10 Good Habits to Implement to Become a Better Trader

Success in trading isn’t just about strategy—it’s about discipline, consistency, and the right habits. The best traders aren’t necessarily the ones who make the biggest trades but the ones who develop habits that keep them in the game long-term. Whether you’re a beginner or an experienced trader, implementing these ten habits can help you improve your decision-making, manage risk, and maximize profits.

1. Follow a Trading Plan

A solid trading plan acts as your roadmap. It should outline your strategy, risk tolerance, entry and exit points, and overall goals. Following a structured plan keeps emotions in check and prevents impulsive decisions that could lead to losses. A good trading plan should also be flexible enough to adapt to market changes while still maintaining a disciplined approach. Regularly reviewing and updating your plan ensures it stays relevant and effective in different market conditions.

2. Practice Risk Management

Never risk more than you can afford to lose. A common rule is the 1-2% risk rule, meaning you should only risk 1-2% of your account on a single trade. Stop-loss orders and proper position sizing are essential tools for managing risk effectively. Additionally, diversification can help mitigate risks by spreading investments across multiple assets instead of focusing on a single trade. Proper risk management protects your capital and allows you to stay in the market for the long run.

3. Maintain a Trading Journal

A trading journal helps you track your trades, analyze your successes and mistakes, and refine your strategy. By reviewing past trades, you can identify patterns, strengths, and weaknesses to improve future performance. Documenting your emotions, market conditions, and the reasoning behind each trade can provide valuable insights into your decision-making process. Over time, a well-maintained trading journal will serve as a powerful learning tool that helps you refine your approach and eliminate costly mistakes.

4. Stay Disciplined and Avoid Overtrading

Emotional trading leads to costly mistakes. Stick to your trading plan and avoid revenge trading or overtrading just because the market is moving. Patience and discipline separate profitable traders from those who consistently lose. Overtrading often stems from greed or fear, which can lead to impulsive decisions and unnecessary risks. Setting daily or weekly trading limits can help maintain discipline and prevent excessive trading.

5. Continuously Educate Yourself

Markets evolve, and staying informed is crucial. Follow market news, read trading books, take courses, and learn from successful traders. The more knowledge you acquire, the better equipped you’ll be to adapt to changing market conditions. Subscribing to financial news outlets, joining trading communities, and attending webinars can provide fresh insights and strategies. Additionally, studying different market indicators and economic reports can help you make more informed trading decisions.

6. Develop a Routine and Stick to It

Having a structured daily routine keeps you focused and prevents burnout. Set a specific time to analyze the markets, execute trades, and review performance. Consistency breeds success. A well-organized routine helps in maintaining a balanced lifestyle and prevents emotional fatigue. Creating a checklist for each trading session can ensure that you stay on track and approach the markets with a clear mindset.

7. Use Proper Risk-to-Reward Ratios

A good risk-to-reward ratio helps ensure long-term profitability. A common approach is aiming for at least a 1:2 or 1:3 risk-to-reward ratio, meaning you aim to gain twice or three times what you’re risking per trade. This strategy helps maintain a favorable profit-to-loss balance and ensures that even if some trades result in losses, the profitable trades will outweigh them. Traders who consistently follow a strong risk-to-reward strategy are more likely to achieve sustainable success.

8. Stay Emotionally Detached from Trades

Trading is a game of probabilities—sometimes, even the best setups fail. Accept losses as part of the process and move on. Letting emotions drive your decisions leads to poor risk management and bad trades. Developing a mindset that treats trading as a business rather than a game of luck is crucial. Practicing mindfulness and stress management techniques can help traders maintain emotional stability and avoid making impulsive decisions.

9. Backtest and Optimize Your Strategy

Before going live with a strategy, test it on historical data to see how it performs. Backtesting helps refine your approach and gives you confidence in your trading decisions. This process allows traders to identify strengths and weaknesses in their strategies before risking real capital. Many trading platforms offer backtesting tools that can simulate market conditions and provide performance statistics. Regular optimization of trading strategies ensures they remain effective in different market environments.

10. Take Breaks and Manage Stress

Trading can be mentally exhausting. Taking breaks prevents burnout and helps you maintain a clear mindset. Step away from the charts when needed, exercise, and ensure you’re well-rested to make the best decisions. Stress and fatigue can cloud judgment and lead to poor trading choices. Engaging in hobbies, spending time with family, and practicing relaxation techniques can contribute to a healthier trading mindset. A well-balanced lifestyle supports better decision-making and enhances overall trading performance.

Final Thoughts

Great traders aren’t born overnight; they are built through habits, discipline, and continuous improvement. Implementing these ten habits will help you become a more consistent, profitable, and confident trader over time. Stick to your plan, manage risk wisely, and never stop learning. By making these habits part of your daily trading routine, you’ll set yourself up for long-term success in the financial markets.

Best charting software: TradingView

Best Trading Journal:
Tradezella

Best Trading Scanner:
Trade IDEAS

BEST PROP FIRMS:
APEX TRADER FUNDING (ENTER BOB FOR BEST DISCOUNT)

Best Prop Firms:
MyFundedFutures (enter break for best discount)

bEST pROP firms W/ NO EVALUATION:
Tradeify

How to Start Trading with Just $100

Many people believe that trading requires a huge bankroll, but that’s simply not true. With just $100, you can start trading and gradually grow your account over time. Thanks to recent changes in the settlement period (now T+1 instead of T+2), you can trade every day with a cash account. Here’s how:

1. Trade with a Cash Account

Since the settlement period for trades has been reduced to one day, you can use a cash account to trade daily with your $100. This allows you to stay active in the market without the need for a margin account or pattern day trading restrictions. Unlike margin accounts, cash accounts ensure that you are only trading with the money you actually have, reducing the risk of overleveraging and accumulating debt.

2. Focus on Small-Cap Stocks Under $10

With a limited budget, it’s best to focus on stocks priced under $10. This way, you can buy more shares and take advantage of small price movements. Small-cap stocks often have higher volatility, creating opportunities for quick gains. Research is key—look for companies with a strong chart setup, good technical indicators, and positive news catalysts. Keep an eye on liquidity and volume so you can enter and exit trades efficiently. To ensure you’re picking the right small cap stock to trade, I recommend Trade Ideas - a scanner that tells you in real time which of these stocks is gapping up.

3. Pick a Commission-Free Broker

Since your capital is limited, avoiding commissions is crucial. Here are some popular commission-free brokers:

• Webull – Commission-free trading with extended market hours and advanced charting features.

• Fidelity – Offers great execution and commission-free trades with a strong research platform.

• TD Ameritrade – No commissions and a variety of trading tools, including ThinkorSwim.

• E*TRADE – Provides commission-free trades with excellent customer support and educational resources.

4. Use a Simple Trading Strategy

With limited funds, a smart strategy is key. Consider:

• Swing Trading: Holding trades for a few days to capture market moves based on technical indicators.

• Day Trading: Entering and exiting trades within the same day to minimize overnight risk. Focus on high-volume stocks and set clear stop-loss levels.

• Trend Following: Identifying and trading in the direction of market trends, using moving averages and momentum indicators.

• Breakout Trading: Buying stocks that break through resistance levels on high volume, signaling a potential price surge.

5. Manage Risk Like a Pro

Protect your small account by following these risk management tips:

• Risk no more than 1-2% of your capital per trade to prevent large losses.

• Use stop-loss orders to exit losing trades quickly and protect your capital.

• Avoid emotional trading; stick to your plan and don’t chase losses.

• Diversify your trades rather than putting all your capital into a single stock.

• Keep a trading journal to track your trades, strategies, and lessons learned.

6. Take Advantage of Demo Accounts

Before trading real money, practice on a demo account. This helps you get comfortable with the platform and refine your strategy without financial risk. Demo trading also allows you to test different strategies and build confidence before committing real capital.

7. Follow Market Trends and News

Staying informed is crucial for making smart trading decisions. Follow financial news outlets, earnings reports, and economic indicators to anticipate market movements. Consider using platforms like Bloomberg, Yahoo Finance, and MarketWatch to stay updated on stock performance and breaking news.

8. Use Your $100 to Buy a Prop Firm Evaluation

Another great way to leverage your $100 is by using it to purchase a prop firm evaluation. Proprietary trading firms offer traders the opportunity to trade with significantly larger capital once they pass an evaluation process. One of the best options available right now is Apex Trader Funding, which provides access to funded accounts if you can prove your trading skills.

Apex Trader Funding is currently running a sale, allowing traders to get started with an evaluation for a discounted price. With my exclusive discount code BOB, you can get an even better deal. If you pass the evaluation, you’ll be able to trade with a much larger funded account, giving you more potential for profit than you would have with just your $100.

This is an excellent option for traders who have solid risk management skills and want access to more capital without putting their own money on the line.

9. Gradually Scale Up

The goal is to grow your account over time. Reinvest profits, continue learning, and maintain disciplined trading habits. Even a $100 account can turn into something bigger with patience and smart decision-making. Avoid withdrawing profits early and focus on compounding gains over time.

Final Thoughts

Starting with $100 might seem small, but with the right approach, it’s possible to build a solid foundation for trading success. Take advantage of the one-day settlement period, focus on small-cap stocks, use a commission-free broker, or consider purchasing a prop firm evaluation with Apex Trader Funding. Choose the right strategy, manage risk, and stay disciplined—your journey to profitable trading starts now!

The Beginner’s Guide to Trading: 10 Steps on How to Get Started from Scratch

Introduction: Why Trading?

• What is Trading?
  Explain the concept of trading: buying and selling assets like stocks, options, cryptocurrencies, or commodities in hopes of making a profit.

• Why People Trade:
  Touch on common reasons beginners get into trading (e.g., making extra money, building wealth, taking control of their financial future).

• The Risk and Reward:
  Highlight that while trading can be lucrative, it comes with risks. It's crucial to be prepared and informed.

1. Understanding the Basics of Trading

• What are Financial Markets?
  Explain what markets are (places where buyers and sellers meet) and provide examples like the stock market, forex market, or crypto market.

• Types of Assets You Can Trade:

  • Stocks: Owning shares of a company.

  • Options: Contracts that give the right to buy or sell a stock at a certain price within a period.

  • Cryptocurrency: Digital currencies like Bitcoin or Ethereum.

  • Forex (Foreign Exchange): Trading currencies (like USD/EUR).

  • Commodities: Things like gold, oil, agricultural products, etc.

2. Choose Your Trading Style

Explain the different types of trading styles, so beginners can decide what might fit them best:

• Day Trading:

  • Description: Buying and selling within the same trading day. Aimed at making profits from short-term price movements.

  • Pros/Cons: High potential for quick profits, but it’s time-intensive and high-risk.

• Swing Trading:

  • Description: Holding positions for a few days or weeks to capture short-to-medium-term trends.

  • Pros/Cons: Less stressful than day trading, but still requires regular monitoring of the markets.

• Long-Term Investing:

  • Description: Buying assets and holding them for months or years to benefit from long-term growth (ideal for stocks and ETFs).

  • Pros/Cons: Requires patience, but generally involves less stress and less frequent decision-making.

• Scalping:

  • Description: Making small profits from very short-term movements, typically in minutes.

  • Pros/Cons: Requires a lot of skill, fast decisions, and frequent trades, making it very stressful.

3. Learn the Lingo: Trading Terms Every Beginner Should Know

• Broker: The platform or intermediary through which you make trades.

• Spread: The difference between the buying and selling price of an asset.

• Leverage: Borrowing money to increase your position in a trade.

• Stop-Loss/Take-Profit: Automatic instructions to close your position at a certain level to minimize loss or lock in profits.

• Volatility: The degree of variation in an asset’s price; higher volatility can mean higher risk and reward.

• Bullish/Bearish:

  • Bullish: Expecting prices to go up.

  • Bearish: Expecting prices to go down.

4. Setting Up Your Trading Account

• Choose a Broker/Trading App:

  • What to Look For:

    • Commission-free trades (or low fees).

    • Security and regulation (check if the broker is regulated by authorities like the SEC in the U.S. or FCA in the UK).

    • User-friendly interface.

    • Access to the markets you’re interested in (stocks, crypto, etc.).

  • Popular Brokers for Beginners:

    • Webull (for stocks and ETFs).

    • Coinbase, Binance (for crypto).

    • Fidelity, Schwab (for a full-service experience with stocks, options, and ETFs).

• Fund Your Account:

  • Explain how to deposit funds into your trading account via bank transfer, credit card, or other methods.

  • Start small: Recommend starting with an amount you’re comfortable losing to reduce the risk of overexposure.

5. Create a Trading Plan

• Define Your Goals:

  • Are you looking for long-term growth, or do you want to make short-term profits?

  • Are you aiming for steady, modest returns or trying to maximize risk for higher rewards?

• Risk Management:

  • Use a Stop-Loss: Protect yourself from huge losses by setting a stop-loss order.

  • Risk Only What You Can Afford to Lose: A key principle to follow when you start.

• Keep Emotions in Check:

  • Explain how trading can be emotional (fear and greed). Discipline and a well-structured plan will help.

• Track Your Trades:

  • Keep a trading journal to learn from both your successes and failures.

6. Getting to Know Technical and Fundamental Analysis

• Fundamental Analysis:

  • Definition: The study of economic and financial factors to determine an asset’s value (e.g., looking at a company’s earnings reports or news about a cryptocurrency).

  • Example for Stocks: Analyzing a company's earnings, growth potential, and industry.

  • Example for Crypto: Studying the utility, adoption, and market news surrounding a cryptocurrency.

• Technical Analysis:

  • Definition: Analyzing price charts and using indicators (e.g., Moving Averages, Relative Strength Index, MACD) to predict future price movements.

  • Example for Stocks: Looking at stock price charts, volume, and patterns (e.g., support/resistance lines).

  • Example for Crypto: Using chart patterns and technical indicators to predict short-term trends.

7. Start Small and Build Up

• Paper Trading (Demo Accounts):
  Many platforms offer demo accounts where beginners can practice trading with virtual money. This helps build confidence without risking real capital.

• Start with Small Investments:

  • Emphasize starting small to minimize risk while learning the ropes. Gradually increase the amount you trade as you gain experience.

• Diversify Your Portfolio:
  Don’t put all your money into one asset. Spread out your risk across different types of investments (stocks, bonds, crypto, etc.).

8. Be Prepared to Learn and Adapt

• Stay Educated:

  • Books, Courses, and Blogs: Encourage them to learn continuously. Resources like “The Intelligent Investor” by Benjamin Graham, or free content from platforms like Investopedia, can be great starts.

• Follow the News:

  • Keep an eye on economic news, earnings reports, and global events, as they can influence the markets.

• Join Communities:

  • Engage with other traders through online forums, Reddit, Discord groups, and social media to learn from their experiences.

9. Common Mistakes to Avoid

• Overtrading: Trying to trade too frequently or with too much capital.

• Chasing Losses: Don’t try to make up for a loss by risking even more.

• Ignoring Risk Management: Not setting stop-losses or taking profits when needed.

• Following “Hot Tips”: Be wary of trading based on rumors or tips from unverified sources.

10. Conclusion: Embrace the Journey

• Patience and Practice: Remind readers that trading is a long-term skill that takes time to master. They won’t be successful overnight.

• Consistency is Key: Regularly practicing and refining strategies will lead to better decision-making and more consistent results.

• Start Your Journey Today: Encourage them to take their first steps cautiously, but excitedly, and stay dedicated to learning.

How to Pass a Prop Firm Challenge: A Proven Step-by-Step Guide for Aspiring Traders

If you’ve ever dreamt of trading professionally without risking your own capital, joining a prop firm is one of the best ways to turn that dream into a reality. But there's a catch: before you can trade with their money, you have to pass a challenge.

It’s not a walk in the park. But with the right approach, a clear strategy, and mental discipline, you can crack the code and get funded. This isn’t just about making money—it’s about proving you have the skills, discipline, and patience to trade professionally.

In this article, we’ll dive deep into the exact steps you need to take to pass a prop firm challenge, avoid common pitfalls, and set yourself up for long-term success.

What Is a Prop Firm Challenge?

A prop firm challenge is essentially a test that assesses your ability to manage capital and trade profitably under pressure. Prop firms like Apex Trader Funding, MyFundedFutures, and Trade Day offer traders the opportunity to trade with their capital—but only after you prove yourself through a series of objectives.

The challenge typically includes:

• Profit Target: For example, achieving a 10% profit in 30 days.

• Max Drawdown: You can’t lose more than 5% (or less) of the initial capital during the challenge.

• Daily Loss Limit: Often set at 1-2% per day to ensure you're not risking too much in one trade.

But passing this challenge is not just about being a good trader. It’s about mastering risk management, staying disciplined, and following the rules to the letter.

Step 1: Master the Prop Firm’s Rules and Requirements

Before you even think about opening a position, know the rules inside and out. The key difference between those who pass and fail is how well they follow the firm’s guidelines.

Key Things to Know:

1. Profit Target & Timeframe: You’ll usually have a set timeframe to hit a profit target—let’s say 10% over 30 days. Make sure you break this down: don’t try to hit the target all at once, and don’t rush it. You can take small, steady wins.

   • Example: If you're aiming for a 10% profit in 30 days, target a 0.33% return per day. This helps you avoid going for big wins that could blow up your account.

2. Max Drawdown: This is one of the most crucial rules. Exceeding the max drawdown (usually 5% of the starting capital) means you’ll fail the challenge. Never risk more than 1-2% on a single trade.

   • Example: On a $50,000 account, you can't lose more than $2,500. If you’re risking 1% per trade, that’s $500. This means you can take 5 losing trades in a row before you hit the max drawdown limit.

3. Daily Loss Limit: Most firms impose a daily loss limit of 1-2%. This means if you lose 1% in a day, you need to stop trading immediately. This forces you to maintain strict discipline.

   • Pro Tip: Set an alert or reminder on your phone so that you’re aware when you’re close to the daily loss limit.

Step 2: Develop a Specific, Repeatable Strategy

In the prop firm challenge, consistency is king. You’re not looking for home runs—you’re looking for steady, repeatable profits.

How to Build a Trading Strategy That Works for the Challenge:

1. Focus on 1-2 Trading Setups: Choose simple setups that you can repeat over and over. This could be a basic trend-following strategy, breakouts, or a scalping method. Don’t complicate things.

   • Example: A moving average crossover strategy (where a shorter-term moving average crosses above a longer-term moving average) can work well for swing trading. It's simple and gives you clear entry and exit signals.

2. Don’t Overtrade: Prop firms want to see that you can manage risk. Overtrading—making too many trades, especially when the market doesn’t fit your setup—can be disastrous. If you’re not sure whether a setup is good, skip it.

   • Pro Tip: Set a limit for the number of trades per day, such as 3-5 trades. This helps keep you focused and reduces the chance of unnecessary losses.

3. Trade with the Trend: The safest way to trade is by aligning with the market's overall trend. Don’t fight it. For example, if the market is bullish, focus on buy setups, not shorts.

   • Example: In an uptrend, look for pullbacks to enter long positions rather than trying to sell short.

Step 3: Simulate the Challenge with a Demo Account

Before jumping into a real prop firm challenge, practice under realistic conditions. Use a demo account that mirrors the rules of the prop firm you want to join.

What to Do in the Demo:

• Replicate the Exact Rules: Set up your demo account with the same profit target, drawdown limits, and daily loss limits.

• Track Your Performance: Treat this as a dry run. Track your win rate, average risk-to-reward ratio, and how often you hit the max drawdown or daily loss limit.

• Test Your Risk Management: Set strict rules about how much you’re willing to risk per trade and practice sticking to them—this is crucial for success in the challenge.

Step 4: Cultivate Mental Discipline and Avoid Emotional Decisions

One of the biggest pitfalls traders face in prop firm challenges is emotional trading—making decisions based on fear, greed, or impatience. The key to success is learning how to control your emotions and stay mentally disciplined.

How to Stay Mentally Strong:

1. Use a Trading Journal: Keep track of every trade—why you took it, the outcome, and how you felt. This will help you identify patterns and improve.

   • Pro Tip: Write down your emotional state during trades (e.g., were you feeling nervous, overconfident, or frustrated?) so you can recognize emotional bias and correct it.

2. Set Realistic Expectations: Don’t expect to double your account overnight. In fact, small, consistent wins are often the key to passing the challenge. If you’re up 5-6% after two weeks, that’s great progress.

   • Pro Tip: Focus on hitting small daily targets rather than trying to reach your overall profit target too quickly. This prevents you from taking unnecessary risks.

3. Follow a Routine: Start and end your trading day at the same time. Have a set routine that includes pre-trade analysis, a break after each trade, and post-trade review. This structure helps keep your mind clear and reduces emotional decisions.

Step 5: Stick to the Challenge Rules—No Exceptions

The most important factor in passing the challenge is following the rules without exceptions. Prop firms are strict about the max drawdown, daily loss limits, and other parameters for a reason—they want to see that you can trade responsibly and consistently.

• If you hit your daily loss limit, don’t try to make it back with high-risk trades.

• If you’re near your profit target, don’t risk it all by making a “big bet” on one trade. Consistency is better than a big win.

Final Thoughts: Your Path to Becoming a Funded Trader

Passing a prop firm challenge is more than just a test of your trading knowledge. It’s about demonstrating that you can follow rules, manage risk, and stay disciplined.

Here’s a quick recap of how to succeed:

• Understand the firm’s rules and trade with them in mind.

• Develop a repeatable, low-risk strategy with clear entry and exit points.

• Practice rigorously on a demo account.

• Manage your emotions and stick to your plan—no exceptions.

• Stay patient and consistent; remember, the goal is steady profits, not home runs.

You don’t need to be a trading genius to pass a prop firm challenge, but you do need to be consistent, disciplined, and able to follow the rules. If you can do that, you’ll be well on your way to becoming a funded trader and turning your trading passion into a career.

Recommended Prop Firms:

Apex Trader Funding: Enter BOB for best deal available

MyFundedFutures: Enter BREAK for best deal available

Copy Trading for Prop Firms: A Beginner’s Guide to Maximizing Profits

If you're dipping your toes into the world of trading, you might have come across the term "copy trading" and wondered what it's all about. For traders working with a proprietary (prop) firm, copy trading can be a game-changer, allowing you to potentially 3x, 4x, or even 5x your profits. Let’s break it down step by step so you can understand the concept and see how lucrative it can be.

What Is a Prop Firm?

A proprietary trading firm, or prop firm, provides traders with access to significant capital to trade the financial markets. Instead of trading with your own money, a prop firm gives you a funded account, often after you pass an evaluation process. The firm takes on most of the financial risk while splitting the profits with you.

This setup is particularly attractive to skilled traders who may not have enough personal capital to trade at scale. However, to be consistently profitable with a prop firm, you need to master a solid trading strategy.

Why Mastering a Trading Strategy Is Key

Trading successfully with a prop firm requires discipline and a well-defined strategy. This isn’t just about luck; you need to:

• Understand the markets: Whether you trade forex, stocks, or commodities, understanding price action and market trends is essential.

• Backtest your strategies: Use historical data to see how your strategy would have performed in the past.

• Stick to risk management rules: Prop firms usually have strict drawdown limits, so keeping your risk per trade in check is crucial.

Once you’ve achieved consistent profitability, the real magic begins: scaling your earnings through copy trading.

What Is Copy Trading?

Copy trading allows you to replicate trades from one account to another automatically. For example, if you execute a trade on one account, the same trade is mirrored on multiple other accounts. This is where having multiple prop firm-funded accounts can multiply your profits significantly.

Imagine this:

• You have one prop firm account making $1,000 a month.

• By copying trades across three accounts, you could potentially make $3,000 a month.

• Scale it further to five accounts, and you’re looking at $5,000 a month, assuming consistent performance.

The best part? The effort remains the same since the trades are automated across all accounts.

Setting Up Copy Trading with TradingView

When it comes to charting and trade analysis, TradingView is one of the best tools in the market. It offers an intuitive interface, powerful charting capabilities, and access to a community of traders. Here’s how you can leverage TradingView to set up a trade copier:

1. Analyze Your Trades: TradingView’s charting tools allow you to identify trade opportunities with precision. You can use features like customizable indicators, drawing tools, and multi-timeframe analysis.

2. Automate Trade Execution: Once your strategy is solid, you can connect TradingView to third-party trade copier tools or brokers that support automation. TradingView's webhooks and alerts can trigger trades that get copied across all linked accounts.

3. Monitor Performance: With TradingView’s detailed analysis features, you can track how well your strategy is performing across multiple accounts and make adjustments as needed.

Why Use TradingView?

Even if you’re not using it for copy trading, TradingView is a fantastic platform for:

• Charting: Its clean interface and wide range of chart types make it a favorite among traders.

• Community Insights: Follow other traders, share ideas, and learn new strategies.

• Accessibility: TradingView works seamlessly across devices, so you can stay on top of your trades anywhere.

Final Thoughts

Copy trading for prop firms is an excellent way to maximize your earnings once you’ve mastered a trading strategy. By scaling your efforts across multiple accounts, you can significantly increase your profits without additional workload.

Using a reliable platform like TradingView makes the process even smoother. Whether it’s analyzing charts or setting up automated trade copiers, TradingView equips you with the tools you need to succeed.

Ready to take your trading to the next level? Start small, refine your strategy, and explore the power of copy trading—your future self will thank you!

10 Ways You Can Make Money in the Stock Market

Investing in the stock market can be a rewarding way to grow your wealth over time. However, it requires strategy, patience, and knowledge to maximize returns. Here are 10 specific and detailed ways you can make money in the stock market:

1. Dividend Investing

Dividend-paying stocks provide a steady income stream in addition to potential capital appreciation. Look for companies with a history of consistent and growing dividend payouts. Dividend Aristocrats, companies that have increased their dividends for 25 consecutive years or more, are often a good starting point.

2. Growth Investing

This strategy focuses on companies expected to grow at an above-average rate compared to their industry or the overall market. Growth stocks typically reinvest earnings into the business rather than paying dividends, making them ideal for long-term capital gains. Popular sectors include technology, biotech, and renewable energy.

3. Value Investing

Value investors seek stocks trading below their intrinsic value. This involves identifying companies that the market has undervalued due to temporary challenges or market sentiment. Tools like the price-to-earnings (P/E) ratio and price-to-book (P/B) ratio can help uncover undervalued opportunities.

4. Index Fund Investing

Index funds track the performance of a market index, such as the S&P 500. They offer diversification, lower fees, and long-term growth potential. Investing in index funds is a passive approach that requires minimal effort but can yield solid returns over time.

5. Swing Trading

Swing trading involves taking advantage of short- to medium-term price movements. Traders use technical analysis and market trends to predict price changes. This strategy requires active management and a good understanding of market indicators like moving averages and relative strength index (RSI).

Best charting software: TradingView

Best Trading Journal:
Tradezella

Best Trading Scanner:
Trade IDEAS

BEST PROP FIRMS:
APEX TRADER FUNDING (ENTER BOB FOR BEST DISCOUNT)

Best Prop Firms:
MyFundedFutures (enter break for best discount)

6. Day Trading

Day trading involves buying and selling stocks within the same trading day to capitalize on small price movements. It requires discipline, technical analysis skills, and the ability to act quickly. While it can be profitable, day trading carries higher risks and may not be suitable for beginners.

7. Investing in ETFs (Exchange-Traded Funds)

ETFs are similar to mutual funds but trade like stocks on an exchange. They offer exposure to a variety of assets, including stocks, bonds, and commodities, providing instant diversification. Sector-specific ETFs can be a great way to target industries poised for growth.

8. Options Trading

Options provide the right, but not the obligation, to buy or sell a stock at a specific price before a set date. Strategies like covered calls or cash-secured puts can generate income or hedge against downside risk. However, options trading requires advanced knowledge and risk management.

9. Investing in IPOs (Initial Public Offerings)

IPO investing involves buying shares of a company when it goes public. While IPOs can offer high returns if the company succeeds, they also carry significant risks due to limited operational history. Research the company's financials and industry prospects before investing.

10. Real Estate Investment Trusts (REITs)

REITs allow you to invest in real estate without owning physical property. They generate income through rents or property sales and are required to distribute at least 90% of taxable income to shareholders as dividends. REITs provide a way to diversify your portfolio and earn passive income from real estate.

Bonus Tips for Stock Market Success

• Diversify Your Portfolio: Avoid putting all your money into a single stock or sector.

• Stay Educated: Continuously learn about market trends, financial analysis, and economic factors.

• Manage Risk: Use stop-loss orders and position sizing to protect your investments.

• Be Patient: Successful investing often requires a long-term perspective.

By leveraging these strategies, you can create a tailored approach to achieve your financial goals in the stock market. Remember, all investments carry risk, so do your due diligence and consult with financial advisors when necessary.

How to Read a Stock Chart in 5 Easy Steps

Understanding how to read a stock chart is one of the most fundamental skills every trader or investor needs to master. Whether you're planning to trade short-term or invest long-term, knowing how to interpret stock charts is essential for making informed decisions. In this guide, we'll break down how to read a stock chart in 5 easy steps, even if you're a complete beginner. Plus, we'll show you how you can use TradingView—one of the most popular and user-friendly charting platforms—to help you in your analysis.

Step 1: Understand the Basic Components of a Stock Chart

Before diving into the details, it's important to understand what a stock chart is showing you. A stock chart displays a visual representation of a stock's price over a specific period of time. The basic components you'll see on most stock charts are:

• Price Axis (Y-Axis): The vertical axis on the right side of the chart. It shows the stock's price range. This could be anything from a few dollars to hundreds or even thousands, depending on the stock.

• Time Axis (X-Axis): The horizontal axis at the bottom. This shows the time frame for the chart, such as 1 day, 1 week, 1 month, or 1 year.

• Candlesticks: These are the colored bars or "candles" you see on the chart, representing the stock's price movements over a set time period (e.g., 1 minute, 1 hour, 1 day).

Using TradingView:
On TradingView, these components are displayed clearly and can be customized easily. You can select the time frame that fits your strategy (1 minute, daily, weekly, etc.) and zoom in or out on the price axis for a closer look. TradingView also offers multiple chart types—candlestick charts, bar charts, line charts—so you can choose the one you’re most comfortable with. Candlesticks are the most popular for traders, as they show detailed price movement over each time interval.

Step 2: Learn to Read Candlesticks

Candlesticks are the building blocks of most stock charts. Each candle provides information about the stock's price movement for a given period. Here’s how to read them:

• Open: The price of the stock when the time period begins.

• Close: The price of the stock when the time period ends.

• High: The highest price the stock reached during that period.

• Low: The lowest price the stock reached during that period.

The candlestick is typically colored to show whether the price went up or down during that period:

• Green Candlesticks: These indicate the stock closed higher than where it opened. This is considered a bullish sign (price is rising).

• Red Candlesticks: These indicate the stock closed lower than where it opened. This is considered a bearish sign (price is falling).

Using TradingView:
TradingView makes it easy to spot and interpret candlesticks with its intuitive interface. When you pull up a stock chart, TradingView automatically displays candlesticks for each time period you select. By hovering your mouse over a candle, you’ll see details like the open, close, high, and low prices for that specific time period. Plus, you can toggle between different chart views, like Heikin-Ashi candles, which are great for smoothing out price action to make trends easier to spot.

Step 3: Identify Support and Resistance Levels

Support and resistance are key concepts in chart analysis that can help you determine where prices might stop or reverse direction.

• Support: This is the price level where a stock tends to find buying interest, preventing the price from falling further. Think of it as the "floor" for the stock price.

• Resistance: This is the price level where the stock tends to encounter selling pressure, preventing the price from rising further. It acts like the "ceiling."

You can identify support and resistance levels by looking for price points where the stock has bounced up from (support) or fallen from (resistance) multiple times.

Using TradingView:
On TradingView, you can easily draw support and resistance lines using the platform’s drawing tools. Simply click on the line tool and drag it across the chart at the price levels you identify as key support or resistance zones. TradingView even has an auto trendline tool, which automatically plots trendlines to help you visually track price movements and major levels. These tools are especially helpful for pinpointing where the price is likely to reverse.

Step 4: Recognize Patterns and Trends

Stock charts often form specific patterns over time that can give you clues about the future direction of the stock's price. The most common types of patterns you’ll encounter are:

• Uptrend: A series of higher highs and higher lows. This suggests the stock is in a bullish phase (rising).

• Downtrend: A series of lower highs and lower lows. This suggests the stock is in a bearish phase (falling).

• Sideways Trend: When the stock price moves within a defined range. This indicates the stock is neither trending up nor down and is consolidating.

Additionally, there are specific chart patterns like Head and Shoulders, Triangles, and Double Tops/Bottoms that traders use to predict potential reversals or continuations in price movement.

Using TradingView:
On TradingView, spotting trends and patterns is simple. The platform allows you to zoom in on any section of the chart and easily spot trends, from short-term fluctuations to long-term movements. TradingView also provides a wide array of indicators and drawing tools that help highlight patterns like triangles, channels, or the popular head and shouldersformations. You can save your chart setups and patterns for easy reference, and TradingView even offers pattern recognition tools that automatically detect certain formations for you!

Step 5: Use Technical Indicators to Confirm Your Analysis

While candlestick patterns and support/resistance levels can provide a lot of insight, technical indicators can add additional layers of confirmation. These are mathematical calculations based on the stock's price, volume, or open interest, and they help traders predict future price movements. Some popular technical indicators include:

• Moving Averages: These smooth out price data to identify the direction of the trend. A simple moving average (SMA) or exponential moving average (EMA) is often used to gauge whether a stock is in an uptrend or downtrend.

• Relative Strength Index (RSI): This indicator helps you determine whether a stock is overbought or oversold. An RSI above 70 indicates the stock might be overbought (potential sell signal), while an RSI below 30 suggests it might be oversold (potential buy signal).

• MACD (Moving Average Convergence Divergence): This is a momentum indicator that helps traders spot trend reversals by comparing the difference between short- and long-term moving averages.

Using TradingView:
One of the biggest advantages of TradingView is the wide range of technical indicators available at your fingertips. You can apply various indicators to your chart with just a few clicks. Whether you’re using RSI, MACD, or Bollinger Bands, you can customize the settings for each indicator to suit your strategy. TradingView also offers real-time data and backtesting features, which allow you to test your indicators and strategies before applying them to live trades. Plus, the Indicator Library includes thousands of public and custom indicators created by the TradingView community, so you can discover new ways to analyze charts.

Conclusion

Reading a stock chart may seem intimidating at first, but once you break it down into simple steps, it becomes much easier. Start by familiarizing yourself with the basic chart components, then learn how to read candlesticks, identify support and resistance levels, recognize trends and patterns, and finally, use technical indicators to confirm your analysis.

With TradingView, you can seamlessly implement all these steps using powerful tools and resources to improve your charting skills. Whether you're a beginner or an experienced trader, TradingView makes it easy to track price movements, draw key levels, and apply indicators to make informed decisions.

Happy trading, and remember that the key to success in the markets is continuous learning and practice!

Why Trading and Investing are so Fundamentally Different

There is a popular misconception that trading and investing could be used interchangeably with one another. But as professional traders and investors can attest to, they are both radically different. It’s easy to mix the terms when both activities share the same objective: make money in the stock market.

But their opposite approaches to achieve that objective is what makes them so distinct. To put it in its simplest form, traders trade tickers and investors invest in companies. Let’s break this phrase down in more detail by focusing on three main concepts associated with each activity.

1. Primary Philosophy
Although investors could sometimes bleed into what a trader does and traders could bleed into what an investor does, the main philosophy to take away is one is purely based off fundamentals and the other is based on technicals.

Investors primarily look at the stock market from a fundamental standpoint. When choosing a stock, investors are entirely invested in what a company does and will continue to do. They care more about the bottom line. They look at a company’s financial reports which consist of balance sheets, income statements, cash flow statements, and various other required documents that the company has to disclose to their shareholders.

These reports give shareholders a look at a company’s debt relative to their overall cash flow, their market share compared to their competitors, their growth and projections, and most importantly, how much profit they’re bringing in. These are all things investors care about. They’re thoroughly listening to a company’s conference call during earnings season, the amount of dividend they’ll pay out for the quarter, and any other relevant information an investor would need at hand to decide if they’re willing to buy the company’s stock.

Traders primarily look at the stock market from a technical standpoint. They use various tools that most likely an investor would not. One of those tools is a stock scanner. This is a vital tool that helps traders find their stocks at any given moment by filtering specific settings to their liking. It’ll allow them to choose any stock whether it’s gapping up or down, is a small or large cap, has high or low volume,  or has a high or low float. This is all technical jargon you probably wouldn’t find an investor searching for. The point is that traders are looking for these big swings in price fluctuations to make a potential profit and these filters within the stock scanner can help them find that.

While investors are viewing a company’s financial reports, traders are vigorously viewing a company’s stock chart. And within that chart, traders have many study indicators they use at their disposal to figure out entries and exits. These study indicators could be tools like moving averages to assess whether a stock’s trend is bullish or bearish or a relative strength index (RSI) to determine whether that stock is oversold or overbought.

But before traders even trade a stock, they are watching for certain patterns within that chart. Every trader has a strategy and they’re looking to see if they can find a pattern that falls within their strategy. Traders then look for validated levels of support and resistance. They evaluate a myriad of other factors like the spread between the bid and the ask on the level 2, the kind of transaction going through on the time & sales, and the type of candlestick they’re about to buy into. All of these tools are specifically important for a day trader. More on that later.

2. Duration
As any sound investor can tell you, never try to time the market. Investors are not interested in paying attention to daily price movements or even weekly price movements for that matter like traders are. They’re not paying attention to market volatility as much as a trader. They’re outlook is substantially longer-term than a trader’s. And that outlook could be at least 5 years and certainly greater than a year. Timing the market is a fool’s errand for an investor.

For a trader, however, timing the market is everything. They’re looking to buy low and sell high (or buy high and sell low if they’re shorting) multiple times by taking advantage of these price fluctuations where as an investor would typically not care and just sit back. In other words, a trader will buy a stock short to mid-term where as an investor will buy a stock for the long-term.

It’s also important to distinguish the kind of trader a person is. A day trader will buy and sell a stock on that same day within hours, minutes, or even seconds. And a swing trader will hold a stock for at least a day.

3. Skill Level
Spending more time in the market naturally will expose you to more level of risk. A trader’s time in the market can be significantly longer than an investor’s in terms of buying and selling and therefore require a bit more skill level to be successful in making money.

A trader has to cut losses more quickly where as an investor can wait for the company to bounce back if they hit a roadblock as long as their status remains intact.

Each of these activities require a different kind of mindset as well. Investors need to have some level of belief or intuition in a company that they’re buying. A trader’s approach is a little less emotional. In fact, their decisions should all be based on logic when analyzing the technical setup of a stock.

Final Thoughts
Regardless of how you approach the stock market, extensive research is undoubtedly required. A trader must check off a multitude of technical conditions to see if a stock is worth trading. And an investor has to study the ins and outs of a company to see if their financial philosophy and overall product or service is sustainable for long-term growth.