How to Trade On the Go
- Getting set up with mobile trading…
- Picking the app that suits you best…
- Two tips to mentally prepare yourself…
Dear Penny Stock Millionaire,
Who loves being stuck behind a computer all day?
I like to take advantage of the flexibility of day trading by constantly traveling and doing my work from wherever I am.
But sometimes I don’t feel like lugging around a laptop, and that’s why I think mobile trading is awesome.
With mobile trading, you can download apps that are just like online dashboards, and execute trades while you’re on the go. That means no more panicking when you have to step away from your computer for a few hours or when you’re traveling.
Here, I’ll dig into the benefits of mobile trading and how to choose the best apps to suit your trading preferences and lifestyle.
What Is Mobile Trading?
Mobile trading simply means trading that you do from a smartphone (or a tablet).
The “mobile” in mobile trading is both literal and figurative: the trading is, in fact, conducted on your mobile phone, and it can be done on the go.
With mobile trading, you don’t have to be stuck in an office, chained to your computer. You don’t even have to have your laptop, so you don’t necessarily have to chase WiFi signals at coffee shops or a shared work space.
Mobile trading allows you to manage your investments from anywhere that you have service. This means that whether you’re on vacation or just out running errands, you have access to your accounts and trading.
To clarify, mobile trading isn’t just a way of checking your account balances or the price action of stocks. You can access a platform for trading stocks on your phone, executing instantly no matter where in the world you are.
Using Your Mobile to Invest in the Stock Market
Getting set up for mobile trading is pretty easy. You just need to download an app, enter your information, and get trading. Of course, the setup will differ slightly depending on the app, but it’s generally pretty straightforward.
Perhaps more important than the logistics of your mobile trading setup, though, is getting yourself in the right mindset for trading on your phone.
Just because it’s on the same tiny screen you use to play Candy Crush doesn’t mean the trading should be taken any less seriously. Here are some tips for how to mentally prepare:
1. Define Your Goals
It’s incredibly important to have clearly defined goals. You can read more about why in my post on goal setting theory, but suffice it to say that goals are the best way to stay motivated and get clarity on how to actually achieve your goals over time by breaking them into manageable milestones.
However, goals can do more than just provide motivation. They can also help you decide the best approach for trading, regardless of whether you’re on a laptop, a desktop, or your phone.
One of the biggest ways is that it can help you determine the time horizon. In trading, the time horizon refers to the time frame in which you’d like to realize a financial goal.
For instance, if you’re saving for retirement, you might pursue position trading, because you have time to research and find stocks that will deliver over time.
However, if you wanted to save up for a down payment on a house within the next two years, you might want to take a more aggressive and risk-forward approach like day trading low-priced stocks.
There’s no right or wrong goal as a trader, so don’t edit yourself. But do be honest about your goals so that you can plot the best approach.
2. Research Different Apps
Mobile trading apps aren’t one size fits all. Just like any other program or service, different people look for different things to suit their needs.
Don’t just filter on how many stars each one has and choose the app with the most likes. Don’t trust the crowd or just listen to what someone else suggests: Do your own research.
With your specific goals in mind, start to read about the features of the different apps available. Look at a variety of different factors to determine not just how “good” the app is but whether or not it is in line with your goals and suits your trading style.
For instance, if a low or no fee app is important to you, be sure to read the fine print. There could be hidden fees or an account minimum, resulting in unforeseen costs.
On the other hand, if a well established and user-friendly experience is very important to you, choosing a better-known app like TD Ameritrade might be worth a slightly higher transaction fee.
Before settling on a mobile trading app, be sure to read reviews, look at the fee schedule, and consider what you want from your app before committing.
Figure out your account size. How much do you need to start trading? That’s one of the most common questions I get. Unfortunately, it’s not a cut-and-dry answer.
Different traders start with different amounts. For short selling, the figure I will usually say is that you’ll need to start with $2,000. But there are exceptions. For instance, one of my top students started with just about $1,500.
Others start with $10,000, and some penny stock traders will start with practically nothing.
Starting with a small account isn’t a bad thing. Actually, it can be a very good thing, because if you don’t have much money, you’ll have to focus on studying, which is probably more important when you’re just starting out, anyway.
When you start small, you can build your account incrementally and over time, and learn valuable lessons about how to trade effectively while you do it. This means that as your earnings scale up, so can your positions.
In terms of mobile trading, your account size may matter because while some platforms may have no minimum, others do. Make sure you’re not slapped with unexpected fees!
Learn the rules. It’s tempting to want to dive right in and get trading once you’re set up on a mobile app. But remember — this is real trading! It’s your actual hard earned cash at work.
Unless it’s your deepest desire to crash and burn your account fast, then take the time to learn the basics of trading before getting started.
Take the time to learn some trading skills before you start making mobile trades.
Without a foundation of education, you’re really just gambling. And the consequences can be big, no matter how little the screen you’re using to trade.
Since you can never know what the market will do, so there will always be a certain amount of risk.
But when you come at your trades form a place of planning and education, you can rest assured that you are doing all that you can to mitigate that inherent risk.
Tomorrow let’s look at some apps you can use to start getting into mobile trading.