Making a living trading stocks is what many novice traders dream of doing when they start dabbling in stocks and shares but is it really possible without spending your days staring at five screens? Yes, making a living trading trading stocks is absolutely possible but you must be able to manage your expectations, know the best tools to use and the best methods of trading to get you there, including;
- Being able to identify and buy stocks with high dividend payments
- Using tools that systematically provide you with the best daily or weekly stock picks
- Learning how to copy trade to get the most from your time and money, and
- Know how to manage your money and the rules to invest by
Bringing In Cash From Stocks
It’s fair to say that if given the choice, we would all want an easy income but is trading stocks your route to paying the bills without the 9-5? While trading stocks makes earning money from home attainable, learning how to trade successfully is anything but easy. The steep learning curve that comes with learning how to trade yourself can ruin the quick payoff many people hope to achieve but I’m here to say that you shouldn’t write off the chance to make a living from trading stocks just yet, because it is definitely possible to do with the right approach to copy trading.
Ready to dive right in? Check out my top three trading services right here!
Or read on for my tips on how copy trading could be your way to making a living trading stocks, as well as the best services and tools that you need to get going with this great way to boost your income.
Trading stocks can be conducted on a part time or full time basis in order to earn the money you need to fund your way of living. How much you earn will depend on the trading choices you make and the time you want to dedicate to choosing the right trading tools and services to get the job done.
I am going to take you through four simple steps to trading stocks successfully, starting with the importance of being able to identify and buy stocks with high dividend payments.
Find The High Dividend Payments
Using the free time you have to learn how to pick out the right stocks to generate passive income is a great way to while away the hours the pandemic has afforded many of us. Stock trading is a popular investment strategy that involves buying and selling small shares of ownership in public companies (known as stocks), in the hope of making a profit.
One of the best ways to boost your earning potential from stock trading is to choose stocks with high dividend payments. Dividends are payments made to company shareholders from the profits of a company after Corporation Tax and are usually paid out quarterly or annually.
For example, a publicly-traded company offers 3% dividend stocks every quarter. Someone who invested $2,000 will earn $60 quarterly as a dividend for that investment. Annually, that individual can make about $240 for his $2,000. A meager amount in the short term but will prove valuable in the long run.
Before investing in dividend stocks, the first thing to do is find stocks to buy that pay dividends. Make sure that you review dividend yield which tells you how much dividends and paid out by the company to shareholders relative to the current stock price. If its dividend yield is higher than the industry benchmark, it might be in a red flag.
Secondly, always review the payout ratio. This is the percentage of the company’s income that goes to paying as dividends of shareholders. If a stock’s payout ratio is too high or topping 100%, it might indicate that the company is going into debt to pay out dividends.
Find Out More: Stocks to buy with high dividend payment
Stock Picking Services Make It Easier
Using trading tools like Gorilla Trades, that can systematically present you with the best daily stock picks or weekly option picks, and is a great way to skip the laborious task of manual research and monitoring of stocks. The outcome is that you are supplied with the best stocks to invest in.
In my opinion, every new investor needs Gorilla Trades Stock Picks. Its comprehensive stock package has a 21 year proven track record and is suitable for stock trading novices that want to benefit from its automated monitoring of thousands of individual stocks every day in order to present you with the best stocks to trade based on the 14 parameters set.
Find Out More: Pick the best stocks with gorilla trades stock picks
Learn How To Copy Trade Stocks
Copy trading is an automated investment method that allows you to make trades based on another trader’s experience and expertise. It’s the method of trading that I most often use myself and it’s selecting and using the best services and systems available for copy trading that I aim to explain more about on this site.
When it comes to copy trading, all you have to do is to choose an investor to follow and make sure there is enough money in your trading account.
When starting out, copy trading can be a brilliant way to bring your stock trading strategy to life. By choosing to follow an experienced trader’s movements you can reap the rewards of their knowledge of the stock market whilst reducing the steep learning curve involved in learning how to make and manage your own trades.
Find Out More:
There are plenty of copy trading platform providers to choose from including ones where you can copy multiple traders in one account such as eToro and Zulutrade. Others offer a completely automated platform such as Yieldnodes, where you deposit funds and everything else is taken care of for you. Finally there are copy trading services that send out signals for you to action yourself such as Gorilla Trades.
What Else Do You Need To Know?
Due to the unpredictable nature of the stock market, being able to make a living trading stocks is never guaranteed, but you can very easily make a good passive income and can increase your chances of success.
Following the tips already outlined in this article, in conjunction with the four simple steps I’ve outlined below will set you off to a great start when stock trading.
- Choose a reliable online broker
- Select the right trading strategy based on time available to trade and attitude to risk
- Educate and familiarise yourself with the markets you want to trade in
- Stick to your trading plan and give it time to work
For more detail on each, see my post ‘Best ways to start trading stocks’ here. The post will explain more about the importance of each and my tips on how to do them well
For my final tip today, it always pays to know how to manage your money and some simple stock investing rules that you should stick to. I cover these here right here in my 4 important money management and stock investing rules you NEED to know video on Youtube.
I hope this article has given you a simple overview of some of the tools and strategies available for you to use when it comes to working towards making a living trading stocks. When used together with each other, the decisions you make and tools you use when copy trading can really add up to a nice level of income.
You must however remember that when trading, success is never guaranteed and you need be patient while you learn how to build the level of financial rewards you want to achieve. This won’t happen overnight though – I’ve been trading for over ten years and am still learning new things all the time!
Finally, always do your homework before picking a stock to invest in so that you can choose stock that offers the best value and yield for your money. Research and review the portfolio of companies in order to determine where to invest your money and remember the importance of:
- Being able to identify and buy stocks with high dividend payments
- Using tools that systematically provide you with the best daily or weekly stock picks, and
- Learning how to copy trade to get the most from your time and money
- Knowing how to manage your money and the rules to invest by
If you’re looking for regular updates on what major copy trading platforms are doing, what works well and what doesn’t work so well, then please do subscribe to my mailing list. I keep my subscribers up to date on everything copy trading, EAs and bots as my personal experience of using the platforms I invest in evolves.
I am Jon Platts and via Trade Wise, I hope that by sharing my experience and reviews with investors like you that you can easily find trusted platforms where high returns can be achieved without making the same costly mistakes that I did when starting out!
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.