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If you are looking for a way to make full-time or part-time income from home then trading stocks just might be the best home-based business you can start. In this article I'm going to show you why trading stocks as a home-based business makes sense.
It's easier than you think to start trading stocks from home. All you need is fast computer and an online brokerage account to get up and running. Today you can open a trading account with a couple a hundred dollars so there is a small investment of capital to get you started trading. And,
online brokerage account trading fees are lower today than ever before.
Most online brokers also have free tutorials so you can learn the basics or even advanced trading techniques. You don't have to pay for additional education. You can even trade on their demo accounts to try out their system before you open an account.
There is a much lower overhead to trading stocks online than with most home-based businesses. You don't need a fancy, expensive web site. You don't need to pay for advertising to entice people to buy your products. However, like other home-based businesses almost all of your expenses may be tax deductible.
Researching stocks and getting stock charts to track your stocks or find good stocks can be done online with many free resources, like yahoo finance or big charts.
Working from home trading stocks has all the benefits of other home-based businesses except you don't have to sell anything to anyone and you don't have to deal with customers. You have no boss. You can work in your pajamas. You can trade 24/7. And there is unlimited upside potential if you plan your trades well and use proper money management skills. As with any business there is risk but if you enter into stock trading as a business you can work smart to limit those risks so that your profit outweighs your losses.
Today, you don't have to spend thousands of dollars to make money trading stocks online. You can use a small amount of capital and purchase microcap stocks, options or even trade the forex for very little outlay of capital. Microcap stocks can be bought usually for under a dollar and when they move they can dramatically increase your trading account. Nutrisystem Inc. is a name everyone knows. But few people know that it was trading well under the radar at a little over a dollar at first, then in a very short time it skyrocketed giving it's early investors a 3600% gain and ended up making many people very, very wealthy. And there are many, many more microcap stocks trading every day for similar gains.
There are also many stock trading systems today to help you jump start your trading business. They may cost you some money to learn or use but that is a business expense and should be looked at as a tool to make your trading easier and smarter. Once you learn how others are doing it you can set up your own trading system and using proper money management you can eventually run your business on autopilot.
Some of my friends ask me: "Matt, what are the best penny stocks to buy right now, in 2010?"
I have to give pause every time someone new asks me that, simply due to one simple rule that I hold near and dear to my heart and to my trading account: Penny stocks are not long term investments. I know when people ask me that they are dreaming of nailing a scrappy startup company's stock at $1 a share and holding it for 5 years, then selling their shares for $500 each and making a million bucks or something crazy like that.
I don't always feel like telling them the whole deal that I am about to share with you, so you are benefiting yourself by learning the following lesson described in the rest of this article.
Listen folks, penny stocks are absolutely awesome for trading. I said trading -- not investing. There is just too many whipsaws in these types of microcap equities (fancy word for stocks). Now when I say trading, I don't mean locking yourself in your bedroom in front of the computer every minute the stock market is open.
Rather I am referring to a manageable approach to trading, that is doable even for people who have demanding jobs that prevent them from having access to a computer during the day. It's a system of identifying a promising pick, buying it, and waiting for it to hit a designated exit point. It's really very simple. It does not completely eliminate the risk of trading penny stocks but it helps to minimize it since you are not blindly buying a penny stock and then holding it for a long time regardless of what it does.
For instance, if you buy a penny stock and identify an area where you would like to sell for a profit, you sell it when it reaches that level, be it at 50% or 500% profit levels. On the flip side, you can buy a stock and define an area where you will sell if it drops to certain level. That way you cut your losses before you potentially lose your entire investment.Look, if you want to go out and buy some blue chip stock like GE or a tech giant like GOOG that's fine and you will likely do well over the course of 2010 and beyond. Just don't adopt that mentality for any microcap (penny) stock. I have seen too many people have their trading accounts wiped out because they believed a hyped up story of a microcap stock that was too good to be true.
If you would like to get 3 free penny stock recommendations with a smart plan to trade them like I described, you can visit microcapmillionaires.com and sign up there. We have nailed huge moves in cheap stocks and we don't plan on stopping any time soon. 2009 was an awesome year for our subscribers, 2010 will be better.
Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks.
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