Step One: Start saving.

You want a big enough nut that you can drop 10-15% in a day and it won't hurt you too much. It can hurt your feelings, it can hurt your pride, but it shouldn't hurt your bottom line.

Step Two: Start Planning.

What kind of trader do you want to be? A Day Trader or a long term trader? A Day Trader works the market every day and requires more research, more monitoring of the market, more hands on supervision of your portfolio or account. A swing trader can take a longer view in an attempt to gauge the direction of the market.

Step Three: Open an Account

You want a direct access brokerage with Level II platforms that are easy for you to understand.

Step Four: Learn the Language

You have to know what you're asking for and when you listen to the talking heads sharing their opinions on CNBC you want to know what they're talking about. Can you Put the Call when you go Long on a Short Stock? Huh? Learn what the terms mean so you can know how to apply it to your trading plan. Try getting a CFD ebook help.

Step Five: Pick Your Stock

Your first trade is the most important, but if you lose money, don't panic. There is a learning curve to trading and until you can read a chart, read the mood of the market and recognize how to play, just stick to your plan with a set entrance and exit strategy.

Step Six: Insure Your Portfolio

Set a profit goal and a loss goal and place orders for both. If the stock price drops, your stop loss will save your nut. If you put in a profit cap, greed won't take over and keep you in the order too long.

Step Seven: Plan Your Day

A lot of traders do the AM and PM trades or even work after hours trading. For each trade, you have to think of it like a heist. Get in, get paid and get out. Or get in, get lost, and get out. Either way you've got a set strategy to follow and you will make a profit or loss on each trade. Limit your losses and have more profits than losses and you're a successful trader. Drop ten percent of your nut every day for five days and you need to rethink your investing strategy.

Step Eight: Get Addicted to Learning and the News

Day trading can be one of the most financially rewarding careers but you can't do it in half measures. You can do it part time, or full time, but you cannot go into it thinking you're going to turn $5000 into $33 Million in 3 Years without putting in the time and effort to study and learn. Stock trading is like any job, sport or hobby. You have to train, you must practice and it helps if you have a good coach or mentor who can give you great advice to help you win.

Step Nine: Have Fun

Why do the majority of traders look miserable? Stock trading can be a great way to make money but you have to learn to read human behavior. You cannot control the market, ever. What you have control over is how you read the market, how much homework you do to reach your goals. If you're not having fun, then it's time to look for another line of work.

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Note: This article was originally published on August 08, 2009.