Call toll-free 800.328.1267

What You Need to Know About Trading Stocks and ETFs

May 13, 2020

Trading stocks requires you learn how to trade stocks, learn about the markets, learn what drives stock prices, and learn how to decide which stocks to buy and sell.

Experienced stock traders always have a plan before entering a trade. This plan includes how many shares to buy or sell, how much risk they are willing to take or how much money they are willing to lose on a single trade.

Understanding the stock or ETF you are looking to trade is key. How is the company doing? When is the next earnings report; has there recently been good or bad news; is any news expected? Always do a Google search and learn as much as you can before hitting that buy or sell button.

Finally, once you are in a trade, don’t drive yourself crazy watching the price action every five minutes throughout the day. Don’t over trade your account, only risk a small portion of your account on any one trade and don’t have so many positions on that you feel anxious. Enter and exit trades based on evidence and not emotions. Losing trades are part of trading. If you learn from the losses, they will make you a better trader in the long run.

Discover the advantages of trading Stocks & ETFs with TradeStation

See also

Introduction to Day Trading

Introduction to Day Trading

Market BasicsStocks & ETFsDay trading refers to buying then selling or selling short then buying the same security on the same day. Just purchasing a security, without selling it later that same day, would not be considered a day trade. Does the rule...

read more
Introduction to Day Trading

Day Trading Requirements

Market BasicsStocks & ETFsThe rules adopt the term “pattern day trader,” which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days. Under...

read more
Introduction to Day Trading

Why Day Trading Margin Requirements are Important

Market BasicsStocks & ETFsThe primary purpose of the day-trading margin rules is to require that certain levels of equity be deposited and maintained in the margin accounts of Day Traders, and that these levels be sufficient to support the risks...

read more