money off of stock trading?

King bell

VIP Contributor
Making money from stock trading can be a great way to generate extra income. However, there are a few things you need to know before you can start making money. Here are three rules to follow if you want to make money from stock trading:

1. Do your research

Before you start trading, it's important to do your research and understand the stock market. You need to know what you're buying and selling, and have a good idea of the risks involved.

2. Start small

When you're first starting out, it's best to start small and gradually increase your investment. This way, you can learn the ropes and get a feel for the stock market before risking a lot of money.

3. Have a plan

It's important to have a plan when you're trading stocks. You need to know what your goals are and how you're going to achieve them. Without a plan, it's easy to make mistakes and lose money.
 

Jasmine

VIP Contributor
First of all, you need to see whether you can handle the pressure of buying and selling stocks. Stock trading requires you to constantly buy stocks, watch the price go up and down and act accordingly (buy more or start to sell). Can you actually handle the pressure? You might have to sit in front of your laptop or watch your mobile screen continuously so that you don't miss any opportunities or avoid the risk of losing money. Well, you sure can automate your trading activities by setting your buy or sell limit order (for example, you sent the price to buy stocks, and as soon as the stock hits that price, buy order will automatically executed, and the same is case with sell as well). However, you will still have to give more value for your human judgement.
Secondly, be careful on where you put money, don't buy stocks from Tom, Dick, and Harry just because the price is low.
 
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