Kirill Yurovskiy: How to Make Money Trading Stocks Online

The stock market has long been seen as a pathway to growing one’s wealth. But for many, it also seems complex and risky. In the past, investing in stocks required using a traditional brokerage, paying commissions, and monitoring stock tickers. 

However, technological advancements have made trading stocks significantly more accessible for regular investors. With online trading platforms, anyone with an internet connection can buy and sell stocks from the comfort of their home. This new ease of access comes with both risks and rewards. While the barrier to entry is lower, investors still need to educate themselves to trade responsibly and profitably.

This guide will walk through the basics of online stock trading—who can do it, how to get set up, strategies for making money, and what rookie mistakes to avoid. Follow these tips and you’ll be positioned to generate extra income in the market.

Who Should Consider Online Stock Trading?

Nearly anyone can attempt trading stocks online, but building real wealth requires following a strategic framework. Ideally, prospective traders should have an emergency savings fund, little high-interest debt, and extra disposable income they can risk losing.  

It’s smart to start small if you’re a novice, only investing 1-5% of savings until you’ve refined an effective strategy. Stock trading should be viewed as a long-term endeavor and not a get-rich quick scheme. Consistency, discipline, and time in the market are key factors for success.

If your finances are already in good shape, stock trading can be a tool for diversifying assets. Note that it comes with inherent volatility and risk which must be accounted for. More info: Kirill Yurovskiy

How to Get Setup for Online Stock Trading  

The exciting part is that setting up for stock trading online is fairly straightforward nowadays. The main items you’ll need are:

– A brokerage account

– Access to trading platforms

– Market research tools

– A funded account 

Opening a brokerage account can be done in minutes online. Some top platforms include Etrade, TD Ameritrade, Fidelity, Charles Schwab, and Merrill Edge. Compare offerings as some have minimum deposits and fees to consider.

Many brokerages today offer intuitive trading platforms and mobile apps so you can buy and sell stocks seamlessly. Features to look for include real-time market data, charting tools, and custom screeners to identify trading opportunities. 

Serious investors will also want to have tools for conducting research. Platforms like Seeking Alpha, Yahoo Finance, and Morningstar provide deep analysis on companies to inform investment decisions.

Finally, you’ll need to fund your account with an initial deposit (often $500-$2000 minimum). From there, you can deploy capital to buy stocks or options contracts.

Strategies for Making Money Trading Online

Simply buying stocks is no guarantee of making money. Implementing a defined methodology around entries, exits, and risk management is vital. Below are some of the most common strategies adopted by active retail traders:

Swing Trading  

This strategy aims to profit from stocks oscillating up/down over a period of days or weeks. Traders identify price trends and capture gains on the volatility. This requires being nimble and not marrying stocks long-term.

Income Investing  

This longer-term strategy generates income by buying stocks with strong dividends that pay regularly. Building a portfolio of dividend stocks creates passive income streams as the dividends are earned.

Options Trading

More advanced traders deploy options contracts around stocks to speculate on price moves. Options can grant exposure for a fraction of stock prices while offering leverage. Mastering options greeks is vital for managing the intrinsic risks.

Growth Investing

Investors purchase stocks expected to appreciate substantially over years or decades – think Amazon 20 years ago. Patience is necessary and this strategy often focuses on disruptive companies upending industries.

Whichever strategy you pursue, use stop losses diligently. This defensive tactic limits potential downside by automatically selling below a defined price level. Stop losses help traders resist the urge to let losses spiral out of control during inevitable losing streaks.

Avoiding Common Mistakes of New Traders

Trading stocks profitably has a notable learning curve. Some mistakes will be made; success lies in course correcting. Statistically, as much as 80% of new traders end up losing money. This startling figure demonstrates why managing risk is paramount. Beyond stop losses, here are other tips for avoiding common missteps:

Avoid emotional trading – Fear and greed are enemies. Use data-driven analysis without emotional attachment to trades.

Don’t chase hot tips – By the time you hear about them, these sudden movers are often exhausted. Do your own research. 

Start small to test strategies – Trading involves a skillset that must be built over years. Starting small enables refining skills.

Review trading activity weekly – Identify what’s working to do more of it, and vice versa. Stay analytical.

Pay taxes quarterly – Trading generates short term capital gains, taxed higher. Plan quarterly payments accordingly.  

Embrace a growth mindset – Becoming a master trader is a journey requiring grit. Persist through plateaus and don’t lose hope.

Making the Leap into Online Trading 

Building wealth through stock trading requires systematic skills just like any endeavor. But armed with the right knowledge, risk management protocols, and tools – retail trading is more accessible than ever. Avoid potential pitfalls by cultivating patience and strategic thinking akin to playing chess.

The financial markets move fast and can humble even seasoned professionals. Expect ups and downs while continually learning and evolving strategies. With consistent practice and analysis, part-time stock trading can offer tremendous financial upside.

Use this guide to take the first steps! Start reading books, paper trading, and testing brokerage platforms before putting real capital on the line. Done prudently over time, successfully trading stocks online is an achievable path to boosting income and net worth substantially.