Stock Market Trading Tools To Help Beginners Trade Like Pros During The Recession

The global stock market has been up and (mostly) down thanks in large part to the ongoing pandemic. To no one's surprise, this pandemic triggered a global recession with Worldbank.org going as far as saying that "It could plunge the world into the worst recessions since World War 2." Despite the uncertainty, we’ve found that rookie investors have been getting into the market thinking that they could take advantage of the sudden drops in stock prices.

Unfortunately, almost every beginner trader hasn't done even a fraction of the research needed to make educated trades. Chances are, they'll end up losing more than they make. We're going to make sure you won't end up like them.

After reading this post, you'll be well-equipped with the proper knowledge in stock trading so you can take advantage of these "new normal" prices for when the market inevitably shoot back up when the economy recovers. With some experience, a few well-placed trades, a bit of luck, you could be looking at a major win that will take you one step closer towards financial freedom.

The basics

Legendary investor Warren Buffett defines investing as "the process of laying out money now to receive more money in the future." The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.

Stock trading is basically investing money you can afford to lose and have that money work for you. Investing your savings or money you know you will need in the near future will greatly affect your discipline and patience -- leading to bad decisions.

With that in mind, let's walk through other important factors you should keep in mind as an investor to maximize your returns while minimizing your risks.

Know what kind of investor you are

Before you commit capital, you need to answer this question: What kind of investor am I? You need to know your tolerance for loss, timeframes, capital you can commit, and whether or not you're going to trade through a broker.

Some investors want to take an active hand in managing their money's growth, however, and prefer to "set it and forget it." More "traditional" online brokers, allow you to invest in stocks, bonds, exchange-traded funds (ETFs), index funds, and mutual funds.

Investing resources and references

Every good investor needs help. Even those who have been investing and trading for years need a refresher every once in a while on the latest market developments. Atom Finance can provide you with all the knowledge and guidance you could ever want. You can chat with fellow investors and receive real-time feedback. Their proprietary AtomBot automatically post relevant articles and events directly into each channel.

Atom Finance's portfolio feature also allows you to track and manage multiple portfolios and gather all your trading data in one simple dashboard. This feature is perfect for beginners since it simplifies and shows you only the data they need. The best part of the platform is that you can sign up and enjoy its features because it's completely free. Their optional Atom+ provides a few more features for advanced traders but beginners and even intermediate traders can do perfectly fine with just a base account.

Reliable trading platforms

The next thing you'll want to have is a trading platform. It's your gateway into the investing world and will allow you to buy and sell stocks. While there are a lot of trading and investing platforms out there, each offering its own set of features, we've found that M1 Finance gives beginners the best combination of features and usability.

Their app allows beginners to invest by using intelligent automation in a portfolio of stocks and ETFs for free. If you’re looking to invest for the long-term, with full customization and automation, look no further than M1. They also have their M1 Plus app that is on sale for $50 less than its original price. It offers a few advantaged such as a 2% interest rate on loans and a 1% cashback on qualifying debit card purchases. However, we do stress again that their standard app is more than enough for beginner traders.

Take advantage of these tough times. One must adapt and bend so as to not break when heavy winds blow. Do your due diligence and soak up as much knowledge as you can. You'll only have yourself to thank if you decide to make the effort and learn and with these tools, you'll leave financially wiser and you'll have no trouble staying on top of your financial stability even decades after this pandemic.