Making money from the stock market is possible and they are many people doing it, unfortunately there is a large percentage failing as well.
Can you succeed in the Australian stock market?
How do you trade the market successfully?
Read below all you need to know to become a day trader and the best stocks to trade in the asx.
Do you want to become a day trader?
Popular movies like “The wolf of wall street” and “Wall street” make it all look too easy and glamorous. But it’s not such an easy gig. Successful traders either have it or they don’t. Learning the stock market and researching the companies play a big part in a trader’s success. Some traders can learn, trade and achieve success.
Is there a secret recipe. Most traders will not reveal how they succeed, but they would have developed a winning strategy by testing and trading. Once you start trading you will have wins and some loses, this is what will teach you how to build your winning strategy.
I will give you more information about day trading below, but first let’s get into which are the best stocks for starting day trading. The stocks are current as of publishing (mainly from comsec trading platform) and could easily change over a period of time. I hope to keep this updated.
These are some stocks below -apart from the comsec trading list above, that are popular as trading stocks in the Australian stock market.
What do you need to become a day trader ?
- Money $10,000 to $70,000
- Trading account/software
- Company and stock information
- Strategy & Tools
How much money is required ?
A trader can start from an amount as low as $2000 to start trading the market and make money, however you will be limited to mid to penny stocks trading rather than blue chips.
A$5000 to 10,000 is a much more realistic amount to start making side money to your job. And if you want to make a full-time income, i would say a minimum of $100 k+ investment with skills. I’ve seen people with 500k in their portfolio and still making only 75k a year.. so really it comes down to how good you are.
Trading account / software
To trade stocks in Australia, all you need is a trading account with your bank. Most top banks like Commonwealth, Westpac, ANZ, Nab etc can provide you a trading account.
Today you Dont really need any specialised software as most bank trading platforms provide tools to help you trade.
Company and stock informationMost bank stock trading platforms provide educational, research and analytics on companies and stocksThese above factors can make you a successful trader. Anyone can trade, but making money consistently will define your success. I will explain the above factors in detail below.
Strategy and tools
This is a going to be the backbone of your trading success. If you don’t have a strategy then you’re going to fail. Even successful stock trading people who say they don’t have a strategy, often actually have one. They develop a pattern of trading which they follow.
Unfortunately, a person can’t develop a strategy from day one, and so you will have to trade for some time before you create your own unique successful trading strategy, unless you are following someone else strategy that is already working. Tools are available and sold be people online which sometimes guarantee success, but I would be very wary of anybody trying to sell you guaranteed stock market success with a software tool.
I myself have been trading the stock market for 10 + years successfully and hope you have got enough to get started on your trading journey. Below I have featured a few stockbrokers’ platforms I have worked with and some specific for the trade types.
Comsec (commonwealth bank)
Commonwealth Securities, also known as CommSec, is Australia’s largest online stockbroking firm operated by the Commonwealth Bank of Australia. It offers a telephone based brokerage service and advisory service, though its Internet trading platform constitutes the vast majority of its business.
Nabtrade (National Australia bank)
You can open a nabtrade account and start trading domestic and international shares online from $14.95* . Nabtrade is an award-winning investment platform – with awards from Money magazine and CANSTAR for online trading, cash and margin lending.
Westpac online investing (Westpac Bank)
With Westpac you can invest in Australian shares and securities and over 25 global markets. You can Trade online from $19.95 or 0.11% of trade value (whichever is greater)^ with a Westpac Cash Investment Account
Westpac Banking Corporation, more commonly known as Westpac, is an Australian bank and financial-services provider headquartered at Westpac Place in Sydney. Founded in 1817, Westpac is Australia’s first and oldest bank. It is one of Australia’s “big four” banks. Its name is a portmanteau of “Western” and “Pacific”
ANZ share Investing (ANZ Bank)
ANZ Share Investing provides a convenient way to buy and sell shares, warrants, options and ETFs for people who want to manage their own wealth creation. The E*TRADE Australia brand was before the investing arm of ANZ which was retired years ago.
IG Markets is a global online share trading provider, offering traders access to Australian and international shares. Their trading rates are quite good with a low brokerage fees for Australian share trading at around just $8.00 per trade.
For US markets, the fee is US $10, or 2 cents per share.
What you need if you are opening a brand new account?
- Current Australian driver’s licence, and
- Australian birth certificate or Australian citizenship certificate, or
- Australian passport (current or one that has expired within the last two years) or current foreign passport including the signature page
How to get started trading ?
- Apply for a share trading account with your bank
- Verify your identity
- Deposit funds in your account
- Start trading!
Hope this list helps you get some success with your online stock investing journey as a day trader and Good luck!