7 Things No-One Tells You About Online Trading

The world of online trading can be full of hype and false promises…

The market can be an ugly place — and it can be a draw for scammers, fake traders, and a slew of people who want to sell you on crazy, unrealistic trading success.

Today, I’m diving into the harsh realities of the trading life and pulling no punches.

Strap in and let’s get into some serious online trading talk…

What Is Online Trading?

Here’s a quick overview of online trading…

When you trade stocks, you need to trade through a stockbroker. Back before the days of the internet, this involved calling the broker on the phone or visiting the broker’s office.

Now, you can trade online, through an online brokerage platform.

So trading online just means buying and selling stocks via the internet. You can do it all through your computer. It’s just a few quick, easy clicks of your mouse to execute a trade.

The History of Online Trading

Online trading really took off at the dawn of the internet age, back in the mid to late 90s.

Before the internet, traditional stockbrokers would charge huge fees. It was also hard to get live price quotes and analysis. People working around the markets really had a HUGE advantage — they were closer to the action and knew more about what was happening. And they could execute trades quickly.

For the retail trader, trading would involve calling a broker to place an order. Then that trader would have to wait while the broker called someone on the trading floor to fill the order. It meant a lot of waiting around and hoping that orders were filled on time. And, frankly, a lot of traders would resent the brokers for charging so much for the transactions.

As stock exchanges became electronically accessible for traders and more people started using the internet, brokerage firms were able to streamline the process. Traders could quickly trade with a few button clicks.

Online brokerages helped make trading cheaper and faster for the retail trader, and it really opened up the trading world for the everyday person.

If you’re just getting started in the markets today, you can thank your lucky stars that everything is so accessible.

The Best Online Stock Trading Software

There are a handful of things you need to succeed in trading these days…

… trading capital, a brokerage account, and stock trading software…

Of course, a solid, tested trading strategy is smart to have, too.

Stock trading software, also called a trading platform, can act as a command center for your trading business. These platforms often include charts, quotes, news feeds, and order entry features to help you execute your trades.

Now, there are a lot of trading platforms out there, but they’re not all equal.

I’ll admit I’m biased … but I think that StocksToTrade is the greatest platform for active traders of U.S. stocks.

I got to work with an incredible team to help build StocksToTrade. And the platform has the benefit of the knowledge of several long-time traders. We really understand what traders need. And we specifically built the platform to help make our trading days more streamlined.

On StocksToTrade you’ll find elegant charting, access to all the major U.S. exchanges, ultra-powerful stock scanning tools, and even a proprietary trading algorithm to help you find great trade setups.

I could go on and on about the awesome, useful features that are built right into StocksToTrade. But here’s what I think is better: check it out for yourself. Get your 14-day trial of StocksToTrade for just $7. See just how great it is for yourself.

7 Things No One Tells You About Online Trading

The trading industry is full of overblown marketers who tell like to say how amazing and easy it is to be a trader — all you have to do is buy their course. Don’t buy into it.

If you’ve read any of my other posts or seen me on YouTube or social media, you know I’m a straight talker. I’m all about hard work and achieving results.

That said, here are 7 no-hype truths about being a trader…

It’s Hard

No matter what anyone tells you, learning to trade is a tough journey.

You have to be your own master every day, from the beginning of your journey. No one will stand over you and make you do the work.

Learning to trade requires learning a ton: which stocks to trade, which setups to take, how to manage risk, how to use your trading platform … plus taking wins and losses as you climb the trading skills ladder.

It Requires Patience

Becoming a doctor requires years of education, then years of residency and specialization before they become an expert … And even then, they still need to keep their skills and knowledge sharp throughout their careers.

Smart traders should take a similar path in their trading careers.

A few traders may luck out and become profitable within months, but they’re far from being experts. For others, it can take years to achieve profitability. And many will quit before getting there.

If you’re learning to trade, put your education first. And continue to work on it. And learn from trading mentors who know the markets. Try to shorten your learning curve by constantly improving your skills and strategies.

You Need a Plan

If you ever launch a trading platform as the market opens, you know that things can be pretty hectic.

Thousands of stocks tick up and down. It can be tough to know where to focus and what to do.

That’s why you need a plan. Every single successful trader I’ve ever met uses a trading plan that they use to help them navigate the markets every day.

Do Your Homework

Just because the market closes for the day, that doesn’t mean your work is over.

If you want to improve and be fully prepared for the next trading session, you need to do your trading homework…

Keep a trading journal and review it often to track your wins and losses. Work on your strategies, setups, and improving your trading mindset.

If you’re like me, you hated doing homework back in school. But this homework can be way more fun as you work to improve your market knowledge and skills.

Watch out for Con Artists

You can’t trust just anyone in the trading business.

There are shady brokers, lying trading ‘educators,’ and plenty of company leaders who will lie through their teeth — all to get their grubby paws on your money.

Keep your guard up. Never just take someone at their word. Do your research on every endeavor, whether it’s a trade, a trading course, a mentor, and so on. Always verify. 

Check that the educator actually trades, do your due diligence on brokers, and don’t blindly follow marketing hype.

There’s No Finish Line

No matter how successful you become as a trader, even if you have millions of dollars in the bank … if you continue trading, you have to continue to work. 

The most successful traders I know work insanely hard — they’re always looking to improve and refine their trading edge.

Maybe that sounds daunting. But trading in the markets can be so invigorating and interesting that you start to thrive on it.

It Could Change Your Life

The points I shared above may not be what you want to hear. So here’s a note on the positive side of trading…

Learning to trade and working to master it could change your life.

For example, imagine getting up every day, loving what you do — being your own boss and working from home or anywhere in the world…

In my world, that’s an absolute upside of trading and a big part of why I love this business so much!

Now, let’s talk trading tools…

StocksToTrade Pro

Maybe I shredded your hopes of quick, easy riches today. Can’t say I’m sorry…

Here’s what I will say … I believe trading education is key. And this resource is easy to access and can help you learn the market ropes: StocksToTrade Pro.

StocksToTrade Pro is a trading mentorship program and trading community built on top of the StocksToTrade platform.

Every trading day, you can join me as I run two live webinars. I show you exactly what I’m looking at in the markets and what my plan for the day is.

You’ll also have access to the live trader chat room, where you can interact with our dedicated members. Plus, you can attend weekly educational webinars where I share cutting-edge trading tactics.

If you’re ready to give your online trading education a boost, watch how a professional trader battles the markets, and learn powerful techniques, join us at StocksToTrade Pro!

Conclusion

There it is — my personal take on the realities of online trading. It’s not all sunshine and roses, but there can be massive upsides … and I’m thankful every day that I learned to trade.

A lot of people want to sell you a dream in this business, so make sure to always take everything with a grain of salt. You can save yourself a lot of time, money, and heartache.

If you appreciate my straight talk, read more of my posts right here on this blog or check out the SteadyTrade podcast.

And if you’re really serious about your trading career, come and join a community of growing and like-minded traders at StocksToTrade Pro!

I’ve loved the markets since I was a kid, so I’m happy to devote countless hours to improving my trading. How much time do you spend on trading and your education each week? Tell me in the comments below!