Stock trading is an exciting and satisfying hobby that, for those who put in the effort to study and practise, may result in big rewards. While many people begin trading stocks with only the most basic of equipment and information, those who are serious about success in the stock market must constantly upgrade their skills. In this blog post, we’ll look at some of the most cutting-edge trading strategies that can help you advance your stock trading.
















Level II Data:

When you begin investing seriously, having the appropriate information will be crucial. A sort of financial data known as level 2 market data offers comprehensive details about the trading activities of a stock or investment. Basic details regarding the current bid and ask prices as well as the most recent traded price are all that Level 1 data offers. On the other hand, level 2 data offers up-to-the-minute information on the offers and demands for a certain security as well as the current market depth.

Market depth is the quantity of orders placed for a security at various price levels. Traders and investors can observe the total number of shares available at various price levels as well as the number of buyers and sellers in the market thanks to Level 2 data, which offers this information in real-time. Making intelligent trading decisions, such as when to buy or sell a specific security, can benefit from this information.

Buying the Right Way:

One thing you’ll want to stay away from is letting your broker determine the buying price. This indicates that you are doing it incorrectly if you are only selecting a few shares and pressing Buy.

Set your price with a Limit Order

You can specify the highest price you are willing to pay for a stock with a limit order. Let me elaborate on why this is so crucial. The stock’s current price does not always indicate that there are always shares available for purchase at that price. There might be just one. If you simply stated that you wished to purchase 1,000 or even just 100 shares of stock, this is a significant issue. So let’s contrast two situations.

Scenario 1:

You’ve located a stock and are prepared to invest. The price of the stock is $5, and you have $500 to spend. You choose to let the broker dermine the price, so you enter a purchase order for 100 shares and click the buy button. Soon after, you realise you don’t have 100 shares. What took place?

Initial Investment

3% Daily Income

Total Earned In 1 Year*

​$500

$15

$2250

$1000

$30

$4500

$4500

$135

​$20,250

After you bought your stock, there was a brief, modest price increase on the market. Your broker purchased as many shares, up to 100, at the current market price. You ended up paying an average of $5.20 per share due to the price increase. Even if the price is greater than when you pushed buy, it is now $5.10 after the hiccup, therefore you have already lost money. Luckily, it keeps going up and closes the day at $5.20. You sign off, prepared to try once more later.

Scenario 2:

You’ve located a stock and are prepared to purchase. The stock price is $5, and you start out with $500. You make the decision to place a limit order to purchase 100 shares at a price of $5 or less. The stock has a brief boom, followed by a brief dip. On your stocks, you ultimately spent an average of $4.95. As a result, you now have 100 stocks and some extra cash. Price settles at $5.20 after a little decline, and you sell. You got $15 from this small difference since you purchased 100 shares. When you consider that it represents a 3% gain, it looks trivial.

Let’s take a look at how much a 3% trade could make you.

This description makes the assumption that you are trading every trading day (250) this year with a fully filled day trading account. It also presumes that you keep the revenue. Investing your money will result in a considerably higher annual income.

Selling the Right Way

You DO NOT want your broker to determine the selling price of your shares, much like when you purchase a stock. There is constantly a lot going on during the trading day, so failing to set a limit order could be a costly error. You can sell your stock with a limit order at a set price or higher. Don’t be slack with your trades; doing this correctly will significantly impact your returns.

Day Trading Without $25k

A full-fledged day trading account needs at least $25,000 to open. It will take some folks some time to save up for that. The good news is that you can start investing before you reach $25,000. You are permitted to execute three 3-day trades per five working days without raising any red flags. You won’t be able to day trade for 90 days if you are flagged. It’s not what you desire! Here is an example of what a 3% return would look like while you accumulate the funds necessary to open a full-fledged day trading account.

Initial Investment

3% Daily Income

Total Earned In 1 Year*

​$500

$15

$2250

$1000

$30

$4500

$4500

$135

​$20,250

This description is predicated on your catching all 150 permitted trading days this year and maintaining the gains. Your profits will increase significantly if you reincorporate your profits.

You may have realised that reaching $100k doesn’t have to be all that difficult now that you have seen the numbers. To learn when to buy and sell, you’ll need to practise. Don’t let one poor trade get you down. Consider what went wrong and learn from it. Make sure you adhere to all of your trading guidelines, then start hunting for new opportunities. Before long, you’ll be wondering why you put off starting.

Remember that you must pay taxes on this money after a successful year of investing. Your broker will provide a simple to use document for you to use.

You can now afford to take a vacation with money you didn’t make working a 9 to 5 since you are investing like a pro. Visit our pals at The Adventures of Bigfoot if you need suggestions, motivation, or travel advice.

Keep Learning:

Check out our reading list to keep your mind active! There are subjects on this list for all expertise levels. Choose a topic that appeals to you, then enjoy yourself with it. This list will provide you the options that are best for you, whether you like to read a paper copy by the lake or take an audio book with you to work.











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