Trading in the stock market is great. It can benefit your life in very many ways. But sadly many people don’t know of this. In this article, I want to cover the benefits of trading and how you could start trading.
Why to Invest in The Stock Market?
First of all, why do people invest in the stock market and why should I invest in the stock market? The initial idea behind trading in the markets is that you buy something (e.g. a stock) and later sell this exact thing again for more, ending in a profit for you. Buying and selling things in the stock market has become extremely easy nowadays and can be done with a click of your mouse. This means that you could literally make money by sitting at your computer and clicking a few buttons. If you become a good and profitable trader, you can earn and grow your money. This can be very lucrative and there are many people that have earned fortunes by trading in the markets. Trading has replaced many jobs and could theoretically also replace your job. You don’t need any real qualifications and degrees to start trading. All you need is a computer, an internet connection and some money to start trading.
A trader is his own boss who can work from home or actually from anywhere he wants as long as he has an internet connection. You could even do this at a beach in the sun. Additionally, trading does mostly not take as long as a full time job does. Another great thing is that your capital growth usually is exponential, meaning that the more money you earn, the even more money you can win in the future. Last but not least, trading is actually not that hard.
So what are you waiting for? Why not start earning fast and easy money to get rich today?
All the great things mentioned above sound amazing, right? But they only are half of the truth. Sure, if you are very profitable these things can become a reality! But this is only the case IF you are profitable and very profitable. This can be much harder than you think. In fact about 90% of all traders lose their money and don’t grow it. Before you start getting into trading, you have to get rid of the illusion that trading practically is an easy and fast way to get rich. Really many ‘trading sites’ try to tell everyone that trading is the easiest and fastest way to get rich. Mostly they say this, because they are scammers or because they don’t care about you as long as they get their money from you and your losses. Don’t get me wrong, trading can replace a job and can lead to great success. But the odds are against this. So don’t get into trading with the expectation that you easily will become a millionaire in a few days, weeks, months or even years. As sorry as I am to tell you, but this is nonsense for most people. Sure many people have done so and maybe you will too. But try to start things with a little lower expectations. Try to think of trading as a second income stream or something like that. Just because others have become millionaires, does by no means mean that you even will be profitable. Some people have even become rich by gambling in casinos. This does not mean that this is a good way to earn money fast.
So, how can you become part of the 10% of profitable traders?
The answer to this is easy! Just like most other things in life: you will need education to become successful! I really don’t understand how people don’t get this. It is exactly like most other things. You will always have to learn things first. You can’t speak a foreign language without any practice either or drive a car without any education on it. So why should things be differently for trading??? Many people just hear of trading, immediately open and fund a brokerage account and randomly pick some different securities that they ‘invest in’. The big majority of these people end up losing all or at least close to all of their deposited funds. Don’t do the same mistake! It is very likely that you won’t be profitable without any education and a concrete proven plan. This does not mean that you have to go out and buy some fancy, expensive trading education (You can still do this). There are plenty of free sites where you can learn all about different trading strategies (like this one). But please don’t be so stupid and do this, sadly so common mistake. Educate yourself before risking any of your hard-earned money. You won’t be able to get it back if you lose it. (Never invest more than you can afford to lose!)
How to Start Trading in The Stock Market?
So how to trade in the stock market? If you actually educated yourself and do know your stuff, starting to trade is extremely easy. Trading has become so much easier than it was not too many years ago. Trading with telephones or in big crowds (‘pits’) as you may know from movies can’t be further from the truth anymore. Nowadays, everything is settles over online broker platforms that have many and advanced features to analyze different positions. On these platforms, you can simply select a security and buy/sell them with the ease of a mouse click. Many brokers even offer mobile apps to trade on. So all you need to actually start trading would be a broker. There are thousands if not even millions of different brokers in the world. But not all of them are just as good as others. You should definitely do some research before choosing any one specific broker. Most good brokers have practice/virtual/paper trading accounts where you can practice you skills without actually risking any real money (more about paper trading, HERE).
Your broker choice should ideally also depend on what you plan on trading. You can trade many different things. You can trade everything from stocks and penny stocks, to options, futures, FOREX, ETFs, commodities and much more. If you are a complete beginner, you may not know all of these different asset classes and that is exactly why you should inform yourself before starting with anything. Before picking a broker and starting to trade, you should have learned things about the markets and should have a concrete plan.
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