Trading on Stock market

@jak2010 (1550)
Papua New Guinea
July 23, 2010 7:34pm CST
I see some many advertisements on buying stocks and trading currencies on stock markets to make money. Many I am led to believe that you make money in minutes by trading curruncies and investing in stock market etc. Can anyone share expereinces on this or enlight me on this?
5 responses
@ptower76 (1616)
• United States
24 Jul 10
Trading in the stock market can be quite easy and rewarding. I currently have begun to paper trade (practice trades) with no real investment after taking an intensive course on learning trading strategies. I have only completed my second paper trade but both of the trades would have made me a little money. I plan to make 10 successful paper trades before trading with real money. The trick to trading I believe is finding stocks that are volatile on a daily basis and meet your investment criteria. For example, if you open a broker account with 500 dollars, you will only be able to trade a few stocks at ta time. You watch the stock on a daily basis and determine its floor (low) and its ceiling (high) on a daily basis. When you are comfortable with the stock you then purchase the stock when it is coming up off the floor and sell it just before it reaches its ceiling. For example, if yahoo for example begins daily at 14 dollars and in the morning goes down to 13 and then begins to climb in the afternoon to 15 before going back down to 14, you could order the trade to buy at 13 and sell at 15. This will be done in the same day and therefore you will make a profit of 2 dollars per share that you buy minus of course the cost of the trade. If you only have 500 to invest, you will only be able to purchas a few so while you made the profit, it will not be alot because of the fee. When you place the order you protect yourself with a protection stock in case the stock unexpectedly drops so you don't lose all your envestment. Of course, with a small initial investment i would look for stocks that are between 5 and ten dollars. There are many. It is important if you trade this way yourself that you have a brokerage account that provides direct access to ordering. The only way you can trade stocks if by having a broker account. It is also important not to let anyone trade your money for you. You need to do it yourself. Watch some stocks on a daily basis and see how the prices rise and fall and think about the strategy of buying low selling high and you can grasp the concept. Of course i have simplified it and there are other factors that you should be aware of before you actually begin trading.
1 person likes this
@aguas_aj (498)
• Philippines
24 Jul 10
Just as ptower said, stock trading can be very very rewarding, but is also very very risky. If you purchase stocks that are very unstable, you can get more money when its stocks goes up, but it can also ruin you if it goes down and did not go up anymore. For stocks, the more risk there is to the stock you are buying the money flexibility the stock can go up and down, which also means the money chances of you selling at high or low. Example, if you are going to buy a stock of a very stable and famous company, you can expect that their stock would almost always stay at the same price, not unless there's bid or a take over happening. I would not suggest for anyone who does not have an in dept business training to enter the world of stock marketing not unless you want to take the risk and is happy to lose money.
@ptower76 (1616)
• United States
25 Jul 10
Good point, knowledge of business is essential. Also, it is important to differentiate between trading and investing. Trading is something we do daily or over short time periods while investing in stocks requires holding on and receiving dividends and not profits from sales. As with everything in life, you are right, it can be risky
@divitiae (193)
2 Aug 10
Trading is for those who believe they can see the future in a graph, it makes no difference how far away that future is. Investers buy cheap and sell expensive regardless of how long it takes a company to become expensive.
• United States
25 Aug 10
Trading currencies is one of the riskiest methods of trading. I have been a full time trader for over 2 yrs and have seen 90% of those that tried fail. The market volatility is so "Fast" that if you blink you can be margined out before you even know it. If you are a trader have a plan and stick to it religiously! If you cant, then "invest" not trade. I would try swing trading to start vs. intraday trading. I would also recommend trying options vs. actual stock as you can minimize your risk and maintain a good risk to reward ratio. Remember to ALWAYS protect your money! Happy trading!
@jak2010 (1550)
• Papua New Guinea
28 Aug 10
Thanks, the interest of making fast money caught my eyes, but never that the kind of money needed to trade and I do not think I will trade, I think it is worth invest, a more prudent and safe way of making money. Thanks, by the what is swing trading and intraday trading?
@divitiae (193)
2 Aug 10
On average shares rise by 10% per year which beats cash, over the short term it is almost random which way the price gos but over years you should get a good return. To make a profit in minuites you would need to invest a lot of money in order to cover commission. I would suggest using shares more as a store of value than as a quick buy and sell before sticking the cash in a 0.5% savings acc.
• India
17 Aug 10
You can earn money from share market if you have patience. There are some standard rules for trding. You must follow money management techniques. Don't be greedy.
@jak2010 (1550)
• Papua New Guinea
22 Aug 10
Hey guys, those discussion are very useful to me , Thanks all of you.
• Philippines
3 Aug 11
trading in the stock market is very risky and just like gambling, you can win or lose. you buy stocks today and pray that the price will go up so you can sell with a profit. but what can you do if the price goes down? why not invest for a long time rather than trading. That's 2 different option in stock market. By investing, you invest small amount only but you have to do it every month. That way, you will never lose big if the market crashes down. And you should invest for a long time, say, about 5 years or 10 years or up until you retire. Normally, stock market earns 12 to 20% annually. So if you put money in a solid company you believe in, invest monthly and don't sell, pretty much you'll retire a millionaire.