If you are new to trading, knowing how to profit from other traders is one of the most useful stock trading strategies. The key is to network with more experienced traders so you can learn from the mistakes they have already made and benefit from the stock trading systems that they have developed over the years. The hard part is finding the right traders to network with. Below are some helpful tips on how you can find them and how you can learn from them so that you become a better trader.
Step 1: Start using StockTwits
The first thing you have to do is create a watchlist of stocks that interest you. Then, you need to create your own StockTwits account and start going to the StockTwits stock pages from your watchlist.
Step 2: Read and Evaluate what other Traders Have to Say
It is important to note that you should not have a position at this point in time. The goal here is to get a feel for what people are saying about the stocks that interest you before you even think of trading them. You also want to get a feel for the actual traders. Pay attention to their success stories and failures. Go to their profiles and learn more about them. Find out if they trade only one stock or many. Find out if they trade for a living. Most important, find traders that are good at what they do.
Step 3: Reach Out to Successful Traders
You would be surprised how many great people there are out there who would be more than willing to give out advice to new traders. All you have to do is ask. This does not mean that you will not run into some selfish traders who will block you and make you feel alienated. You have to be willing to put yourself out there. Find the good traders and ignore “trolls” that dispense insults. Don’t get caught up in troll traps. Remember your goal is to find the good traders, network with them and build solid relationships with them. Do not get sidetracked.
Step 4: Keep an Open Mind
Sometimes experienced traders will tell you things you will not want to hear. They may warn you and explain ways to trade with caution. You must be willing to take their advice. Often, new traders will have success on a few lucky trades and begin to feel invincible only to crash and burn because of it. Experienced traders will tell you things such as how to minimize risk and how to stay in the game. After all, it only takes one bad trade to ruin a new traders’s aspirations and stop them dead in their tracks.
Step 5: Ask other Traders What Stocks have been Hot and Which ones to Avoid
It is important to note that you must use your own judgement with this step. Do not blindly go out and buy any stock that somebody recommends. It is important to take your time and get to know the other traders well before you do anything. Research the stocks they mention and visit various stock pages on StockTwits. Study the latest news on the stocks and put together your own trading strategy. Remember that you should only trade with money you are willing to lose because it’s possible that you could lose it all when trading. If you are serious about becoming a trader you must learn how to stay in the game because it’s not easy.
Step 6: Don’t rely solely on StockTwits. Try visiting Stock Message Boards
Stock message boards are another medium you can use to network with more experienced traders. In fact, you may run into some long term value investors in stock message boards who have owned a particular stock for years. These investors can be great assets because they often have a great deal of knowledge when it comes to specific stocks that they have been holding onto for years.
Step 7: Beware of Paid Pumpers or Traders who want to take Advantage of You
One of the biggest drawbacks of learning how to profit from other traders is that some people have their own interests in mind. These types of people will not be difficult to find. They often spout out content that seems irrelevant or they try to convince you to pay them for their services. Just be wary of such people and focus on networking with good people.
If you have any tips on how to profit from other traders or if you have any questions or comments please do so below. Remember The Trade Locker is a free online community where traders learn from one another. Our goal is to help one another become better traders so if you have any suggestions please do so. If you haven’t done so already please sign up here since a Trade Locker Membership is 100% forever free.